Casino threatened by legal challenge

OXFORD - The casino has squeaked out a victory in a statewide vote, but there are still challenges to face, and hurdles to overcome before the project can be considered a reality.

Weeks after initiating a recount statewide, casino opponents have added a legal challenge to the mix, an act which Black Bear Entertainment (BBE) representatives say will not slow the casino's progress.

A release from CasinosNO! says that the group intends to challenge the referendum, which members say constitutes an illegal monopoly.

"We've been contacted by several attorneys who believe there are serious constitutional issues surrounding the Oxford casino legislation," said the release. "These lawyers have told us that the monopoly provisions in the law, which effectively precludes anyone but Black Bear Entertainment from operating a casino in Maine, could not stand up to a legal challenge."

The legislation, as written, requires that any casino operator in Oxford County "owns a facility that is within 10 miles of the proposed casino at which harness racing was conducted pursuant to a license from the State Harness Racing Commission for the 2009 racing year."

Currently, BBE owns the racetrack at the Oxford County Fairgrounds, which is the only racetrack that fits the description laid out in the legislation.

A BBE spokesperson says that they are not worried about the constitutionality of the law.

"BBE is very confident that the legislation will hold up to any challenge," said Mark Robinson, a spokesperson for the casino investment group. "When the legislation was crafted, the constitutionality was something that was looked at very specifically from many different angles."

CasinosNo! representatives said that several lawyers have offered their help, pro-bono, to conduct research and prepare a legal action.

CasinosNo! representative Dennis Bailey said that the legal challenges may threaten BBE's ability to negotiate a contract with a licensed operator, which, if true, would bring the enterprise to a grinding halt.

"The truth is, until they have a casino operator, a partner, who can get licensed by the state, there is no project," said Bailey. "I've been told by sources in the industry that casino companies are only interested in Oxford if it has an exclusive right to a casino in Maine. The proposals in Biddeford and Lewiston, and a legal challenge to the Oxford casino legislation, make that prospect highly doubtful."

The legislation requires the casino's operator to have experience, which has been taken to mean that the operator will be an existing casino management company from out of state.

Robinson said that opposing the casino now is a lost cause.

"These tactics are just delaying the inevitable," he said. "The vote is over. We're not worried about the recount, or the legal challenge. Though these actions are an irritant, its not going to slow down the development of the resort."