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Agency asks for dismissal of Foxwoods Casino lawsuit seeking $50M

The Pennsylvania Department of Revenue, represented by attorneys from Ballard Spahr L.P., asked a U.S. Bankruptcy Judge in Philadelphia to dismiss or abstain from hearing a lawsuit by the Foxwoods Casino group seeking to retrieve the $50 million license fee Foxwoods paid in 2007.

The site once proposed for the Foxwoods Casino, at 1499 South Christopher Columbus Blvd. (Clem Murray / Staff Photographer)
The site once proposed for the Foxwoods Casino, at 1499 South Christopher Columbus Blvd. (Clem Murray / Staff Photographer)Read more
    by By Harold Brubaker, Inquirer Staff Writer
    Published 

The Pennsylvania Department of Revenue, represented by attorneys from Ballard Spahr L.P., asked a U.S. Bankruptcy Judge in Philadelphia to dismiss or abstain from hearing a lawsuit by the Foxwoods Casino group seeking to retrieve the $50 million license fee Foxwoods paid in 2007.

In connection with an April 1 bankruptcy filing, the Foxwoods group sued the state in May. The Pennsylvania Gaming Control Board revoked Foxwoods' license in 2010, and the group lost bids in state court to win back the $50 million.

The Foxwoods group - formally known as Philadelphia Entertainment & Development Partners L.P. - has huge debts, including $55 million or more owed to RBS Citizens for a loan on land that has since been sold.

Additional unsecured debt amounts to nearly $24 million, according to court documents.