Local investors here said they were stunned by the abrupt decision of Las Vegas gaming mogul Steve Wynn to pull out of a deal to resurrect the Foxwoods Casino project.
The move was surprising because, on April 5, Wynn submitted a design package of color drawings to the state’s Gaming Control Board three weeks ahead of schedule. The Philadelphia Inquirer reported he also had met with Mayor Michael Nutter and declared that the South Philadelphia casino would be “Wynn top to bottom.”
Stephen A. Cozen, a lawyer for the Foxwoods group, said Wynn had given the investors “specific notification” for why he severed discussions. Coxen would not disclose specific details, but said the Foxwoods investors had worked in earnest with Wynn in the last six months to advance a plan to transfer control of the project to Wynn Resorts.
Wynn Resorts announced on April 9 that it had terminated all agreements and negotiations relating to the project.
“We are fascinated by the legalization of full gaming in Pennsylvania and stimulated by the opportunity that it presents for Wynn Resorts, but this particular project did not, in the end, present an opportunity that was appropriate for our company,” said Wynn, in an official statement.
In 2006, the Foxwoods group won one of two licenses for a slots parlor in Philadelphia. The investors included 14 individuals and charitable trusts, and the Mashantucket Pequot tribe of Connecticut, which intended to build and operate a casino in South Philadelphia.
The project faced opposition from City Council and locals, who said they feared congestion. Wynn began talking to the group about taking over the flailing project last fall. Now it is unclear whether investors will be able to keep the project’s gaming license.
