Gov, Ed Rendell is questioned by the Patriot News Charlie Thompson on a report published by the Tribune-Review that a grand jury is investigating the awarding of casino licenses.

From the Trib__ Rendell revises gaming claim By Brad Bumsted

STATE CAPITOL REPORTER Friday, November 20, 2009

HARRISBURG -- Gov. Ed Rendell on Thursday backed off his claim the FBI and U.S. Attorney's Office investigated the state gambling board's award of slot licenses in 2006 and found nothing.

His spokesman Gary Tuma said he needed to clarify Rendell's remarks, adding the governor was "not aware of any specific investigation" and only meant "law enforcement agencies kept an eye out" as the Pennsylvania Gaming Control Board awarded 11 slot licenses almost three years ago.

Rendell made the comments during a news conference Wednesday when asked about a Tribune-Review report that a state grand jury is investigating the award of casino licenses. Doug Harbach, a spokesman for the board, had said the agency gave Attorney General Tom Corbett's office documents and fully cooperated with investigators.

Rendell, a major booster of the slots bill to produce revenue for property tax cuts, staunchly defended the agency. He appoints three of its board's seven members.

"That (license award) has been looked at by every investigative agency in the United States of America," Rendell said. "This grand jury should get in line, because it's been looked at by the FBI and U.S. Attorney's offices and everybody under the sun. There was not any undue political influence; there was not any political influence. This has been investigated."

Rendell said gambling regulators awarded licenses "based on the quality of the applications."

Asked how Rendell knew about such investigations and whether anyone in his administration was subpoenaed, Tuma said yesterday that Rendell "didn't mean to suggest he was aware of any specific investigation." Tuma said Rendell only meant that "prosecuting agencies have paid attention all along."

Rendell is not aware of anyone being subpoenaed, Tuma said.

Kevin Harley, a spokesman for Corbett, said he could "neither confirm nor deny" the existence of an investigation.

The grand jury is looking at the award of licenses for Pittsburgh's casino to Detroit businessman Don Barden's PITG Gaming, no longer its majority owner; the Mt. Airy Casino project by Scranton businessman Louis DeNaples; MTR Gaming's Presque Isle Downs and Casino near Erie; and two Philadelphia casinos.

According to officials inside and outside the gambling agency, the investigation focuses on the award of licenses, not necessarily the applicants. The Rivers Casino in Pittsburgh, which opened in August, now is owned by an investment group headed by Chicago billionaire Neil Bluhm.

"I had never had any contact with (board members) on any license," Rendell said during the news conference.