Mar 30, 2015 2 min read

Penn National Gaming Inc. said Monday that it will withdraw from previously announced plans to be a partner at the proposed Lawrence Downs Casino and Racing Resort project in Lawrence County.

Penn National, which blamed a soft economy and saturation in Pennsylvania’s casino market, said in a press release on its investors website that it has informed the partners of Endeka Entertainment LP of its intent to withdraw from the proposed project.

An application by Endeka for the proposed $225 million integrated racing and gaming facility in Lawrence County has been pending before the Pennsylvania Gaming Control Board since May 2013.

“We are disappointed to be withdrawing from this project,” stated B.J. Fair, chief development officer for Wyomissing-based Penn National. “However, given the continued softness in the economy and the level of market saturation — not just in Western Pennsylvania, but across the commonwealth — we are regrettably unable to justify this investment at the statutorily required spending levels.”

Fair added that while Penn National won’t be going forward with the project, “we have offered to assist with the transition to another potential operator.”

In conjunction with its announcement, Penn National on Monday filed a complaint, including a request for declaratory judgment, in Berks County Court of Common Pleas.

“We are disappointed that our continued open dialogue with the partners in Endeka about the deteriorating market conditions in Lawrence County, and our multiple offers to cooperate fully in transitioning the project to a new operator, have been met only with threats of legal action,” said Fair. “We’re asking the court to reaffirm our rights regarding withdrawal.”

Penn National Gaming owns, operates or has ownership interests in gaming and racing facilities with a focus on slot machine entertainment. As of Dec. 31, the company operated 26 facilities in 16 states as well as in Ontario, Canada.