Architect Strada's rendering of the Majestic Star Casino planned for Pittsburgh's North Shore. Click photo for larger image. More coverage Graphic: Majestic Star rising Analysis: Casino decision a bitter pill for Lemieux Winning bidder Barden gets high marks Local officials face struggle with future of Penguins Casino decision brings relief to Hill District North Side's reaction to casino decision mixed Pa. casino board makes day momentous all over state In Gettysburg, 'power of people' wins in denial of casino Bill Toland's Casino Journal blog, including reader comments

HARRISBURG -- Don Barden got the birthday gift of a lifetime yesterday, beating out two larger and better known competitors for the Pittsburgh casino on a historic day in Pennsylvania when slot machine licenses were approved for five companies and finalized for six racetracks.

Mr. Barden broke down in tears when his company, PITG Gaming LLC, with a casino to be built on the North Shore next to Carnegie Science Center, was awarded the city's lone slots license in a unanimous vote by the Pennsylvania Gaming Control Board.

Seen as an underdog by some, Mr. Barden triumphed over Isle of Capri Casinos Inc., with its well-publicized campaign to fund a new arena for the Penguins, and Forest City Enterprises, which had teamed with gambling industry power Harrah's Entertainment Inc. on a Station Square slots parlor.

"It was just an exhilarating and incredible feeling," Mr. Barden said afterward, adding that his heart "skipped several beats" as the gaming board members voted on the license. He held the hand of his wife, Bella, as the board acted.

The award to Mr. Barden stunned the Penguins and their fans, who flooded blogs and e-mails with complaints, claiming that an alternative arena funding plan would cost taxpayers money, and even surprised Gov. Ed Rendell.

Mr. Barden's victory on his 63rd birthday came on a landmark day when the gaming board also awarded two stand-alone casino licenses in Philadelphia, one in Monroe County in the Poconos and one in Bethlehem, and issued permanent licenses for six racetrack slots parlors, including two that already are up and running.

Bradley C. Bower, Associated Press Don Barden wipes away a tear after hearing the decision. Click photo for larger image.

In a statement, Mr. Rendell said the board's actions moved the state "one significant step closer to providing an historic property tax cut to Pennsylvania homeowners" to be funded by revenues generated by the 11 casinos. He predicted in a conference call with reporters that the state would "blow by" the billion-dollar estimate for property tax relief as a result of slots gambling.

"The whole board did a terrific job," he said.

Mr. Rendell said he was "surprised" by some of the selections, including the choice of Mr. Barden. At the same time, he described Mr. Barden as a "class operator" and said he was told by gaming board Chairman Tad Decker after the vote that PITG Gaming had the best application, the best site and the best access, and that Mr. Barden had done a good job of explaining his proposal.

Mr. Barden's Majestic Star Casino will be the only slots parlor in Pennsylvania owned by an African American. It will be built on a 17-acre site that lies between the science center and the West End Bridge.

At a news conference, a joyous and at times teary-eyed Mr. Barden vowed to have the sleek two-story, glass and steel casino built and open by March 2008, with construction crews working double shifts to get the work done. He will not build a temporary slots parlor.

The casino will open with 3,000 machines, add 500 more in six months, and be expanded to the full 5,000 allowed under the law 18 months after its start.

Mr. Barden said the casino will be "first class, very similar to Las Vegas. We're going to have the best of materials, the best of finishes in terms of wall treatment, ceiling treatment, lighting, carpeting, restaurants, retail shops."

He described it as the "flagship" of his operations, which includes casinos in Indiana, Las Vegas. Mississippi and Colorado.

"I think it's going to mean great things for Pittsburgh," he said. "I think we're going to make the North Shore a better community altogether."

As exhilarating as the decision was for Mr. Barden, it was hugely disappointing for the losing bidders and the Penguins, which had tied the team's hopes for a new arena to Isle of Capri and its pledge to provide $290 million toward the construction.

Those hopes now rest with the alternative Plan B crafted by Mr. Rendell. It requires PITG Gaming, as the winning casino bidder, to put up $7.5 million a year for 30 years to help fund the construction. The team also must contribute $8 million upfront and $4 million a year for 30 years. Another $7 million will come from a slots-backed state economic development fund.

