Endeka Sues Penn National Over Racino

Endeka Entertainment has sued Penn National Gaming over Penn’s withdrawal from the agreement to manage a new racino in Lawrence County, Pennsylvania

Endeka Entertainment, the consortium of Philadelphia-area business leaders whose application for a Category 1 racino license in western Pennsylvania’s Lawrence County is before the Pennsylvania Gaming Control Board, has filed suit against Penn National Gaming over Penn’s withdrawal as the casino’s manager.

In the lawsuit, filed in Lawrence County, Endeka alleges that Penn officials misled them, maintaining a public commitment to what is to be called Lawrence Downs Casino and Racing Resort until its withdrawal as casino manager two weeks ago. Penn officials cited the saturated Pennsylvania gaming market as its reason for withdrawing from the project. Endeka officials claim Penn’s primary motivation is to protect the revenues of its own nearby Ohio racino, Mahoning Valley Race Course in Austintown, about 25 miles form the Lawrence County site.

The suit alleges that Penn’s involvement as the potential manager of Lawrence Downs was a scam from the start, meant to protect its Mahoning Valley revenues by pulling out at the last minute, which will likely cause the gaming board to deny Endeka the state’s last Category 1 casino license. According to the filing, Penn “intentionally misrepresented facts, delayed action and destroyed any chance” of the Lawrence County project being approved, depriving county residents of “tax revenue, economic stimulus and jobs.”