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Editorial | The Atlantic City Memo

Foxwoods' side bet

It made little enough sense for Pennsylvania gambling regulators to drop two casinos on Philadelphia's traffic-choked Delaware River waterfront. Now it makes even less.

As revealed this week, one of the key reasons cited for choosing Foxwoods Casino Philadelphia - that it had no Atlantic City operation - may not hold water.

Time for a do-over?

The state Gaming Control Board, under chairman Thomas Thomas "Tad" Decker, says no.

There's enough cause for concern, though, to warrant court review of how the Philadelphia licenses were awarded. Foxwoods' lack of candor about its Atlantic City plans offers at least a plausible reason to reopen the the slots-parlor licensing process.

That review could come if a state Supreme Court challenge is lodged by any losing rivals in the contest for two lucrative city slots-parlor licenses.

(Inquirer CEO and publisher Brian P. Tierney was an investor in one rival, the TrumpStreet Casino.)

This news will surely come up in City Council's deliberations over a proposed City Charter change on gambling - a pivotal debate that's taking shape amid the clamor from 27,254 citizens who put their names to Casino-Free Philadelphia petitions.

The issue to explore is whether Foxwoods flunked a test for integrity by failing to share information about its exploration of a casino deal in Atlantic City. In a proposal outlined in an April 2006 memo, Foxwoods and MGM Mirage were considering construction of a casino next to Trump Marina on MGM land.

Yet, while vying for a license, both eventual winners Foxwoods in South Philadelphia and SugarHouse Casino in Fishtown trumpeted the fact that they had no foothold at the Shore.

Decker and the six other political appointees on the Gaming Board later said that was an important consideration in their decision. Why? So that this city's two slots casinos wouldn't be tempted to steer customers to New Jersey, where casino taxes are far lower.

During a November hearing, Foxwoods executive Gary Armentrout went out of his way to note that his company had "no property to protect in Atlantic City." This sounded like a guy who wouldn't even take his family to A.C. for a stroll on the boardwalk.

This week, Foxwoods officials say they have no current plans to set up shop at the Shore. They described the MGM memo as citing potential deals in Atlantic City. A company spokesman said, "We stand behind our statements to the Gaming Board."

Decker et al would have been better served by a Foxwoods statement that included the word "never" with regard to Atlantic City.

Every 10 minutes, it seems, a new flaw in this casino process crops up. Even the open-minded are losing confidence that Pennsylvania can manage the advent of casinos without disaster.

 

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