Isle of Capri Casinos, Inc. – owner of both Iowa Quad Cities gambling boats – announced last week (2/2) it will put up $25 million to join Tower Investments LLC in a bid for the second gambling license in the city of Philadelphia.
In its filing with Security and Exchange Commission, the Isle said it is putting up the money in the form of a standby letter of credit, "issued for the purposed of securing the Pennsylvania gaming license fee related to the project." If the venture is successful in being selected by the state gaming authority, the $25 million would be converted into a minority investment in the resort and casino venture, called "The Provence."
If the joint venture isn't awarded the license, the letter of credit would be cancelled, according to the filing.
Six groups have applied for the second gambling license in the city. A public hearing on the six proposals will be held February 12. According to the Philadelphia Inquirer, the selection process could take up to a year.
Tower Investment is headed by developer Bart Blatstein. His proposal calls for a $700-million resort/gambling development which would convert three blocks downtown, including the former Philadelphia Inquirer and Daily News building, into a hotel, entertainment, dining and retail complex.
Towers had earlier announced plans to partner with the Hard Rock Resort & Casino International, owned by the Seminole Tribe of Florida, to operate the casino.
The Isle is planning to build a $50-million casino at the Nemacolin Woodlands Resort in Fayette County, Pennsylvania. The 2,000-acre resort draws an estimated 350,000 guests annually.
In the Quad Cities, the Isle is negotiating with the city of Davenport to sell its Rhythm City Casino operation for $46 million ($51 million if the city decides to move the casino to an interstate location). Davenport officials have been unhappy with the lack of new investment in the Rhythm City, the lowest grossing gambling facility in the two-state Quad Cities market.
The new Jumer's Casino in Rock Island, IL is number one in gambling revenues, followed by the Isle of Capri Casino, Bettendorf, also owned by the Isle of Capri Casinos.
