Casino foes at a loss
At the end of last month, the Pennsylvania Gaming Control Board surprised many with its decision to push Foxwoods Casino back to its original location along Columbus Boulevard in South Philly.
For almost a year - following a push by Mayor Michael Nutter and other local politicians to get both of the city's planned casinos to relocate - Foxwoods Development Co., had been working to bring its project to 8th and Market streets in Center City.
But, the gaming board, apparently tired of delays, instructed the casino developer to focus on its original location.
For some foes of Philadelphia's would-be slots parlors, the decision was seen as something of a victory.
Casino-Free Philadelphia and other local groups gathered over the last year to decry a move that would have placed a multimillion-dollar gambling house in the heart of the city that is, essentially, America's birthplace. Strong opposition also came from resident's of nearby Chinatown, where leaders worried about the negative impacts of gambling addiction.
However, according to Jethro Heiko, director of Casino-Free Philadelphia, any celebration over Foxwoods' backtracking is premature.
Instead, he said the gaming board's decision threw his organization for a loop, and he's not quite sure with what to do next.
"What's next?" Heiko asked during a recent strategy session held at his Fishtown home on Wednesday, Sept. 9. "That's hard to know."
Heiko said that Casino-Free Philadelphia is essentially an entirely volunteer organization - it has one paid employee, organizer Lily Cavanaugh - and is focused on extracting the city's two proposed casino projects, Foxwoods Casino and SugarHouse, a 1,700-slot project planned for a site along Delaware Avenue in Fishtown and Northern Liberties, from the city entirely.
But achieving that goal has kept the anti-casino protesters busy.
During the recent strategy session - attended by just three volunteers - Heiko discussed Foxwoods' newest hurdle and how the latest development might help, or potentially hinder, the group's goals.
The decision to push Foxwoods back to South Philly came with the condition that the facility be redesigned with a smaller interim structure, allowing the slots parlor to be up and running sooner than the original plans might have allowed.
The change, Heiko said, throws out the original proposals.
"What's proposed now is very different . . . From the point of an investor, they are less attractive," said Heiko.
When investors first got involved in the casino projects almost three years ago, noted Heiko, the economic market was vastly different.
Since the recession hit last year, casinos from Atlantic City to Las Vegas have seen plummeting revenue, raising concerns about using gambling proceeds as source of revenue for state and city budgets.
The economic meltdown has also been a thorn in the side of SugarHouse's backers, who have struggled to come up with some $150 million in funding after their financing fell through last fall.
"There's also the issue of saturation in a decreasing market," said Heiko, stating that competing casinos in Chester, Bensalem, Bethlehem and Atlantic City might have made the customer pool that a Philadelphia-based casino would pull from that much smaller.
The economy has had an impact on Casino Free as well.
Heiko said that the all-volunteer organization depends on donations in order to pay its sole employee and afford rent on its Center City headquarters at 714 Market St. and other costs.
"Pamphlets don't print themselves," joked Cavanaugh.
The volunteers said their efforts are part of a very-much "grass roots" campaign. But, they said the goals are worth the unpaid hours of effort.
"I think it's a lot like the David and Goliath battle," said volunteer Ron Abrams, of Olde City. "And, each of them, David and Goliath, had different strengths because of their size."
Yet, the group continues undeterred, hoping that by talking with residents door-to-door, regularly attending meetings and holding protests, the group's message might reach investors considering putting money into the proposed casinos.
"There's people on the inside saying 'it's time to cut and run.' We're hoping to communicate with those people," said Heiko.
But, some might say Casino-Free's efforts are in vain.
So far, while delays and legal hurdles have held up the construction of both of the city's proposed casino projects, neither developer has backed out of plans to bring their casino to the city.
Does that mean Casino-Free has failed?
"We thought we already lost," said Heiko, referring to their reaction after learning of 2004 act that called for two Philadelphia casinos.
"Since then, we've been trying to go back and raise questions that should have been asked," he said. "We don't get to control the world, but neither do the casino owners. It's a complex world. We are strategizing and try to redefine this new reality that casinos aren't financially viable."
But "financially viable" is a relative term, especially when looking at the two casinos on the city's periphery.
In August, Harrah's Chester Downs in Chester, Pa. grossed more than $25.7 million from its slot machines. Philadelphia Park in Bensalem took in over $30.3 million during the same time period.
With that kind of money on the line in Philadelphia, developers with local slots licenses aren't likely to head for the hills any time soon.
Reporter Hayden Mitman can be reached at 215-354-3124 or hmitman@phillynews.com



