Pennsylvania Gaming Board Asks the Pocono Manor Investors For a Gaming Bond
On March 15, 2007, the state gaming regulators said that they want Casino Developer, Greg Matzel, to place a $58 million bond for the profit losses that the state is expected to suffer if the appeal filed by Mr. Matzel delays the opening of the Mount Airy Resort and Casino by Louis DeNaples.
The Gaming Board has made that request to the state Supreme Court, which will then decide if a bond is required or not. The Pocono Manor Investors, headed by Mr. Matzel have filed an appeal before the Supreme Court in order to change the decision of the Gaming Board to grant the slots license to the Mount Airy Casino.
In their appeal, the Pocono Manor states that the gaming board has failed to review the comparative evidence presented by the 5 slots casino applicants for the 2 available licenses. In the end, Mount Airy and a casino in Bethlehem won the 2 licenses. Matzel is hoping to change the decision so that he can build his Pocono Manor Resort and Casino in the Monroe County, Tobyhanna Township, which is near the Paradise Township where Mr. DeNaples is currently building the Mount Airy Resort and Casino.
The Pocono Manor is just one of the losing casino bidders who are asking to overturn the decision. The Gaming Board is asking gaming bonds from the 4 organizations. Tad Decker, the Chairman of the Gaming Board, said that the money will ensure that the state will not be in the losing end of the deal for any losses in profits if the appeals by the companies delay the opening of the casinos.
A spokesman from the Pocono Manor cannot be reached for a comment at the moment. The $58 million gaming bond was calculated by the gaming board on the estimated amount of profit that the state will lose if the casinos will not be opened for about 6 months.
If Pocono Manor will not succeed in their appeal, Chairman Decker said that the court will then decide what kind of delay the casino has caused and what will be the appropriate amount that Pocono Manor should pay. The Gaming Board also said that the bond will be used as a protection for the state tax payers.