Pocono Manor Investors, LP v. Pennsylvania Gaming Control Board

927 A.2d 209, 592 Pa. 625, 2007 Pa. LEXIS 1418
CourtSupreme Court of Pennsylvania
DecidedJuly 12, 2007
Docket30 MM 2007
StatusPublished
Cited by39 cases

This text of 927 A.2d 209 (Pocono Manor Investors, LP v. Pennsylvania Gaming Control Board) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pocono Manor Investors, LP v. Pennsylvania Gaming Control Board, 927 A.2d 209, 592 Pa. 625, 2007 Pa. LEXIS 1418 (Pa. 2007).

Opinion

*632 OPINION

Chief Justice CAPPY.

This case involves a challenge to the adjudication and order of the Pennsylvania Gaming Control Board (hereafter “Board”) dated February 1, 2007, in the matters of the applications for Category 2 slot machine licenses in a revenue — or tourism-enhanced location, 4 Pa.C.S. § 1304(a). Specifically, Petitioner Pocono Manor Investors challenges the Board’s decision approving a Category 2 license to Intervenor Mount Airy # 1. For the reasons stated herein, we affirm the Board’s determination.

In July 2004, the Pennsylvania Legislature enacted the Pennsylvania Race Horse Development Act (“Act”), 4 Pa.C.S. § 1101 et seq. Under the Act, the Legislature provided for legalized slot machine gaming at a limited number of licensed facilities throughout the Commonwealth. 4 Pa.C.S. § 1102. The Act established the Board and gave it the “general and sole regulatory authority over the conduct of gaming or related activities as described in this part.” 4 Pa.C.S. §§ 1201(a), 1202(a)(1). The Board is specifically empowered and obligated under the Act “to issue, approve, renew, revoke, suspend, condition or deny [the] issuance or renewal of slot machine licenses[,]” at its discretion. 4 Pa.C.S. § 1202(b)(12). The Legislature also created a Bureau of Investigations and Enforcement (“BIE”) within the Board, but which “shall be independent of the board in matters relating to the enforcement of this part.” 4 Pa.C.S. § 1517(a). The duties of the BIE include investigating and reviewing all applicants and applications for a license, permit, or registration. 4 Pa.C.S. § 1517(a.l)(2), (3).

Three categories of slot machines are authorized under the Act. 4 Pa.C.S. § 1301. A Category 1 license authorizes the placement and operation of slot machines at existing horse racing tracks; a Category 2 license authorizes the placement and operation of slot machines in stand-alone facilities; and a Category 3 license authorizes the placement and operation of slot machines in resort hotels. 4 Pa.C.S. §§ 1302-1305. *633 Within Category 2 licenses, the Board is authorized to award two facilities in a city of the first class, one facility in a city of the second class, and the remaining two facilities in a revenue- or tourism-enhanced location. 4 Pa.C.S. § 1304(a)(1). The Act further provides that Category 2 Licenses for revenue — or tourism-enhanced location cannot be given to two entities within 20 linear miles of each other or another Category 2 facility. 4 Pa.C.S. § 1304(b)(1).

The instant case involves the Board’s approval of two Category 2 licenses to facilities in a revenue — or tourism-enhanced location. The applications within this subcategory were to be submitted to the Board by December 28, 2005. The Board then gave the applicants a “deemed completion date” of November 14, 2006, the date by which proposals were to be finalized. As of December of 2006, the Board had five applications pending before it under this subcategory. 1 The five applicants were Crossroads Gaming Resort & Spa, Mount Airy # 1 (hereafter “Mount Airy”), Pocono Manor Investors (hereafter “Pocono”), Sands Bethworks Gaming, and Tropicana Pennsylvania. After receiving the applications, the Board engaged in extensive review and investigation of the five applicants through the BIE and Bureau of Corporate Compliance and Internal Controls. During the course of its investigations, the bureaus submitted various reports to the Board detailing their findings as to each applicant, including the ownership structure of the proposed casinos, financial suitability of the applicant, the impact on the local areas, the location and zoning status of the facility, a review of key employee qualifiers, and the diversity plan. See, e.g., R. 579a. The Board also held public input hearings related to the proposed facilities as well as permitted a public comment period. Consistent with its mandate, the BIE also conducted background investigations of the applicants, licensees, principals, key employees, or permittees of the proposed facilities. See 4 Pa.C.S. § 1202(b)(9). The background investigation and suitability *634 report issued by the BIE raised questions concerning the character of the sole owner of Mount Airy, Louis DeNaples. Following the completion of the investigations, the Board conducted public sessions related to the licensing of Mount Airy on December 4-5, 2006. The purpose of the hearings was to provide the applicant with a final opportunity to demonstrate its suitability for the license. The Board also conducted closed executive sessions on December 4-6, 2006 related to the licensing of Mount Airy, at which time matters related to the suitability of Louis DeNaples were heard by the Board.

Following a review of the relevant law, the testimony and materials submitted to it, the public hearings, oral argument by the applicants, and closed executive sessions, the Board approved the Category 2 license applications for a revenue— or tourism-enhanced location of Sands Bethworks Gaming and Mount Airy on December 20, 2006 at an open public meeting. Subsequently, the Board filed an order approving the licenses as well as a published adjudication supporting its decision on February 1, 2007. In the published adjudication, the Board reiterated the relevant law that it used in making its determination. See Adjudication at 2-4; see also Public Hearing, 12/20/2006, at 33 (listing the relevant statutory provisions of the Act). The Board also explained that each Board member conducted a comprehensive evaluation of all information obtained throughout the entire licensing and investigative process and contained in the evidentiary record. Adjudication at 7; see also Public Hearing, 12/20/2006, at 25. The Board reviewed the process it followed in making its decision, including making requests for information from a number of law enforcement agencies, conducting database searches, conducting personal interviews, establishing a Financial Suitability Task Force, hiring an independent firm to review traffic study plans submitted by each of the applicants, conducting public input hearings, and providing the public with a public comment period. Adjudication at 8-16.

Following this extensive review, the Board made findings with regard to each applicant and concluded that all “five *635 applicants presented five eligible and suitable proposals for licensure under the Act in a thorough and professional manner. This meant that the Board was required to, and did, consider a multitude of factors related to the applicants and had to arrive at a decision in the exercise of its discretion as to which two of the five suitable applicants should receive the licenses.” Id. at 111; see also Public Hearing, 12/20/2006, 32-33. The Board had previously noted that because of the fact that all five applicants were suitable, they considered which proposals best served the Commonwealth’s and public’s interests in making its decision. Adjudication at 6; see also Public Hearing, 12/20/2006, at 33.

In choosing Mount Airy, the Board offered the following statement:

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Bluebook (online)
927 A.2d 209, 592 Pa. 625, 2007 Pa. LEXIS 1418, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pocono-manor-investors-lp-v-pennsylvania-gaming-control-board-pa-2007.