Latest Gaming News
Major announcements on the rest of the locations in Pennsylvania. The biggest
news was in Pittsburgh where Don Barden beat two much bigger competitors: the
powerful Cleveland-based Forest City that was teamed with Harrah's on one plan
and the Isle of Capri deal tied to a new NHL arena that involved Columbus's
Nationwide Insurance in their development.
In Philadelphia, Don Trump was
one of the big losers.
A winner in Philadelphia was Pequots from
Connecticut. Another Connecticut Tribe owns and has already opened a racetrack
casino in this neighborhing state. Two of the fourteen Pennsylvania locations
will be owned and operated by successful Tribes that have pioneered in
developing two of the largest gaming resorts in the world at Foxwoods and
Mohegan Sun in Connecticut. Mountaineer that owns Scioto Downs in Columbus,
will open in a few weeks at their Erie, Pa., track slots location that expects
to draw heavily from NE Ohio.
Boston Globe/AP, Breaking Webstory, Wednesday, December
20, 2006
Mashantucket Pequots get Pennsylvania slots
license
By
Marc Levy, Associated Press Writer | December 20, 2006
HARRISBURG, Pa. --State
gambling regulators on Wednesday awarded five slots licenses for casino projects
in Philadelphia, Pittsburgh, Bethlehem and the Pocono Mountains, while rejecting
bids that included a proposal for a slots parlor near the historic Gettysburg
battlefield.
The Pennsylvania Gaming Control Board awarded two
Philadelphia licenses to groups led by billionaire developer Neil G. Bluhm and
by Connecticut-based Mashantucket Pequot Tribal Nation, which runs Foxwoods
Resort Casino. In
Pittsburgh, the board awarded a license to Detroit-based
casino developer Don H. Barden.
Las Vegas-based casino operator Las Vegas
Sands Corp. won a license for a Bethlehem casino and businessman Louis A.
DeNaples won one for a Pocono Mountain resort.
The gaming board can award
as many as 11 permanent slots licenses, each allowing as many as 5,000 machines.
Six licenses are earmarked for the state's horse-racing tracks, while 13
applicants competed for the remaining five stand-alone licenses.
Among
the applications the board rejected were:
-- a hotly contested proposal by a
group led by Connecticut-based Silver Point Capital LP for a casino near the
Gettysburg battlefield;
-- an application by Donald Trump's Atlantic City,
N.J.-based casino company for a casino in Philadelphia;
-- a proposal by St.
Louis-based casino operator Isle of Capri Casinos Inc. for a casino in
Pittsburgh; Isle of Capri had promised to build a new $290 million arena for the
Pittsburgh Penguins without using taxpayer money.
So far, two racetracks
-- Mohegan Sun at Pocono Downs and Philadelphia Park -- already have opened
slots parlors under conditional licenses, while racetracks in Chester and near
Erie are expected to open slots parlors in the next two months.
Gov. Ed
Rendell rejuvenated a 25-year drive to legalize casino-style gambling in
Pennsylvania by promising that slots revenue would help reduce property taxes
and revive the state's declining horse-racing industry. The law passed in 2004
authorized up to 61,000 slot machines at 14 sites.
Pittsburgh Post-Gazette, Breaking
Webstory, Wednesday, December 20, 2006
PITG wins slots casino license for North
Side
By
Tracie Mauriello and Mark Belko, Pittsburgh Post-Gazette
HARRISBURG --
The state Gaming Control Board today approved PITG Gaming Majestic Star to
receive Pittsburgh's stand-alone casino license.
In unanimously
approving PITG, the board rejected proposals from Isle of Capri, which wanted to
build a parlor in the Hill District, and Forest City Enterprises, which set its
sights on Station Square.
Mr. Barden held hands with his wife Bella as
the vote was taken and shed tears when he knew he had won.
"My heart
skipped several beats. It was an exhilarating, incredible feeling."
Mr.
