Caesars Entertainment out of Pennsylvania casino project after license revoked

Pennsylvania gaming authorities revoked the gaming license of an oft-delayed casino project in Philadelphia on Thursday, which ended Caesars Entertainment Corp.’s two-month flirtation with the troubled development.

In October, Caesars — then known as Harrah’s Entertainment — signed a nonbinding agreement with Philadelphia Entertainment and Development Partners to operate a $438 million casino in south Philadelphia. The casino company would have a one-third ownership in the project, which was going to be operated as a Horseshoe-brand casino.

The Pennsylvania Gaming Control Board voted 6-1 to kill the project with regulators saying they were “fed up” after four years of delays.

The project’s local developers plan to appeal the decision, but an attorney for Caesars told the Philadelphia Daily News that the company would no longer have a role in the casino.

Caesars operates the Harrah’s Chester racetrack and casino near Philadelphia, and also has four casinos in Atlantic City.

“Obviously we are disappointed in yesterday’s decision,” Caesars spokeswoman Jacqueline Peterson said.

The Philadelphia casino as originally going to be operated by Foxwoods Development Co., which runs the Foxwoods Casino in Mashantucket, Conn. Foxwoods is still an investor in the project.

Earlier this year, Wynn Resorts Ltd. signed a deal to operate the planned casino but backed out of the project.

According to the Philadelphia Daily News, the gaming regulators focused on three issues:

■ The investors submitted incomplete documents on the Caesars deal.

■ They changed the way charities would benefit from casino profits.

■ The project as now designed is notably different from the project first approved in December 2006.

This was the first time Pennsylvania has revoked a gaming license. Philadelphia has one casino, the SugarHouse, which opened in September.

Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.