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Mini-casino in western Pennsylvania rejected by regulators

  • The Associated Press
In this May 24, 2012 file photo, patrons play the slot machines at Harrah's Casino in Chester, Pa.

 Alex Brandon / AP Photo

In this May 24, 2012 file photo, patrons play the slot machines at Harrah's Casino in Chester, Pa.

(Harrisburg) — Pennsylvania gambling regulators are rejecting a proposed mini-casino near the state’s western border with Ohio after the winning bidder for the license acknowledged that it couldn’t finance the project.

The Pennsylvania Gaming Control Board on Wednesday denied the application by the owners of Mount Airy Casino Resort in the Pocono Mountains.

Mount Airy’s owners submitted a winning bid of nearly $21.2 million for the license last year and picked an undeveloped parcel in Beaver County, close to the Pennsylvania Turnpike. Mount Airy forfeits a quarter of the bid.

Mount Airy officials acknowledged that it lacked the cash to finance the project or secure lending agreements. The mini-casino license was among 10 that state lawmakers authorized for auction to Pennsylvania’s licensed casino owners.

Five licenses were auctioned before the auctions ended.

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