The Steel City takes a gamble

PITTSBURGH - Near the point where its two mighty rivers converge, the city once known for steel yesterday took a flier on a new industry: gambling.

The opening of the $780 million Rivers Casino here made Pittsburgh the largest city in Pennsylvania to have a gambling hall and brought the total number of operating casinos statewide to nine. Five more casinos have yet to open, including two in Philadelphia.

"I want to thank all of you here and all of the citizens of Pittsburgh," said Neil Bluhm, the Chicago billionaire developer who took over Rivers Casino a year ago and is also majority owner of the planned SugarHouse Casino for the Philadelphia waterfront.

After Bluhm's brief remarks, confetti rained down and fireworks went off.

The 400,000-square-foot, two-story casino quickly filled after its glass doors were opened to the public at noon. By 2 p.m., Rivers' nine-story parking garage, which can fit 3,800 cars, was nearly filled.

Inside, it was wall-to-wall people. Avid gambler E.K. Stevens, a telecommunications executive from nearby Churchill, was among the first to enter yesterday, and he promptly planted himself before a nickel slot machine.

This casino "is going to be a good one," said Stevens, a Steelers season-ticketholder who also frequents Las Vegas and Florida parlors. "The location is great. They're going to make a lot of money here."

For Bluhm, a developer of hotels and shopping malls, Rivers adds to his growing casino empire. Forbes magazine this year ranked Bluhm No. 205 among the 400 richest Americans, with a net worth of $2.2 billion. Bluhm also owns or manages casinos in Ontario, Canada, and Vicksburg, Miss.

A handful of members of Casino-Free Philadelphia, a casino opposition group, heckled Bluhm during his short speech yesterday - which again drew a sharp contrast between the two cities and their acceptance of casinos.

"Don't come to Philly! Go back to Chicago!" shouted group member Jethro Heiko, who has been a vocal opponent of the siting for the SugarHouse and Foxwoods casinos, the second one planned for Center City. Heiko and his group have said the casinos would harm neighborhoods and lower quality of life.

Later in the day, Heiko confronted Bluhm on the Rivers' casino floor and again urged him not to build a casino on North Delaware Avenue at Shackamaxon Street.

"We will stop you," Heiko told Bluhm, who walked away.

Rivers features a glass facade overlooking the Ohio River, an open, 1,200 seat amphitheater leading to the water, and river trails with for bikers and joggers.

Last night, the amphitheater became the site for a concert by the 1960s R&B group Rare Earth and a fireworks display that showcased the casino's location. City officials here ceded to Rivers one of the most treasured pieces of real estate on the North Shore waterfront.

The casino sits about 1,200 feet from The Pointe, where the Allegheny and the Monongahela Rivers meet to form the Ohio River. Next door is Heinz Field, where the Steelers play football.

For many, the casino is seen as an economic boon for a city and region that have lost population over the last half century.

The U.S. Census Bureau last month ranked Pittsburgh, population 310,037, 60th in the country, just behind New Orleans. Unemployment here rose to 7.7 percent in June, its highest rate in nearly 23 years.

"This [casino] is another piece that's going to lead to and continue Pittsburgh's revival," said Pittsburgh Mayor Luke Ravenstahl, who has been busy readying his city for the G-20 summit next month. Ravenstahl shared the stage yesterday with the casino operators.

Rivers attracted more than 54,000 applicants for the casino's 1,080 jobs, chief operating officer Ed Fasulo said. Among the chosen few was Debbie Green, 51, a clerk at Rivers Gift Shoppe.

Green, of Sharpsburg, Pa., northeast of Pittsburgh, was a former shift manager at a local McDonald's, making $8 an hour without benefits. She said Rivers was paying $9.50 an hour, with full benefits and matching 401(k) contributions.

"I feel absolutely blessed to have such a great job," Green said. "It's a life-changing experience."

Holdings Acquisition Co. L.P., the casino company backed by Bluhm, estimates that the new casino will generate $427.8 million in total slots revenue after its first year. Pittsburgh and Allegheny County stand to receive $10 million to $17 million each year guaranteed as the host municipality and host county, or 4 percent of the casino's annual slots revenue.

Rivers' original owner, Don Barden, filed last June for bankruptcy protection, brought on by the lending crisis and a tough economy. To save the project, Barden entered into a venture with Walton Street Capital L.L.C., of Chicago, the private-equity fund that Bluhm cofounded.

For Barden, who was awarded Pittsburgh's sole slots license in December 2006, yesterday's milestone was bittersweet. He expressed joy over "seeing his dream come true," but disappointment at no longer being the majority owner.

"It's a hurt in my heart," said Barden, who sits on the casino company's three-member board of directors and remains an investor.

Pittsburgh resident Pamela Gamble, 34, an assistant preschool teacher, whose last name might make her lucky, said she was impressed by the casino's layout.

"I love it. I think they did a fabulous job," said Gamble, who wore a bright-red, shimmery dress. "It'll add a little more city life to Pittsburgh - instead of always concentrating on sports - and bring in a lot more tourists from all over. That's a good thing."