The 5 million Lawrence Downs Casino and Racing Resort, the applicant for Pennsylvania’s last remaining Category 1 racetrack-casino license, was rescued last week by a Philadelphia investor who has agreed to take the place of Penn National Gaming as financier and manager of the project.
Last month, Penn National backed out of the Lawrence County racino project, which has gone through several owners and financial backers since its inception as Valley View Downs nearly a decade ago. The operator’s former partner, Philadelphia-based Endeka Entertainment, sued Penn, claiming the operator had signed on to the project with an intention to cause its failure, to protect revenues of its nearby Ohio racino.
The departure of Penn—the operator itself sued to seek a court judgment reaffirming its right to back out—was seen by some as the final nail in the troubled project’s coffin, as it would miss this month’s deadline for detailed project and financing plans to be submitted to the Pennsylvania Gaming Control Board. However, last week, the gaming board granted a six-month extension of that deadline after Endeka’s investors convinced another prominent Philadelphia businessman to replace Penn as the partner.
Joseph Procacci, the 87-year-old produce magnate known as Philadelphia’s “Tomato King,” reportedly agreed to rescue the project. Procacci was one of the failed applicants for the second Philadelphia city casino license, his Casino Revolution project beat out by Philadelphia Live! near the city’s stadium complex.
Procacci and his partner in Casino Revolution, Merit Management Group, will be responsible for financing, building and managing the new racino. Procacci will take Penn’s place as general partner, responsible for securing financing. Merit Management will develop the casino and racetrack and manage it after it opens.
Penn National’s $50 million bond sale was released by the gaming board. Procacci will replace it with a bond of his own, and Endeka has until November 20 to submit final financing and construction plans.
