Majestic Star Casino Acquires New Investors to Continue Construction

On July 14th, 2008, Majestic Star Casino owner Don Barden petitioned the Pennsylvania Gaming Board if he can transfer the control of the project to another partner. Now, some Pennsylvania lawmakers want to revoke the gambling license of the Majestic Star Casino altogether. Pittsburgh Mayor Luke Ravenstahl commented that he has no information regarding the new owners but said that he intends to meet with the members of the Gambling Control Board as soon as possible regarding the matter.

The Legislators from the House and Senate including Republicans like Jane Orie and Mike Turzai and Democrate Jim Ferlo are urging the Pennsylvania Gaming Control Board to cancel the slots license of Don Barden. They added that the project is becoming too complicated because of the financing problems of the Majestic Star Casino.

The legislators commented that they also want the whole process for awarding the slots license be opened to the public. Mayor Ravenstahl said that he does not want to second guess about the new slots bidding proves after his talks with the Pennsylvania Gambling Board.

He said that he is disappointed that they have not been included in the process of selecting the group that will be given the slots license and now they are stuck with the mess. Officials said that the agreement to transfer the majority of the ownership of the Majestic Star Casino could take place anytime.

Don Barden and other investors worked throughout the weekend on an agreement that would hand primary ownership of the project to Chicago Billionaire Neil Bluhm and George Carlin. Barden is stepping down as the primary owner because of financial problems. Barden originally made some changes to the casino plans to keep it within the budget and petitioned the Planning Commission if they could delay some parts of the project like the amphitheater and others.

But the new partners of Don Barden said that the dock and other facilities of the casino no longer need to be set aside and will open with the other parts of the facility at the same time. The Walton Street Capital will invest $120 million in the project in exchange for the seventy-five percent stake on the project.