PA Lawmakers Want PNGI Investigated

Six Pennsylvania lawmakers have sent a letter to the state's Attorney General's office requesting a criminal investigation of racetrack owner Penn National Gaming Inc. in regard to its application and pursuit of a gaming license at a planned harness track in Mahoning Township, Pa.

The call for a criminal investigation follows a civil suit in which PNGI is accused of seeking control of the Lawrence Downs gaming license in order to derail the project. The suit alleges PNGI derailed the project in an effort to protect its interest in an Austintown, Ohio, racetrack gaming facility that opened last fall.

Hollywood Casino at Mahoning Valley Race Course is located 25 miles from the Lawrence Downs site in western Pennsylvania.

PNGI vice president of public affairs Eric Schippers said the company did everything it could to advance the Lawrence Downs racino and there was no criminal wrongdoing.

"We are disappointed by the completely baseless allegations by members of the Lawrence County- area legislative delegation," Schippers said. "This is nothing more than a commercial dispute between two private parties." 

In a lawsuit filed in the Common Pleas Court of Lawrence County, Pa., SDSSL Tuxedo filed a civil complaint individually and on behalf of Endeka Entertainment against PNGI and its subsidiary Western Pa Gaming Ventures accusing PNGI of misrepresenting facts, delaying actions, and destroying any chance for the Lawrence County racetrack casino in an effort to protect the company's interest in its Ohio property.

In a letter from Pennsylvania Rep. Chris Sainato and signed by five other state legislators, state attorney general Kathleen Kane is urged to investigate any criminal wrongdoing on the part of PNGI.

"Given the allegations of the (civil) complaint, which are in the nature of actionable fraud and criminal conduct ... if the allegations are true, the citizens of the Commonwealth of Pennsylvania and Lawrence County and surrounding counties would be harmed by such actions in the form of lost tax revenues, economic stimulus and jobs ... we call on you, as the chief law enforcement officer of the Commonwealth of Pennsylvania to promptly investigate this matter," the letter states.

PNGI disputes the allegations in the civil complaint and says nothing criminal took place.

"We fully recognize and regret the disappointment our withdrawal has had on Lawrence County, but to politicize this and raise it to the level of criminal allegations is completely irresponsible," Schippers said. "We take very seriously our obligations as a licensed casino operator, not only in Pennsylvania but in 17 other jurisdictions across North America, and have worked hard to earn our reputation as one of the nation's top regional gaming companies. We will vigorously defend our reputation against these parroted, unsubstantiated, and libelous claims."

In the court filing, the plaintiffs note Endeka Entertainment was awarded in October 2012 a harness racing license by the Pennsylvania Harness Racing Commission. It says on the day Endeka applied for a gaming license—May 31, 2013—PNGI  acquired a 51% interest in Endeka and took over management. The plaintiffs claim PNGI then derailed the project.

In his letter, Sainato, who represents Lawrence County, asked that the attorney general look into possible criminal violations including perjury, false swearing, and unsworn falsification. Those violations are alleged in the civil suit.

PNGI maintains that it was open with its partners and government.

"Our decision to withdraw from the Lawrence County project, which we had the contractual right to do, was based entirely on economic conditions and continued softness in the Western Pennsylvania gaming market," Schippers said. "We have been completely open with our partners, the county, and the state about the multiple financial challenges of this project at every juncture."