Foxwoods group says Harrah's willing to lend $19 million, up from $10 million

In a last-ditch effort to restore the Foxwoods Casino gambling license, Harrah's Entertainment has offered to double the money it is willing to lend the venture, according to a petition released Tuesday by the Pennsylvania Gaming Control Board.

The petition was filed last Friday by the Foxwoods group, Philadelphia Entertainment and Development Partners (PEDP), but kept confidential until a redacted version could be prepared for the public.

The gaming board revoked the Foxwoods license Dec. 16. Commissioners raised concerns about incomplete financial documents and commitments, changes in the charitable nature of the venture, and the scaled-back scope of the project.

In the petition to reconsider the revocation, PEDP said Harrah's Entertainment would be willing to put up $25 million of the $75 million in needed equity. In addition, Harrah's - now doing business as Caesars Entertainment - would lend $19 million if need be, up from an earlier commitment for a bridge loan of $10 million.

Of the original investors in PEDP, two had agreed to contribute $21 million in equity: Comcast-Spectacor chairman Ed Snider and a family charitable trust for the daughter of South Jersey entrepreneur Lewis Katz.

The $75 million in equity would be leveraged to borrow $200 million in debt and loans to finance construction.

PEDP also submitted to the gaming board two commitment letters from banks, stating that the banks could raise the money. The board did not release the letters, but it had been reported that the banks were Citibank and Credit Suisse.

The board could decide to take up the PEDP petition to renew its license based on new information on financing - or ignore it.

As it stands, PEDP has until Jan. 24 to appeal in Commonwealth Court the board's decision to strip the group of its license.

The petition also clarified a charitable pledge to the Mashantucket Pequot tribe, which was going to develop and operate the Foxwoods Casino before it fell on hard times.

Under the Harrah's deal, the new partnership would donate $2.5 million up front to the tribe's museum on its Connecticut reservation. After that, the museum would get $500,000 a year for seven years from gaming revenue.

In revoking the Foxwoods license, commissioners questioned why such a large financial commitment was being made with an out-of-state group when the original intent of the project was to use profits from gaming to fund charities in Philadelphia.

The petition explains that the tribe had invested $34 million in the original project and was previously supposed to own 30 percent of the business.

With the Harrah's takeover, the tribe's share of ownership would plummet to 1.25 percent. The petition states that the commitments to the museum were "as consideration" for those changes.