Gambling News by Gambling Headquarters

Although youth appears to be in charge at both Allegheny County and Pittsburgh city government levels, the "Old Boys' Network" is alive and well -- along with some poor math skills. Let's revisit some key points related to the awarding of Pittsburgh's slots license: Why did the state award a slots license for $50 million that many gaming experts agreed would fetch between $300 million and $500 million? I have to suspect that $250 million to $450 million would have built a nice arena and left several million for developing the lower Hill District. Because of the political allies that Forest City engaged for its Station Square bid and its ties to our political leaders, neither County Executive Dan Onorato nor Mayor Luke Ravenstahl (who personally favored the Isle of Capri casino proposal) had the wherewithal to support the Capri bid for fear of upsetting their political friends. They also lacked the foresight to strategically negotiate Plan B. While Don Barden's bid and Majestic Star's North Shore location may ultimately appear to be the best plan for the region, does anyone at the county and city understand the time value of money? The sum of $290 million today is worth a whole lot more than $7.5 million a year over 30 years. If Isle of Capri could afford to offer $290 million to build an arena, did anyone think that asking the other two casino companies for $7.5 million a year over 30 years might be too low? Now that the license has been awarded, Barden is under no pressure to increase his contribution. Maybe we should have asked before the license was awarded? Now Dan and Luke are upset that the Pens will not return their phone calls. THEY are willing to negotiate. Negotiate with whose money? If the original intent was to use slots money to reduce property taxes, I am glad to hear that my relief is now being reduced because our visionary leaders cannot add.