Barden said he plans to talk with Allegheny County Chief Executive Dan Onorato
today to discuss support for a new arena, which is being sought by the Penguins.
Local officials had pressed all three slots applicants for commitments to fund
an arena, but Isle of Capri had the most definitive pledge of
support.
Mr. Barden has already agreed to the so-called Plan B pushed by
Gov. Ed Rendell. That means he has pledged $7.5 million per year for 30 years
from casino revenue toward an arena.
Mr. Barden said he is not planning a
temporary casino. Instead he plans to open the permanent facility with at least
3,000 machines in March 2008. Eventually he hopes to offer 5,000
machines.
He said the casino would be "first class" and very similar to
Las Vegas.
He also noted that he would proceed on his pledge to help
redevelop parts of the Hill District.
Mr. Barden also became teary eyed
when he talked about Johnnie Bettis, father of former Steelers star Jerome
Bettis. Mr. Barden knew the Bettis family from Detroit and brought them into his
investment group.
Johnnie Bettis recently died.
"I think he had a
little to do with the success today," Mr. Barden said.
Michelle Sherman,
chief financial officer for Barden Cos., also burst into tears of joy when the
vote was taken. "Oh my God, I'm crying, oh my God. I'm overwhelmed. Mr. Barden
is the consummate visionary and entrepreneur. This is something he
deserved."
Mr. Barden owns five other casinos; this will be the
largest.
"This changes the whole direction of our company. We're going to
be bigger, stronger," she said.
Brian Ratner, Forest City executive vice
president of East Coast development, said, "We had a lot of plans for that
(Station Square) site. I don't know what we're going to do now. I don't know
what their reasoning was.
"All we can do today is congratulate Don
Barden. It's hard to know what the board's rationale was."
Pittsburgh
Council President Doug Shields said after the vote that the North Side appears
to be the best physical location.
"The North Side site, in my mind,
offers probably the best access given the highway infrastructure available," Mr.
Shields said. He also applauded the riverfront access of the casino and said it
could generate development of the Manchester neighborhood.
But Mr.
Shields noted that the vote leaves open the question of the future of the
Penguins in Pittsburgh. Isle of Capri had an agreement with the Penguins to
provide money for an arena, which the team has been seeking to replace Mellon
Arena.
"We will begin to sit down and assess what we need to do in
regards to a public auditorium, both the city and the county," Mr. Shields
said.
The Penguins ownership group did not issue an immediate statement
and planned to meet on the decision this afternoon.
City Councilwoman
Tonya Payne, in whose district the casino will sit, said she was "totally
shocked" by the decision. An ardent supporter of the Isle of Capri's bid, she
nonetheless welcomed the news that the facility would be on the North Side.
"This is good news for the City of Pittsburgh, period. This is revenue we get
without any overhead."
She said the city should make sure that Mr.
Barden's group goes through with the development of the Hill
District.
Before the Pittsburgh vote, the board approved HSP Gaming and
Philadelphia Entertainment and Development for the two available licenses in
that area. Both Philly winners are riverfront developments estimated at at least
$550 million.
The board also awarded the two licenses available outside
the big cities to the Las Vegas Sands for Bethlehem and Louis DeNaples for
Pocono Mountain.
The board chose those over a controversial proposal to
locate a casino near Gettysburg National Battlefield.
Pittsburgh
Post-Gazette, Breaking Webstory, Wednesday, December 20, 2006
Barden's group slipped
past the bigger players to win
Wednesday, December 20, 2006
By Bill Toland, Pittsburgh
Post-Gazette
Initially viewed as the long shot in this three-horse race,
Detroit businessman Don Barden emerged from the pack today by winning
Pittsburgh's lone casino license and earning the rights to build a slots parlor
on the North Shore.
