HARRISBURG -- The state Gaming Control Board will decide next week whether to jump in and try to settle a major funding dispute between the city-Allegheny County Sports & Exhibition Authority and the Rivers Casino.

Lawyers for the authority and the casino appeared at a lengthy hearing before the board yesterday, disagreeing over the date when yearly payments of $7.5 million to the SEA must begin. The payments are earmarked for debt service on the new Consol Energy Arena under construction in the Uptown neighborhood.

The SEA argued that the 30 years of annual payments should start by Oct. 1. Casino officials think they have until 2010 or even 2012 to make the first payment. They said the casino doesn't even open until Aug. 9, which doesn't leave much time to earn enough profits to make a large payment by Oct. 1.

They noted that the casino also has payments to the North Side Leadership Council and toward redevelopment of the Hill District to make.

"Both sides should go back to the bargaining table and do their darnedest to get this thing resolved," said gaming board member Sanford Rivers of Pittsburgh. "It disappoints me that we've taken two hours today to discuss this. Allegheny County and the city of Pittsburgh need the revenue from that casino. The two parties should come up with a satisfactory compromise that both sides can live with."

The board told both sides to report back by Wednesday. If no progress has been made on setting a date for the first $7.5 million payment to the SEA, the board may impose a date, although casino lawyer John Donnelly said he didn't think the board had the authority to do that.

SEA lawyer Robert Graci contended that the board does have authority to impose a solution.

It's possible the matter could end up in court.

The SEA wants the $7.5 million annual payments to begin by Oct. 1 so money can be paid to the investors who bought the bonds being used to finance construction of the new Penguins arena. Such payments to bondholders are to begin this fall, said Mr. Graci.

However, Rivers Casino officials think their deal with the SEA permits the $7.5 million annual payments to start in 2010 or even 2012, Mr. Donnelly told the board. He said the casino isn't trying to get out of its agreement to make 30 years of bond payments; it just wants to start the payments later than Oct. 1.

An agreement on the payments was approved by the gaming board on Aug. 18, 2008, when Holdings Acquisition Co., led by Chicago developer Neil Bluhm, took over the Pittsburgh casino project from developer Don Barden, who couldn't get the necessary financing.

Mr. Graci said the date to start the payments was part of the August 2008 transfer of the slots license from Mr. Barden to Mr. Bluhm's group.

Mr. Donnelly said he didn't think the dispute over the $7.5 million payment would delay the much-anticipated opening of the casino.