Gaming News

Pennsylvania horsemen file opposition to casino plan

BENSALEM, Pennsylvania – (PRESS RELEASE) -- The Pennsylvania Thoroughbred Horsemen's Association today filed its official opposition to the proposal by Greenwood Gaming, the owner of Philadelphia Park Casino and Racetrack, to have its temporary facility deemed permanent by the Pennsylvania Gaming Control Board. The Horsemen are seeking to require Greenwood Gaming to build the world class-destination resort and a stand-alone $300 million casino it committed to during the licensure process before the Pennsylvania Gaming Control Board.

In its filing today, the Pennsylvania Thoroughbred Horsemen's Association notes that Greenwood's plan "will result in diminished revenues to the Commonwealth, the local municipality and the county and will adversely impact live racing within the Commonwealth." The response also points out the economic impact, noting that "granting Greenwood Gaming's Petition would deprive the local community and the Commonwealth of the promised economic development impetus envisioned by the legislature and the Governor in the construction of legitimate world class facilities."

"Philadelphia Park's proposal is unacceptable and is a transparent attempt to avoid the financial investment it committed to as a condition of its gaming license," said Michael P. Ballezzi, Executive Director of the Pennsylvania Thoroughbred Horsemen's Association. "If the demand for slots at Philadelphia Park is as high as its owners maintain, then it should be making every effort to move ahead with construction of a stand-alone facility that can hold additional slots machines and will provide both slots and horseracing patrons with a complete entertainment experience."

Less than six months after the Gaming Board granted Greenwood Gaming a Conditional Category 1, the owner of Philadelphia Park is now claiming that it is "no longer prudent nor feasible to commence construction of a replacement 'stand alone' facility within the time frame" required by state law and as a condition of its license.

"By having the current facility designated permanent, Philadelphia Park would essentially be removing the teeth in the gaming law that could be used to force it to live up to its economic development and investment commitments," said Ballezzi. "There would be nothing left that could be used to force Philadelphia Park to even develop a new master plan much less implement it. Philadelphia Park could essentially operate out of the current facility, which amounts to little more than a slots warehouse, indefinitely with no further capital investment."

Ballezzi noted that Greenwood Gaming is essentially saying "trust us," trust that they will invest $350 million in a new facility. "That doesn't cut it," said Ballezzi. "If Philadelphia Park is truly committed to making this financial investment, they need to put it in writing in a legally enforceable document with a firm timeline. Anything short of that is just talk."

Ballezzi also responded to those defending Greenwood Gaming and their claim that "no one ever expected a Bellagio or a Borgata in Pennsylvania and not at Philadelphia Park." Ballezzi noted that Greenwood Gaming executives set those exact expectations in meetings with the Bensalem Gaming Advisory Board, telling them to "Think Borgata. Think Bellagio." Those comments were reported in the Bucks County Courier Times. "Anyone who has visited Philadelphia Park knows that it is a far cry from the quality of any casino in Atlantic City, much less the Borgata or Bellagio. We didn't set the expectations, Greenwood Gaming did."

The Pennsylvania Thoroughbred Horsemen's Association also took issue with a number of claims made by Greenwood Gaming in a public statement yesterday, including its assertion that it has already made a capital investment of $171 million. That amount includes Greenwood Gaming's $50 million license fee to the Commonwealth, an estimated $31.5 million in slots machines and likely other fees needed to obtain a license, including legal fees, as well as engineering and design fees associated with the original master plan it submitted to the Gaming Board, a plan it is now seeking to scrap.

"For Greenwood to compare the investment made to date to the $300 million investment it originally promised is laughable," said Ballezzi. "It is insulting to the public that they would even include the cost of slots machines and their license fee into so-called capital improvements made to the current structure."

Greenwood also misrepresented a required $12 million investment in backstretch improvements on the horseracing side. That investment is a contractual obligation made by Greenwood Gaming as part of a contract it signed with the Pennsylvania Thoroughbred Horsemen's Association. Those improvements were demanded by the Horsemen as a requirement during contract negotiations with Greenwood to correct the deplorable backside conditions at the racetrack created by Greenwood's inattention and neglect. Greenwood also has yet to even commence any of those improvements, $2 million of which are required by contract to be completed within the next several months.

"We invite any member of the public or the press to tour the backstretch facilities to witness first hand the deplorable conditions we are faced with every day," said Ballezzi. "But I doubt Greenwood Gaming would allow such unfettered access to the backstretch, as it would demonstrate how badly the owner of Philadelphia Park allowed its operations to deteriorate."

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