Mr. Barden will meet with Allegheny County Chief Executive Dan Onorato and Pittsburgh Mayor Luke Ravenstahl tomorrow to finalize his Plan B commitment to "get that show on the road."

In a statement, the Penguins said they were "very disappointed" in the gaming board's decision. Isle of Capri spokesman Les McMackin said his firm was "shocked and disappointed" by the loss.

"We believe we had the best plan for the city and the region," he said. "Obviously the commission came to a different conclusion, but we respect their opinion."

Since the gaming board's official order, listing the reasons for giving the license to Mr. Barden, won't be issued for about two weeks, Mr. McMackin said it's too early to predict whether the Isle of Capri will go to court to appeal the decision.

"First we have to know why they chose the applicant they chose," he said.

Once the order is issued, losing bidders will have 30 days to appeal to the state Supreme Court.

Mr. McMackin said he thought the Isle of Capri's offer was the best because "what we were willing to give back to the community was greater than anyone else." The community benefits would have included the arena pledge, plus $350 million in redevelopment of the lower Hill, including new housing where Mellon Arena now stands. Mr. Barden has proposed a similar redevelopment as part of his plan.

Brian Ratner, Forest City executive vice president of East Coast development, couldn't say whether the company would appeal the gaming board's decision.

"It's hard to say," he said. "This just happened. It's hard to know what their rationale was."

Forest City officials had little else to say. A plane was waiting to take the group to New York City, where they were awaiting approval on an even bigger project, a $3 billion plan for a Nets arena, housing and office space in Brooklyn.

Steelers President Art Rooney II said he was "extremely disappointed" in the PITG Gaming award. Both the Steelers and the Pirates, along with Del Monte Foods and Equitable Resources, with offices on the North Shore, had fought the proposed casino.

"It seemed it was a process that was designed to give little weight to local interests and the result is indicative of that," Mr. Rooney said. "We will have to consider all of our options in determining how to respond to this decision."

In issuing formal licenses, Mr. Decker said the gaming board intended to hold all the winners to the promises they made in their bids. For Mr. Barden, that likely will include Plan B, plus $11 million to $12 million in proposed traffic improvements on the North Shore, and perhaps his $350 million proposal to redevelop the lower Hill.

Mr. Barden said he is ready to get moving on the latter plan, and intends to begin meeting with people in the Hill immediately to develop a master plan for the redevelopment. Former Steelers star Jerome Bettis is expected to chair that effort.

"We are going to do everything we said we would do," Mr. Barden said.

Although Mr. Barden was seen as a long shot by some, he quietly built a strong case before the gaming board. The board's own consultant and task force projected that his casino would produce the most revenue for the state, a key element in the award of the license. He also was proposing to redevelop two areas of the city, a bleak stretch of the North Shore and the lower Hill.

Mr. Barden, a successful Detroit businessman and casino operator, said he always thought he would get a fair shake by the gaming board, despite the higher profile Isle of Capri and Forest City proposals.

"They followed the rules strictly down the line based upon the merits. I think that's why we were selected," he said.

The fact that Mr. Barden is African American also may have helped, although neither Mr. Rendell nor Mr. Barden thought that was much of a factor.

Mr. Barden also is a friend to state Rep. H. William DeWeese, the incoming House speaker who had one appointment to the gaming board in Jeffrey Coy.

Mr. DeWeese said he never discussed the award with Mr. Coy, or with any other board member, adding that he had friends among the other Pittsburgh applicants as well. He said the Legislature's desire for diversity potentially could have been a factor in the award to Mr. Barden.

"I think all three proposals were sterling. Any of them would have given great credit to the Golden Triangle," he said.

PITG Gaming already has submitted plans to the city regarding the North Shore site and expects to begin work in earnest on the 17-acre stretch in 60 to 90 days. Mr. Barden predicted that "99 percent" of the people to be employed at the casino will be Pennsylvanians, with first priority given to Pittsburghers.

His proposal includes bars and restaurants on the waterfront and the extension of a riverfront trail to the West End Bridge. Investors in his venture include singer Smokey Robinson and Gladys Bettis, mother of the former Steelers running back.

The license award, given that it was Mr. Barden's birthday, had a storybook feel to it. Mr. Barden said that growing up, one of 13 children, he got only one present for both his birthday and Christmas.

"I'm not complaining today, because I got one gift and it's a great one," he said with a smile.