The Pennsylvania Gaming Control Board voted in
Harrisburg today in favor of Mr. Barden's PITG Gaming, the local incarnation of
his Majestic Star casino chain, which bested its two better-known competitors:
Isle of Capri Casinos, which had teamed with the Pittsburgh Penguins to propose
a casino and new arena in the Lower Hill, and Harrah's Entertainment, which
partnered with Cleveland's Forest City Enterprises on a Station Square casino
plan.
Harrah's had the biggest industry name, and Isle of Capri was the
choice of thousands of sports fans because of its ties to the hockey franchise,
but in the end it was Mr. Barden who had the best proposal, as judged by the
gaming board.
While Harrah's and Isle of Capri made their splashes late
last year, Mr. Barden waited until April of this year to fully unveil his plan,
doing so in front of the gaming board. He recruited retired Pittsburgh Steeler
Jerome Bettis to front the proposal, and announced that his parents, Johnnie and
Gladys Bettis, neighbors to Mr. Barden, would be investors in the casino, as
would Motown singer Smokey Robinson. (Johnnie Bettis has since died).
At
the same meeting, Mr. Barden also pledged $7.5 million a year for 30 years to
support construction of a new arena for the Penguins, taking away some of the
leverage that had been held by Isle of Capri to that point. Also in counterpoint
to the Isle of Capri plan, he offered $350 million for investment in the Lower
Hill District.
PITG won't build a temporary casino, as Isle of Capri and
Harrah's would have, instead opting to concentrate full bore on the permanent,
$450 million facility between the Carnegie Science Center and the West End
Bridge. Plans call for the 400,000 square-foot casino to house a cylindrical
glass atrium, four restaurants, three lounges, bars, shops and, of course, rows
and rows of slot machines. Construction should take 14 months, meaning it will
be open by spring 2008, although the gaming board itself has questioned that
ambitious timetable.
Mr. Barden's plan was more palatable on a number of
fronts than either the Hill or Station Square casino proposals. The traffic jams
that may have come along with the Station Square casino won't be as much of a
problem on the North Shore, except before and after Pirates and Steelers games.
And by offering to spend development money on the Lower Hill, without putting a
casino there, Mr. Barden extinguished the main complaint of Isle of Capri
opponents -- that a casino so close to the Hill would spell disaster for the
neighborhood and its residents.
Still, Mr. Barden had two high-profile
opponents, namely the Steelers and the Pirates, neither of which favored the
casino or wanted it to interfere with their own North Shore development
plans.
But his legislative allies -- namely, Rep. Jake Wheatley and
presumptive House Speaker H. William DeWeese -- may have been enough to offset
the concerns of the two sports franchises. Both were guests of Mr. Barden at
Super Bowl XL, which was played in Detroit in February. And Mr. Barden, who is
black, is also the only minority applicant in the state, which was considered an
advantage because the state wanted to include minority-owned businesses in its
new casino enterprise.
Even though Mr. Barden has committed $7.5 million
a year to a new arena, the issue isn't exactly settled. The Pittsburgh Penguins
hockey franchise had hitched its wagon to Isle of Capri and its promise of $290
million in arena funding. Now the franchise, if it is to stay in Pittsburgh,
will have to negotiate the terms of a "Plan B" financing arrangement. Jim
Balsillie, the Canadian businessman who agreed to buy the
Penguins then
backed out at the last minute, seemed agreeable to "Plan B," but new owners,
whoever they are, might not be as eager to contribute their own funds to a new
arena.
The winner: The Majestic Star is proposed as a $450 million
facility between the Carnegie Science Center and the West End
Bridge.
Details: Plans call for the 400,000 square-foot casino to house a
cylindrical glass atrium, four restaurants, three lounges, bars, shops and, of
course, rows and rows of slot machines.
Work: Construction should take 14 months, meaning it will
be open by spring 2008






I think Don Barden is a serious player in the casino gaming world and he obviously had the financial resources to make the cut. A minority firm must have a visible presence in the gaming environment because many of the customers and vendors are minorities, especially in the big cities. Why let the "Big Boys" get all of the market all of the time? There is surely enough to go around.
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