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State official expects delay on racino plan
Background checks most likely would have to be done on new lenders.
HILLSVILLE, Pa. — Valley View Downs’ financial problems will almost certainly delay a decision on whether a Category I casino slots license will be awarded for the project.
Doug Harbach, director of communications for the Pennsylvania Gaming Control Board, said Thursday that if new lenders are found for the so-called “racino” project off U.S. 422 here, they would be added to the list of those whose backgrounds must be investigated before any license is awarded. Background investigations of those currently involved in the project have been going on for almost a year.
The amount of time new investigations would take would depend on how complex the financing arrangement is and how many individuals must be investigated, he said.
The exception would be if a lender is found who has already undergone the gaming board’s background investigation, he said.
For now, Harbach said, everything is on hold until Centaur decides its course of action. Although the gaming board meets Sept. 30, he said it will not act on Valley View Downs at that time.
Racino is the term that has been coined to describe the combination racetrack and casino business.
Centaur officials announced Wednesday that they are returning an undisclosed amount of money to lenders that was raised last fall as part of the credit agreement for the proposed harness racing/casino slots facility. They said they would engage an investment bank within two weeks to help them strategize the next move. A Centaur spokesperson said it still plans to pursue the project, which already has obtained a state harness-racing license.
Despite Centaur’s warnings that it could lose its financing for Valley View Downs if it did not obtain a slots license by July 15, the gaming board has refused to be hurried and would not grant Centaur’s request for a conditional license pending a final decision.
The racino has been hailed as an economic boon for the area and greeted with virtually unanimous support by the community.