Regardless of what happens with the Pittsburgh casino license, the deal to build a new arena and keep the Penguins in town won't be in jeopardy.

Even if the $7.5 million a year for 30 years committed by casino licensee Don Barden evaporated, the arena still would get built, with the state responsible for the shortfall.

"In the unlikely event of a catastrophe, the commonwealth would assume final responsibility," Chuck Ardo, a spokesman for Gov. Ed Rendell, said yesterday.

The $290 million bond issue for the arena likely will carry insurance to cover any potential defaults, although Mr. Ardo stressed that no one is expecting that to happen.

"They are very confident this is going to get done in very much the way the agreement is written," he said.

The arena deal announced this week between the Penguins and state and local leaders is built largely on gambling revenues, with $7.5 million a year coming from Mr. Barden and another $7.5 million a year from a gambling-financed state economic development fund.

The Penguins would add $4.2 million a year.

The decision by the Pennsylvania Gaming Control Board to award the Pittsburgh casino to Mr. Barden is being challenged before the state Supreme Court by the two losing bidders, Forest City Enterprises and Isle of Capri Casinos Inc.

In a letter to Gov. Ed Rendell this week, state Sens. Jane Orie, R-McCandless, and Joseph Scarnati III, R-Jefferson, the president pro tem, said they were concerned about the impact the appeals could have on arena construction and keeping the Penguins in Pittsburgh.

Mr. Ardo said the concerns are unfounded. Both losing bidders in Pittsburgh have committed to funding an arena as part of their proposals. Forest City would provide the same $7.5 million a year pledged by Mr. Barden. Isle of Capri had offered $290 million for the arena, in partnership with the Penguins.

"We consider the possibility [of a funding shortfall] to be remote because there will be a casino operator in Pittsburgh even if the gaming board's decision for some reason is reversed," Mr. Ardo said.

Another factor is that under the arena agreement, Mr. Barden isn't required to make any payments until fall 2009, giving him -- or another casino operator, if the award is overturned -- plenty of time to get up and running and to start generating revenue.

Before the appeals, Mr. Barden had hoped to open the casino in summer 2008.

In their letter, Mr. Scarnati and Ms. Orie said the appeals raise "serious questions as to the financial wherewithal of the successful applicant." It is an apparent reference to the Forest City appeal, which questioned the financial fitness of Mr. Barden's PITG Gaming LLC to hold the casino license.

It contended another of Mr. Barden's companies, Majestic Star Casino LLC, has not performed well financially and has "historic operational problems and historic track records of negative results from operations as its profitability ratios clearly indicate." It also asserted Majestic Star's "leverage ratios, weak asset value and weak capital structure indicate significant vulnerability to default."

Mr. Barden's spokesman, Bob Oltmanns, assailed the allegations yesterday, calling them "false rumors perpetuated by a disgruntled applicant that is now pulling out all the stops" to try to influence the Supreme Court.

"This is a propaganda campaign designed to discredit Mr. Barden," he said.

While Mr. Barden's two Majestic Star casinos suffered a combined revenue drop of 11 percent from December 2005 to December 2006, they are still perceived as profitable.

In November, Lehman Bros. rated Majestic Star notes as "the best long-term buy in the gaming universe" and said the company has "ample liquidity" to run and improve its operations.

Furthermore, PITG Gaming LLC, which holds the Pittsburgh license, is an entirely separate operation, Mr. Oltmanns said. Jefferies & Co. already has provided a $450 million financing commitment for the Pittsburgh casino, enough to cover the entire construction.

During an interview in January, Mr. Barden made the same point, saying the Pittsburgh casino "will be a freestanding project-financed entity," with no connection to his other operations and a full financing commitment.

"As in Las Vegas [with his Fitzgerald's property], PITG Gaming is a separate entity with separate financing. It'll be like Las Vegas, where Majestic Star manages it for a fee. It's not part of the credit package or debt structure" of other operations, he said.

Jane Pedreira, a fixed-income gaming analyst for Lehman Bros., said after the licenses were awarded that financing for PITG and other license winners appeared not to be an issue, because of the projected revenues once they start operations.

"Basically, a lot of companies that won Pennsylvania licenses were able to get bank financing based on the cash flow potential of the operation," Ms. Pedreira said. "It's basically all slots revenue, and slots tend to be sufficiently profitable. Even though it's a high tax rate, slot machines are also the more profitable end of the business."

She said his Majestic Star and Fitzgerald's casinos "do reasonably well despite the markets they're in," with extensive competition. Mr. Barden has attracted quality management talent, she said, to run his casinos after doing well for other operators.

"It just sort of cements the fact that Don Barden is the real thing," Ms. Pedreira said of his getting the license. "For him to be up against Harrah's and Forest City Ratner and still win is a big accomplishment."

While Mr. Barden's Gary, Ind., operations have had a revenue drop since his acquisition of one boat and license from Donald Trump in 2005, she said, it's understandable given more aggressive promotions and expansion by competitors.

Pennsylvania gaming board Chairman Tad Decker said he also is confident of Mr. Barden's financial fitness. The board did an exhaustive study of Mr. Barden's finances before awarding the license and found him to be qualified, he said.

"We think he's clearly financially viable and suitable under the statute. If that's [Forest City's] only basis for appeal, they should withdraw it," he said.