Market East Assoc. v. PA Gaming Control Bd.
SugarHouse HSP Gaming ("SugarHouse"), the holder of a Category 2 slot machine license for a casino it operated in Philadelphia, and Market East Associates, L.P. ("Market East"), an unsuccessful applicant for the Category 2 license awarded to Stadium Casino, LLC (“Stadium”), both filed petitions for review ofa Supplemental Adjudication issued by the Pennsylvania Gaming Control Board, in which the Board awarded the last remaining Category 2 license. After careful consideration, the Supreme Court dismissed SugarHouse's petition for review, finding it was not entitled to intervene in the proceedings on remand. In Market East's petition for review, the Supreme Court affirmed the Board's determination that Watche Manoukian, an individual who is an affiliate of Stadium, was not eligible to apply for a Category 1 slot machine license at the time of Stadium's application for its Category 2 license, and, thus, that Section 1304(a)(1) of the Gaming Act would not be violated by the issuance of a Category 2 license to Stadium. However, the Court reversed the Board's determination of what constitutes a "financial interest" as that term was used in Section 1330, and defined that term in this opinion. Because the Board admitted that it did not determine the nature of the specific "equity infusion" Manoukian would supply post-licensure to the trust which has an ownership interest in Stadium, the Court could not affirm the Board's conclusion that Manoukian would not be in violation of Section 1330's 33.3% limit on the possession of a financial interest in a Category 2 slot machine licensee by another slot machine licensee. Thus, the Court again remanded this case for further proceedings. View "Market East Assoc. v. PA Gaming Control Bd." on Justia Law