Supreme Court Rejects Slots Bond Proposal by Pennsylvania Gaming Board
On March 29, 2007, the Pennsylvania Supreme Court decided that the losing bidder of the slots licenses in Pittsburgh does not have to put up any bond money to cover any profits that will be lost during the slots license appeal filed by the losing bidders.
Previously, the State Gaming Control Board filed a petition before the Supreme Court that would require the losing slots license bidder to post an $84.4 million in bond money to cover any profits that Pennsylvania would lose during the 6 month wait for the slots license appeal filed by the losing bidders.
One of the winning slots license bidders, the Majestic Star Casino, owned by Don Barden, also asked the Supreme Court for a cash bond amounting to $68 million to cover the profits that they will lose on the delay of their opening due to the 6 month wait on the slots license appeal, but the Supreme Court also rejected that.
The Pennsylvania Gaming Board awarded the license to play slots to the Majestic Star Casino back in December, but losing slot bidders, the Isle of Capri Casino in St. Louis and the Forest City Enterprises from Cleveland, appealed the decision.
The Majestic Star Casino is planning to open in the summer of 2008, but it has been pushed back because of the ongoing appeal.