Pittsburgh’s Casino on Thin Ice

Pittsburgh’s Rivers Casino is on thin ice. Their gross terminal revenues have been woefully under projections and as a result they are having difficulty making their obligated $7.5 million payment for the new hockey arena. This payment was due September 15^th. They have been in negotiations with the arena’s owner, the Sports and Exhibition Authority, to alter this obligation. They have recently come under fire from the State’s Gaming Control Board for being delinquent on the payment of nearly one month.

The Gaming Control Board’s Bureau of Investigation has filed a complaint stating the Rivers has violated a condition of its gaming license by not making the payment by October 1^st. The Gaming Board will look at the complaint and decide whether a fine or other action is warranted. Negotiations with the SEA continue with the possibility of splitting the payment into smaller amounts, but no agreement has yet been reached.

Furthermore the Casino’s problems will only get worse when Allegheny County performs a property assessment on the facility. Once completed the slots parlor could end up paying property taxes of about $12 million. If they are struggling to make a $7.5 million bond payment, coming up with an additional $12 million may plunge them through the ice, unless something dramatic or unexpected happens to enhance their revenue.