The Rivers Casino will ante up its share of funding for the new Penguins arena in two installments each year under a deal approved yesterday following months of dispute.

Under the agreement reached with the city-Allegheny County Sports & Exhibition Authority, the casino's $7.5 million annual payment will be split into two parts for 29 of the next 30 years, one due Oct. 1 and another due April 1.

SEA board members approved the deal yesterday in the most unorthodox fashion -- without any of them being physically present for the vote. Two members voted by cell phone and two others by conference call.

The agreement ends months of dispute between the two sides over the timing of the payments, which the casino agreed to make as a condition of its license.

As the dispute dragged on, the Pennsylvania Gaming Control Board last month threatened to fine the casino for failing to make the first payment, which was due Oct. 25. A day later, Rivers officials made a $2.35 million payment as a "gesture of good faith."

Greg Carlin, the Rivers chief executive officer, said the casino was "very happy" to conclude the negotiations. He said there was never any intent to avoid the payment. The threatened fines, he insisted, did not play a part in ultimately reaching a deal.

State Sen. Sean Logan, an SEA board member, noted that if the Rivers had not paid up, taxpayers would have been on the hook since the commonwealth guaranteed the bond payments for the arena.

Mr. Logan, D-Monroeville, had inserted an amendment into legislation legalizing table games that would have denied Rivers Casino a license if it had not made the first payment and reached an agreement on future ones.

While that language is now moot, Mr. Logan still intends to keep provisions in the bill that call for sanctions against the casino or a license suspension if it breaks the agreement approved yesterday.

"I think it needs to be in there, and I'm relatively certain that, at the end of the day, that's an added protection for taxpayers," he said.

As part of negotiations, Rivers officials had pressed for language that would have allowed for a reduction in the payment if the state increased the 55 percent tax on slots revenues or authorized additional casino licenses in the Pittsburgh area.

It got neither in the final agreement. However, the SEA will send a letter to the gaming control board opposing the issuance of a license for another casino within 60 miles of the Rivers unless the new facility pays a "proportional amount" of the yearly $7.5 million arena payment.

At the same time, the SEA made a point of noting the language would not apply to The Meadows Racetrack and Casino in Washington County, any license awarded for a Lawrence County casino, or a license awarded for a resort casino in the region.

SEA Executive Director Mary Conturo said the letter is recognition that a financially viable Rivers Casino is important to fulfilling the commitments in funding the $321 million arena project.

While the letter is not what the casino sought, Mr. Carlin nonetheless described it as "very helpful," adding the SEA did not have the authority to grant the Rivers' earlier requests for relief.

The $7.5 million payment from the casino was part of the 2007 agreement to build a new arena and keep the Penguins in Pittsburgh.

The deal also includes a $7.5 million annual payment from a state economic development fund backed by slots revenue and $4.3 million a year from the team.

Holdings Acquisition Co. L.P., the Rivers' owner, committed to making the $7.5 million annual payment in taking control of the casino from Detroit businessman Don Barden last year after he failed to secure permanent financing for the project.

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