Foxwoods investor demands that Pa. return 100G fine

A local casino investor fined $100,000 in 2006 for violating a ban on political contributions wants a refund now that the state Supreme Court has overturned that ban.

Developer Peter DePaul also wants 6 percent interest on top of the $100,000 refund, according to his attorney, Dick Sprague.

"It just seems to be common sense," Sprague said. "If he was fined under a law that was declared unconstitutional, that law had no right to be enacted. He's entitled to get his money back."

Doug Harbach, a state Gaming Control Board spokesman, confirmed that Sprague submitted a letter last week seeking a refund.

Sprague said he would sue the state if the refund is not forthcoming. DePaul's fine, assessed by the Gaming Control Board, went to the state's general fund.

The board fined DePaul in December 2006, two weeks before it awarded one of two casino licenses in the city to the group of investors he is part of, known as Philadelphia Entertainment & Development Partners.

That group, which was also fined $100,000, is partnered with the Foxwoods Development Co. Known commonly as Foxwoods, they seek to open a casino in the former Strawbridge & Clothier department store at 8th and Market streets.

A Foxwoods spokeswoman said yesterday that the partnership intends to ask for a refund as well.

The 2004 state law legalizing slot-machine gambling banned political contributions from investors who applied for and won casino licenses.

DePaul, who lives in Blue Bell, made 21 political contributions for a combined $31,750 in 2006 before realizing he had violated that prohibition. He then asked the recipients for refunds and told the Gaming Control Board about the issue.

DePaul filed a legal challenge to the ban in November 2007.

The state Supreme Court heard arguments on that lawsuit in May 2008 and ruled on April 30 that the ban was unconstitutional because it too broadly restricted political contributions.

DePaul withdrew as an investor in the city's other casino project, SugarHouse in Fishtown, in November 2006, while the Gaming Control Board considered what action to take on his political contributions.

Sprague is also a SugarHouse investor. Sprague said he did not ask the Gaming Control Board to refund the $100,000 fine paid by the local investors in Foxwoods.

"Foxwoods is a competitor of mine," Sprague said with a laugh. *