HARRISBURG, Pa. -- Construction is expected to restart within days on Pittsburgh's $780 million slot machine casino, after state officials approved a rescue plan by new investors late Thursday afternoon.

"If this didn't go ahead, this would be in bankruptcy, tied up for a long period of time," said Neil Bluhm, the new leader of the project. "Instead you're going to have a wonderful casino, a great project on the river, and I'm sure the citizens of Pittsburgh will enjoy it and at the same time create a lot of jobs."

Video: Watch Bob Mayo's Report From Harrisburg

The proposal for the partially built casino on the North Shore was unanimously approved by the seven-member Pennsylvania Gaming Control Board during a four-hour hearing.

Bluhm, a Chicago real-estate billionaire, told the board that contractors will be paid by his newly-formed group, Pittsburgh Gaming Holdings, and work on the stalled project can resume Monday.

Construction stopped July 1 after the original holder of the casino license, Detroit-based businessman Don Barden, defaulted on loans and ran out of money.

Bluhm did not have to go through a competitive bidding process for the license, as Barden did. Near the end of the hearing, Bluhm said he was angered by critics' suggestions that political contributions to Gov. Ed Rendell's campaign gave him the inside track.

"I don't have to do this. I'm not stuck in this deal," Bluhm said. "I'm offended by those allegations, which may be libelous or slanderous."

Greg Carlin is the new CEO of the project, replacing Barden, who will remain a minority partner.

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Barden said he made great personal sacrifices for Bluhm's proposal, to ensure that it will deliver on his promises to help fund Pittsburgh's new arena and development in the city's Hill District and on the North Side.

"I have to ask the question, 'What do I get out of this?' Not much," Barden told the board. "I have a 20 percent interest, yes. But that 20 percent interest is secondary."

Contractors, labor and construction leaders testified that they -- as well as their workers and the city's economy -- could have been devastated if the project had fallen apart.

"If these contractors cannot recoup their money, it is going to change the face of construction in western Pennsylvania, and it won't be to the better," said Rich Stanizzo, of the Building Trade Council.

"They, their families and whatnot would suffer, I think, irreparable damage, as would the city of Pittsburgh and the state of Pennsylvania. It's a frightening thought," said Dan Keating, of Keating Building Corp., the general contractor on the casino job.

Despite requests by state Sens. Jim Ferlo and Jane Orie to re-open the project for bidding, the gaming board decided to move ahead with Bluhm's plan that was already on the table.

"I think if we revoke (the license) or rebid, it will only help a small group of people and would be disastrous for thousands of families for Pittsburgh and for the commonwealth," board member Ken McCabe said.

"Mr. Bluhm, thank you for removing the doom and gloom that hovers over the Pittsburgh casino and its amenities," board member Sanford Rivers said.