Aztar Buyer Clashed With Casino Regulators
A Kentucky company that is buying Aztar Corp., the gambling outfit trying to build a casino in Allentown, abandoned a plan to buy a riverboat casino in Missouri because company officials feared they would fail a background check. Columbia Sussex Corp., which last week won a bidding war to acquire Aztar for $2.01 billion, was set to buy the bankrupt President Casino in St. Louis for $57 million.
But Columbia walked away from the deal thinking its license application probably would be denied by Missouri gaming regulators. Whether the trouble in Missouri will translate into problems with the Allentown casino bid is unclear. The Pennsylvania Gaming Control Board, which expects to award licenses for seven stand-alone casinos in December, will not comment on pending applications.
And Columbia's acquisition of Aztar still has to be approved by Aztar shareholders, who are expected to vote in coming weeks. But Pennsylvania gaming board members have said they will base their decisions partly on the outcome of background checks of each applicant. The Missouri Gaming Board's investigation into Columbia remains confidential because the company withdrew its casino application, agency spokesman Howard Bailey said. But the investigation could be shared with Pennsylvania gaming regulators if they request it, Bailey said.
May 31, 2006
Posted By Hector Rodriguez
Staff Editor, CasinoGamblingWeb.com
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