Denial of conditional license for racino is not a fatal blow

While the developers of Valley View Downs, the proposed horse-racing track and casino in Lawrence County, Pa., are disappointed that the Pennsylvania State Gaming Control Board refused to issue a conditional Category 1 slots license, they can find encouragement in the comments of the panel’s chairwoman, Mary DiGiacomo Collins.

Ms. Collins noted that the denial does not have a bearing on the gaming board’s ultimate decision with regard to a permanent license.

The developers, Centaur Inc. of Indiana, can also feel good about the fact that Collins and her colleagues are close to completing background investigations of the principals of Centaur, the parent company of Valley View Downs, and key track employees. Such investigations are a normal part of the licensing process.

Given what’s at stake not only with the harness racing track to be built near U.S. Route 422 and Pa. Route 551 in Mahoning Township — the license for it has already been issued — but with the slots casino, Pennsylvania officials are justified in attempting to ensure that only the right type individuals are involved in state-sanctioned gambling in the state.

That said, we would point out that this project, more than any other in Pennsylvania, has been scrutinized from just about every angle by state officials. That’s because it was originally proposed by Carmen Shick, his brother, Ken, and their sister, Kendra Tabak, grandchildren of well-known area businessman, Carmen Ambrosia.

Point of contention

Ambrosia’s business dealings became a point of contention for the Pennsylvania Racing Commission, which concluded that his ties to organized crime in the Mahoning Valley was justification for rejecting Shick’s original application for a harness racing license.

Shick and his siblings fought back and the Pennsylvania’s highest court ultimately ruled, in effect, that the racing commission had overstepped its bounds when it visited the sins of the grandfather onto the grandchildren.

But the court did not order the commission to issue the license to Shick for what was then called the Bedford Downs track. Instead, justices said the developers could reapply.

However, from the various comments from the racing commission, it was clear that Carmen Ambrosia’s business dealings were not going to be quickly forgotten.

Here’s what the panel declared when it rejected the application: “ ... the mere appearance of impropriety reflects negatively upon the industry and the Commonwealth and is grounds for refusal to award a harness license.” An appeals court disagreed, as did the Supreme Court.

Since then, the project has changed. Now, the developer is Centaur, which owns hotels, motels and casinos. The company has purchased 250 acres for $75 million from the Shick family and its partners.

Centaur officials remain committed to moving forward, and local governments are proceeding with a sanitary sewer project that will serve the track and residential areas in Edinburgh.

As we have noted on numerous occasions, gambling is not our idea of economic development. The costs in terms of lower income people getting into financial trouble and the increase in gambling addicts are just too high.

We do acknowledge, however, that jobs will be created by Valley View Downs racing track and casino and that the western Pennsylvania-Eastern Ohio region will benefit.