Site last updated: Thursday, October 1, 2026

Log In

Reset Password
Butler County's great daily newspaper

Pa. casino troubles continue

Gaming board faces criticism

HARRISBURG — State gambling regulators have approved a rescue for a financially troubled Pittsburgh casino project, but problems plaguing three other prospective casinos may be far more difficult to resolve.

A political stalemate in Philadelphia has left two projects there in limbo, and a northeastern Pennsylvania casino is being managed by a state-appointed trustee while its owner fights four counts of perjury that could cost him his $50 million slot-machine license.

As a result, the Pennsylvania Gaming Control Board has drawn criticism over its choices of casino projects.

Sen. Jim Ferlo, D-Allegheny, submitted comments to the agency saying grave deficiencies exist in the board's decision-making. Sen. Jane Orie, R-40th, said it has failed to act proactively and demand accountability from the casino groups it has licensed.

"I also believe it has, and will continue to, cost the commonwealth financially," Orie wrote.

The board has maintained that it did its duty in every case, and made the best choices available in licensing a new casino industry that contributes to the government more than half of every dollar it brings in.

Many of the problems dogging the casinos — for instance, efforts by Philadelphia city officials and lawmakers to force the casinos to move from planned sites on the city's riverfront — have nothing to do with the board, agency officials have said.

On Thursday, the board approved the financial rescue of the first owner of the Pittsburgh casino that the agency licensed. Board members thanked Chicago real-estate billionaire Neil Bluhm, who is spearheading the new investor group — and bristled at the criticism.

"There are people who would like us to make perfect predictions having to do with risk," board member Gary Sojka told the audience just before the unanimous vote to approve Bluhm's new ownership group. "That isn't possible."

Board members also have insisted that no one foresaw the tightening credit markets and spiraling construction costs that waylaid the ability of businessman Don Barden, who won the original Pittsburgh casino license, to finance the entire project with borrowed money.

Seven slots casinos are up and running, including six at racetracks. The seventh, Mount Airy Casino Resort, is being overseen by a board-appointed trustee while owner Louis DeNaples fights state police charges that he lied to the board's investigators to win the license.

In the coming months, the board will have to decide whether to award a license to Centaur, which has applied for a slot-machine casino license at a horse-racing track it has approval to build 55 miles northwest of Pittsburgh.

Centaur is trying to arrange financing for the Valley View Downs racetrack and casino after it violated the terms of its first financial commitment last month because it had not yet received the slots license.

In Philadelphia, Gov. Ed Rendell, who pushed for the state law that legalized up to 14 slot-machine casinos in 2004, has agreed, if halfheartedly, to try to engage the casino owners and city officials in resolving differences.

But Rendell did not promise results after Philadelphia lawmakers asked him to intervene, saying "nobody should get too excited."

"The only way these casinos can be legally re-sited is if the casinos voluntarily agree," he said last month.

On Thursday, he is scheduled to meet with Philadelphia Mayor Michael Nutter and representatives of Foxwoods Casino Philadelphia, which is suing the city and accusing it of defying a state court order to issue a zoning permit.

More in Pennsylvania News

Subscribe to our Daily Newsletter

* indicates required
TODAY'S PHOTOS