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Thursday, December 18, 2008
Donald Trump
Donald Trump sued the state Gaming Control Board in federal court this afternoon for rejecting in 2006 his bid to build a casino on the site of the former Budd Co. plant in Nicetown with a group of investors*. Trump’s lawsuit, filed in the state’s Middle District in Harrisburg, accuses the board’s members of violating the U.S. Constitution's protection on interstate commerce.

The board, while considering five applicants for two casino licenses in Philadelphia, weighed whether casino operators with properties in Atlantic City would attempt to recruit customers here and then divert them there. Pennsylvania’s casinos are taxed at a rate of 54 percent. Atlantic City’s casinos are taxed at a rate of 9.25 percent. “The board has considered the fact of competing Atlantic City properties as a negative factor for licensure in Philadelphia,” the Gaming Control Board wrote on Feb. 1, 2007 about its Dec. 20, 2006 decision. The board singled out Trump, who has three Atlantic City casinos, noting his company had recently emerged from bankruptcy and could “lure patrons… to assist in the rebuilding and revitalization of properties there.”

Trump is asking a federal judge to overturn the state-awarded gaming licenses for SugarHouse in Fishtown and Foxwoods, which was approved for a South Philly site but is now considering relocation to the Gallery at 11th and Market streets. The lawsuit says Trump and his investors spent more than $10 million in planning for their Nicetown location and were rewarded with a “discriminatory criteria” from the board that wasn’t part of the 2004 state casino law. That, the lawsuit continues, gave an unfair advantage to applicants with no business in Atlantic City.

Trump’s action today is the first of three likely moves. The lawsuit is expected to be followed by a request to the Gaming Control Board for a hearing to revoke the casino license for Foxwoods, which is considering a move after two years of battles with community groups and the city about its South Philly site. Trump is also likely to file a petition to intervene if Foxwoods files a request to move with the board, which would have to hold a hearing to consider and vote on it. Trump's lawsuit seeks to stop the Gaming Control Board from taking further action on the current local casino licenses until the issue is resolved. That could eventually give Trump another chance at participating in a local casino.

Trump three months ago ripped Rendell for “outrageous” behavior for helping to engineer the potential Foxwoods move. A former friend of Rendell’s, Trump said he didn’t expect to ever seek casino business in Pennsylvania again. “Pennsylvania is a little too political of a state for me,” Trump said then. “It sounds like you have to be a friend of the governor to get a casino.”

* Brian Tierney, now CEO of Philadelphia Media Holdings, which owns the Daily News and Philly.com, was one of the local investors in Trump’s Philadelphia application, under the name Keystone Redevelopment Partners LLC.
Posted by Chris Brennan @ 2:08 PM  Permalink | 15 comments
Comments   
Posted 02:37 PM, 12/18/2008
WildBill
Trump is absolutely correct on this - the PA Gaming board is a disgrace - look no further than the Mount Airy casino in the poconos which they granted to a "friend" with mob ties and a long laundry list of corruption / crime
Posted 02:40 PM, 12/18/2008
bensalemite
This just feeds my long-standing fear that all this nationwide casino development was too much too fast, and that, in particular, Pennsylvania will eventually end up with wasted real estate development.
Posted 02:41 PM, 12/18/2008
CleanupPhilly
The Nicetown site did seem to have less community opposition than Foxwoods. The best solution is to give a 3rd casino license to Philly. Just write the legislation in Harrisburg and pass it in exchange for Trump dropping the lawsuit, and, voila, we have three casinos that can operate in a city that can absorb them and needs to continue to decrease wage taxes here to grow the economy. Can Trump build a nice enough casino to attract business during an economic downturn? That is the question given the current performance of his AC casinos. Trump antagonizing Rendell and Rendell antagonizing Trump is not productive. Add Nicetown.
Posted 02:46 PM, 12/18/2008
Stanley Levin
You go Donald! Sue the pants off them!
Posted 02:52 PM, 12/18/2008
gogglespaisano
trump never pays his bills on time...always 90+ paying casino vendors. he made many a small business go bankrupt with slow or no paying of bills...many of his properties have deferred maintenance..not saying he should not come here or does not have a valid argument - just need to view all sides of the story
Posted 04:00 PM, 12/18/2008
cboath
I think CleanupPhilly has the right idea. An extra casino license would solve the problem easily. The casino in Nicetown would draw from a different demographic and generate revenue anyway.
Posted 04:26 PM, 12/18/2008
Pat c
Trumps real estate holdings are losing money and he is just trying to find ways to cover his losses. He should stay in New York.
Posted 04:47 PM, 12/18/2008
Voytas
Just what we need, another building that begins with the word "Trump". Why doesn't he open a casino in NY City......oh, that's right too political. Crawl back under the rock you came from Donald.
Comment removed.
Posted 05:18 PM, 12/18/2008
Mutt
He can't make money with his casinos, so he has to sue and seek taxpayer money. Classy!
Posted 07:12 PM, 12/18/2008
usonis
I always thought: 1) Trumps location should have been one of the one's selected. They did everything the community asked them to do and had little opposition. It also served a completely different side of the city. 2) The minute "Fast Eddy" anounced he was going to get involved in selecting a possible new location for Foxwoods, it was going to be a huge mess. You can not award a license based on a site, then move the site. Although I feel The gallery is a far better location, it is not fair. 3) The fact the Trump does own 3 properties in AC is a huge plus. They already have the clientèle and the name. Let them ship people back and forth to AC. I would have a bus depart from Nicetown to AC twice a day. $20 for the ride and you get a Free trip to the buffet when you get back to Philly. If they are going to go to AC, they are going to go. AC still has the table games we don't. Let them see the Nicetown location in the process. 4) The Phillies are the team to beat in 09'.
Posted 07:55 PM, 12/18/2008
John Jr.
Trump runs unimpressive casino operations and has run Atlantic City casino's into the ground for poor financing. He is right in his statements of rights but he is not a good pick. Philly already has no class and he would make it worst...Hey send in the apprentices to do a better job!
Posted 10:31 PM, 12/18/2008
rbpeeple
Yeah...let's add a third casino that NO ONE can agree on...super idea. Go Donny!
Posted 03:44 AM, 12/19/2008
Metropolitan
Mr. Trump's intended casino location on the former Budd Company site was only a few blocks from elementary schools, high schools and university campuses. Mr. Trump should tell the advisers who recommended this location to him "you're fired".
Posted 06:04 PM, 12/19/2008
PhillyS1980
There's more support than you realize for Foxwoods in South Philly. All of this is REALLY a game. Once all hands are greased, the Casinos (and anyone else with cash) can play where they want to play. Does ANYONE seriously believe Michael Nutter or City Council CARE about the people of Philadelphia? How much "care" did they show to the folks in Chinatown who do not want a casino there. It's worth it for The Donald to try and hold up the Casinos here. Peanuts to him and his lawyers, while they try ti keep their AC Casino's up and running. Would love to know who just MIGHT be funding the Anti-Casino movement in Philly, Could it be The D........
15 comments
About Chris Brennan and Catherine Lucey
PhillyClout
Chris Brennan, a native Philadelphian and graduate of Temple University, joined the Daily News in 1999. He has written about SEPTA, the Philadelphia School District, the legalization of casino gambling, state government, the mayor, the governor, City Council and political campaigns.

Catherine Lucey joined the Daily News in 2002. Since then she has written about murderous drug gangs, political protesters and Harry Potter. For the past two years, she covered the 2007 mayoral election. Now that the battle is over, she has moved down to the City Hall bureau where she will report on the Nutter administration.

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Catherine Lucey
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