HARRISBURG -- The financial prospects for a proposed Lawrence County racetrack/casino seem to keep getting worse, but developers say they intend to follow through on the project.

Last fall, an Indianapolis gambling company Centaur LLC put the proposed Valley View Downs into federal bankruptcy law protection to protect from creditors the $50 million it had set aside to pay for a Pennsylvania slots license. Then a week ago, Centaur added its Indiana racetrack operations and its Colorado casino to protection under federal law.

While the term "bankruptcy" may sound negative to many people, Centaur officials maintain that move is actually a positive one and should help the proposed $425 million project west of New Castle to eventually happen, although no one can say when.

Centaur is going through "a corporate restructuring, but we remain fully committed to the project," spokeswoman Susan Kilkenny said last week. The financial restructuring "will help clear the path to make the project a reality."

The proposed racetrack/casino "is a great project and I am excited about the steps we are taking,'' said Chief Financial Officer Kurt Wilson.

But financing and other problems continue to dog the project. Centaur already has gotten one extension from the state Harness Racing Commission to begin live racing at the track, which is to be built at a 250-acre, greenfield site along Route 422 near the Ohio line.

The current deadline from the three-member harness panel is September. But there are serious doubts as to whether that can be met, since most racing officials think it will take more than six months to build a racetrack.

Mr. Wilson didn't want to speculate on a new timetable for the project, but said, "We may seek an extension" from the Harness Commission. He added, "It's premature to speculate on the timing until we present our plans to the regulators."

Harness panel spokesman Justin Fleming said last week that the panel has gotten no request for another extension and the September deadline is still in place.

"The commission is still hopeful that racing can take place at that site," he said. So are state Rep. Chris Sainato, D-Lawrence, and Lawrence County Commissioner Dan Vogler, who urgently want the hundreds of jobs the facility would bring.

Mr. Vogler drives to Harrisburg for the monthly meetings of the Harness Commission and the state Gaming Control Board to show support for the project.

With Centaur's financing needs still fluid, it's possible additional investors could be added. One possibility is Penn National Corp., which operates a thoroughbred racetrack and Hollywood casino east of Harrisburg and has casinos in other states, including West Virginia.

But because Penn National owns 100 percent of the Harrisburg racetrack/casino under a 2004 state law it could have no more than 33 percent of the Lawrence County track.

Penn National spokesman Eric Schippers said the company doesn't comment "on market speculation or new business opportunities we may or may not be pursuing."

The Valley View Downs project was originally proposed for Beaver County in 2004 and had the strong support of former House Democratic Whip Mike Veon, but his influence waned after he lost re-election in 2006 and then was charged in the Bonusgate investigation.

The Harness Commission approved a compromise in 2007 -- rejecting a proposal by Lawrence County businessman Carmen Shick to build the facility on his own and approving Valley View Downs. But the commission said it should go on a Lawrence County site that Mr. Shick owned.

The Centaur project would be Pennsylvania's fourth and final harness racetrack/casino, along with those at The Meadows in Washington County, Pocono Downs near Wilkes-Barre and a Harrah's facility south of Philadelphia. There also are three thoroughbred track/casinos in Pennsylvania -- Penn National, Presque Isle Downs in Erie and Philadelphia Park in Bucks County.

The future for Centaur's proposed casino is even cloudier than its harness track. Centaur has applied to the state Gaming Control Board for a slots license -- and has set aside the $50 million it will need to pay for it -- but the board still is waiting for more information about Centaur's financing before taking any action.

Of the 14 slots parlors authorized by the state's 2004 casino law, nine are now operating, with a 10th -- SugarHouse in Philadelphia -- set to open this summer.

The Centaur racetrack/casino is likely to be the last one to begin operations, since it will take several years to build if the project receives approval.

The gaming board has recently expressed frustration with the delay in building a second casino in Philadelphia, to be called Foxwoods. The board is trying to maximize revenue from slot machines to provide as much property tax relief as possible for homeowners.

But unlike the Foxwoods situation, the gaming board hasn't said much about the lengthy delay with the Lawrence County project.

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