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Tribe's takeover of track approved
Mohegan Indians will buy Pocono site for $280 million
Friday, December 17, 2004

HARRISBURG -- The state Harness Racing Commission put out the welcome mat yesterday for the Mohegan Indian tribe of Connecticut.

The regulatory panel, which is finally back to its full complement of three commissioners, unanimously approved the $280 million sale of the Pocono Downs racetrack to the Mohegan Tribal Gaming Authority, which currently owns the successful Mohegan Sun casino in Uncasville, Conn.

The racetrack, near Wilkes-Barre, was sold by Penn National Gaming Inc., which also owns a thoroughbred racetrack, Penn National Race Course, near Harrisburg.

Both tracks, along with The Meadows in Washington County and Philadelphia Park, plus two other licensed but unbuilt tracks, will be eligible to construct casinos with up to 3,000 slot machines. The casinos aren't expected to open until spring or summer 2006.

Pennsylvania will have 14 new casinos, seven at tracks, five at standalone locations (one in Pittsburgh) and two smaller casinos at resort hotels.

The state's new slot machine law, signed by Gov. Ed Rendell July 5, prohibits any company that owns a casino from having more than a one-third interest in a second gambling facility. Penn National thus had to divest itself of at least two-thirds of Pocono Downs, so it decided to sell the whole thing.

The $280 million sale price includes the harness track and its 400 acres plus five off-track betting facilities, including one in Erie.

William Velardo, chief executive officer of the Mohegan tribal authority, and Robert Soper, a Mohegan official who will be president of the Pocono Downs track and casino, told the commission they are eager to begin operations in Pennsylvania. Pocono Downs will be the tribe's first gaming operation outside Connecticut.

Soper estimated the cost of the Pocono Downs casino at about $175 million. That's in addition to a one-time $50 million license fee that all casino operators will have to pay the state.

Harness commission officials said top officials of the Mohegan gaming group have been investigated by state police and the FBI as part of the pre-sale process and nothing derogatory has been found.

Joining in the vote was the newest commissioner, Richard Bolte, who owns a horse farm near Philadelphia and has raised standardbred horses that run at harness tracks, including The Meadows.

Bolte joins Chairman Roy Wilt, of Crawford County, and Commissioner Edward Rogers, of Cumberland County.

First published on December 17, 2004 at 12:00 am
Harrisburg Bureau Chief Tom Barnes can be reached at tbarnes@post-gazette.com or 1-717-787-4254.