A beleaguered casino and racetrack project for Lawrence County received yet another lifeline on Wednesday to keep the long-delayed project alive.
The seven members of the Pennsylvania Gaming Control Board voted unanimously to provide a six-month extension to Philadelphia-based investment group Endeka Entertainment to finalize a new partnership deal and financing for Lawrence Downs Casino and Racing Resort, a $225 million development planned outside New Castle in Mahoning Township.
“We don't think we can get this done in less time, and we don't want to fail,” Endeka partner Manuel Stamatakis told the board. “We don't want to come back and ask for another extension. I won't be back.”
Lawrence County was promised a racino in 2004, when state lawmakers legalized casino gambling in Pennsylvania.
The project, once known as Valley View Downs, has been headed by a number of would-be developers. Endeka took over plans in 2012 and announced a partnership with Penn National Gaming in May 2013, when the partners filed an application with the Gaming Control Board for Pennsylvania's last casino license tied to a horse-racing track.
In late March, Penn National said it wanted out of the deal.
The Gaming Control Board on Wednesday unanimously agreed to let Penn National withdraw the casino-license application it filed for Lawrence Downs through its subsidiary, Western PA Gaming. The board also agreed to release the $50 million bond the Berks County-based company provided.
Endeka announced it has reached a tentative partnership with businessman Joseph G. Procacci and the Chicago-based casino company Merit Management Group.
Procacci, 87, is known as the “Tomato King” for being the founder and CEO of Procacci Bros. Sale Corp., the largest supplier of tomatoes on the East Coast.
Plans are for him to serve as the project's primary investor, while Merit — headed by New Castle native Joe Canfora — would manage the racino property. Procacci sought Philadelphia's second casino license to build Casino Revolution in that city's arena district. The $428 million complex would have included a casino with 2,400 slot machines, 80 table games, 25 poker games and a 250-room hotel.
After the Gaming Control Board last year awarded the license to another applicant, Procacci sued.
He agreed to drop the lawsuit as part of being approved to join the Lawrence County venture. He will post $50 million for the Lawrence Downs casino license application by June 1.
Endeka and its new partners have until Nov. 20 to finalize their deal and financing. The board also set a number of other provisions that must be met to keep the Lawrence Downs project alive, including earlier deadlines for background applications and detailed monthly progress reports to be provided.
The additional time and patience of the Gaming Control Board could pay huge dividends when the casino and one-mile harness track is built, said Dan Vogler, chairman of Lawrence County board of commissioners.
“The concept of a harness racetrack and casino in Lawrence County has existed for a long time,” Vogler said. “To say that people's patience has been put to the test is an understatement.”
Jason Cato is a staff writer for Trib Total Media. He can be reached at 412-320-7936 or jcato@tribweb.com.
