Court Backs Majestic Star For Pittsburgh Casino LicensePOSTED: 3:27 pm EDT July 18,
2007 HARRISBURG, Pa. -- A Detroit-based developer can keep the license he won from state regulators to build Pittsburgh's only slot-machine casino, the state's highest court ruled Wednesday. The Supreme Court rejected two separate challenges, meaning Don H. Barden, who owns casinos in four other states, can build the Majestic Star Casino on Pittsburgh's North Shore. "I feel both overjoyed and vindicated by the Supreme Court's decision," Barden said in a statement. "While it's taken a little longer to get to this point than we had anticipated, we're grateful to the court for moving with such urgency and helping to clear the way for Pittsburgh's first casino." The groups Barden beat out -- St. Louis-based casino operator Isle of Capri Casinos Inc. and Cleveland-based developer Forest City Enterprises Inc. -- both had appealed to the state Supreme Court. They claimed, among other things, that Barden's other casinos are losing money in profitable gambling markets, making him a financially unworthy candidate.Isle of Capri, if awarded the license, was looking at the Hill District as a site for its casino plans. Isle also offered to fully fund construction of a new arena for the Penguins as part of its proposal.Forest City Enterprises Inc. planned to build their casino in Station Square, had they won the license. In the court's 6-1 decision, Chief Justice Ralph J. Cappy, who wrote the majority opinion, acknowledged that a Pennsylvania Gaming Control Board review of Barden's finances revealed "some less than optimum facets." However, Cappy pointed out that Barden's ability to borrow large sums of money indicates that investment banks believe he is financially viable and undercuts the argument that the gaming board should have deemed Barden to be a financial risk. The investment banks, Cappy noted, are "neutral entities motivated wholly by their own financial self-interest." Three justices wrote concurring opinions, while Justice Ronald D. Castille dissented. The Supreme Court justices have now turned away all eight challenges to the slot machines licenses awarded on Dec. 20 by the gaming board. No other appeals can be filed to the 11 licenses the board has awarded. "I'm pretty happy about this," gaming board chairman Tad Decker said in an interview. "They're done. It's good news. Now we have to go about the business of seeing them get started." Building the Majestic Star still faces additional difficulties. A separate challenge is pending in the state Supreme Court to the city's planning approval of Barden's casino. The challenge was filed by the owners of the Pittsburgh Steelers and Pittsburgh Pirates, which have complained about traffic congestion near the two stadiums and an entertainment complex they hope to build on the North Shore. Barden is the controlling owner, but has set aside 19 percent of his enterprise for local partners, including soul singer Smokey Robinson and former Pittsburgh Steelers player Andy Russell.
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