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Gaming board lawyers want Foxwood Casino license revoked

HARRISBURG - Lawyers for the Pennsylvania Gaming Control Board filed a motion today to revoke Foxwoods Casino's license, after the seven-man board unanimously rejected a consent decree that would have given the project's partners another six months to line up new investors.

HARRISBURG - Lawyers for the Pennsylvania Gaming Control Board filed a motion today to revoke Foxwoods Casino's license, after the seven-man board unanimously rejected a consent decree that would have given the project's partners another six months to line up new investors.

The board also continued fines of $2,000 a day on the project and demanded that the group pay $114,000 in the next five days, representing the fines accrued since March 3, when the board last reviewed the Foxwoods situation.

F. Warren Jacoby, an attorney for Foxwoods, said he was "surprised and disappointed" by the board's actions.

At the meeting, Jacoby testified that the Foxwoods group was engaged in "focused" talks with three potential investors, as well as "conversations" with two or three others.

Even though the group is facing the loss of its license, it will continue negotiations with possible investors, Jacoby said. "We have to work a lot faster."

Cyrus Pitri, chief enforcement counsel for the gaming board, said regulators will continue on a dual track with Foxwoods - resuming negotiations for an agreement while pursuing the license revocation.

The Foxwoods group has 30 days to respond to the motion. Pitri said it is possible that the board would hold a hearing with evidence and testimony some time this summer.

Under its license, awarded by the state in 2006, Foxwoods has until May 2011 to have 1,500 slot machines in operation. The new gaming law, however, would allow the project to apply for a license extension until December 2012.

Paul Boni, a lawyer for Casino Free Philadelphia, immediately called on the board to strip the project of its license. "Foxwoods is no longer eligible for this license," he said.

Boni chided the main individuals behind the project - developer Ron Rubin, New Jersey lawyer Lewis Katz, Comcast-Spectacor chairman Ed Snider - for not appearing before the board or directly stating their case. "They hide behind their lawyers," Boni said.

The Mashantucket Pequot Indian tribe of Connecticut was supposed to develop and finance the South Philadelphia casino, but fell on hard times, preventing it from taking the lead.

Las Vegas casino tycoon Steve Wynn came forward in March as a replacement, but abruptly backed out of a deal on April 8.

Foxwoods was under orders to update the board today on the status of its project, planned for South Columbus Boulevard in South Philadelphia.

Lawyers for the gaming board and Foxwoods had reached a consent agreement this morning. Kenneth McCabe, a board member, said before directors took a vote on the agreement that the board found the extension and conditions "not acceptable and not in the public interest."

Contact staff writer Jennifer Lin at 215-854-5659 or jlin@phillynews.com.