HARRISBURG -- The state gaming law survived a constitutional challenge yesterday when the state Supreme Court ruled that plaintiff Charles Betters had no standing in the case.
Mr. Betters, a Beaver County developer, had planned to apply for a casino license for a proposed Hays development called Pittsburgh Palisades Park, but backed out of the license competition Monday.
Even if he had become an applicant, he would not have had standing, the Supreme Court ruled yesterday.
"Simply because petitioners may seek a gaming license does not establish that they have a direct, substantial and immediate interest in the outcome of the litigation," the court ruled.
Mr. Betters had challenged a provision of the gaming law and asked for an injunction on awarding casino licenses. The provision requires the state to return license fees to casino operators if the Legislature ever changes the composition or authority of the Pennsylvania Gaming Control Board.
License fees are one-time costs, ranging from $5 million for resort casinos to $50 million for racetrack and stand-alone casinos. Under the law, those fees would be refunded in their entirety if the gaming board is changed within five years of license issuance. After five years, refunds would be pro-rated.
Mr. Betters and Palisades Park did not prove the legislation would harm them even if they had been awarded a gaming license, Chief Justice Ralph J. Cappy wrote for the court.
"Rather than disadvantaging [them] it would appear that the legislation at issue would only benefit them ... in that they would receive their fee in return for any future change in legislation regarding the gaming board," he wrote.
Lawmakers who wrote the gaming law have said the stipulation provides stability in a new industry that the state is relying on to generate $1 billion in property tax relief.
Mr. Betters could not be reached for comment yesterday.
Justice Thomas Saylor dissented from the opinion. Justices Russell M. Nigro and Sandra Schultz Newman did not participate.
The opinion came a day after more than 25 applicants filed literally tons of documents, which the gaming board will wade through to determine who will get 14 licenses for slot machine casinos.
Still in the running for the one standalone license set aside for Pittsburgh are Forest City Enterprises' proposed Station Square casino; the Pittsburgh Penguins and Isle of Capri proposal for an Uptown casino; Alco Parking owner Merrill Stabile's on the North Shore near PNC Park; and Detroit businessman Don Barden's on the North Side between the Carnegie Science Center and West End Bridge.
