The Pennsylvania Supreme Court ruled earlier this week that the state’s Gaming Control Board should review the application for the construction of Philadelphia’s second casino and particularly the property’s proposed ownership structure.
This could further delay the launch of the full-scale gambling venue, the construction of which was approved back in late 2014.
Stadium LLC, a joint venture between The Cordish Companies and Greenwood Gaming & Entertainment, was the one to win the bid for the attractive Stadium District plot. The company was preferred over three other applicants.
It is the Greenwood Gaming & Entertainment’s participation in the project that created the controversy that has prevented the gambling resort from being opened. The company in question is owned by Armenia-born businessman Watche “Bob” Manoukian. And here it is important to note that Greenwood Gaming & Entertainment owns an 85.84% stake in Parx Casino and Racing in Bensalem.
Under Pennsylvania laws, Mr. Manoukian cannot own a stake in another casino bigger than a 33.3% one. According to Pennsylvania’s Supreme Court, the state’s Gaming Control Board had failed to evaluate Stadium’s ownership structure properly and as a result, the businessman may eventually end up with bigger interest in the Philadelphia casino than allowed.
Justice Debra Todd wrote in the court ruling that a look at the businessman’s interests in the new casino project shows that he may have violated state ownership requirements. Under Stadium’s current ownership structure, Mr. Manoukian’s Greenwood Racing Inc. would receive 33% of the entity’s profits. A specially established trust, aimed to benefit the businessman’s three sons, would hold a separate 17% share.
The Supreme Court ruled that a closer examination needs to be conducted into his interest in the new casino so as to be found out whether Mr. Manoukian has been using the above-mentioned trust to circumvent state laws.
As mentioned above, it was in November 2014, when Stadium was selected as the preferred bidder for the South Philadelphia casino license. Said license gave the company the right to build a casino with up to 5,000 slot machines and 250 table games.
Introducing its plans to the Gaming Control Board, the casino developer has said that it would invest around $450 million into building a complex with Las Vegas-style gambling and different other amenities.
Live! Hotel & Casino, as the resort will be called, will feature a 200,000-square-foot casino with more than 2,000 slot machines and 100 table games, as well as a 200-room hotel, a parking garage with space for 2,600 vehicles, a conference center, and a spa, among many others.
