Parx owner makes first appearance at gaming board
Pennsylvania Gaming Control Board hearing Monday could help determine the fate of Live! Philadelphia, the casino project that has been stalled for two years by Pennsylvania Supreme Court appeals.
Watche "Bob" Manoukian has owned a casino in Pennsylvania for more than a decade, but Monday marked his first appearance in front of the Pennsylvania Gaming Control Board.
Monday's hearing, ordered by the Pennsylvania Supreme Court in a June decision, is supposed to help decide whether Manoukian's "financial interest" in the casino would violate casino ownership restrictions under the state Gaming Act.
The law prevents an individual who owns one casino from owning more than 33.3 percent of another. The same restriction applies to any financial interest in a second casino.
Manoukian, a wealthy businessman based in London and California, defended terms under which he will transfer $34 million to a trust for his three sons that will own a portion of the proposed Live! Philadelphia Casino & Hotel in South Philadelphia. He said he has no financial interest in the trust.
"I have recently signed a binding agreement to fund the trust by outright and irrevocable gifts, and I will do so, I promise," Manoukian told the board.
Manoukian, who has a net worth of $850 million, according to board documents, already owns 85.84 percent of Parx Casino in Bensalem. His company, Greenwood Racing, formed a 50-50 partnership with entities controlled by the Cordish family in Baltimore.
The gaming board picked the joint venture, Stadium Casino L.L.C., to build Philadelphia's second casino in Nov. 2014, but Supreme Court appeals by a losing bidder and by SugarHouse, which wants to block a competitor from coming into the city for as long as possible, have held up the project.
The June Supreme Court decision was the second time the award of the second Philadelphia license to Stadium Casino was sent back to the gaming board for further consideration.
The first time, March 2016, the justice asked the board to consider not just Manoukian's ownership interest, but also his financial interest, as called for in the gaming law. The court was apparently satisfied that Manoukian's ownership did not exceed the limit.
Without holding a hearing, the board decided in June 2016 that Manoukian's financial interest also did not go over the limit.
The Supreme Court, took a broader view of the term financial interest than the board did and ordered it to take another look.
Cyrus Pitre, chief enforcement counsel for the board, peppered Terrence Everett, a Manoukian associate who is president of the entity overseeing the trust for Manoukian's sons, with questions about whether there were any conceivable financial or business relationships between the trust and Manoukian that could lead to a benefit for Manoukian.
"Other than to see happy sons, no," Everett said.
Still, Pitre said he would recommend that investigative staff at the gaming board "be given opportunity and time to review and trace the source of any funds that will be used by Stadium Casino to build the Philadelphia casino project."
Pitre also noted that a violation of the 33.3 percent cap is not disqualifying, that Manoukian would have the opportunity to come into compliance if the proposed ownership structure ultimately does not pass muster.
The various parties now have an opportunity to file briefs. After that, the board will make its decision.