June 6, 2005
Willkie concludes its representation of Rhode Island’s Department of Business Regulation in connection with the investigation and recommendation to the State of Rhode Island whether or not it should permit BLB Investors, a consortium of hotel and gambling interests, to purchase Lincoln Park, a greyhound track and gaming venue.
Willkie recently concluded its representation of Rhode Island’s Department of Business Regulation in connection with the investigation and recommendation to the State of Rhode Island whether or not it should permit BLB Investors, a consortium of hotel and gambling interests, to purchase Lincoln Park, a greyhound track and gaming venue. Willkie conducted its investigation in collaboration with the Rhode Island State Police, the Rhode Island Lottery Commission, the Rhode Island Department of Administration, as well as the Office of the Governor of Rhode Island. Lincoln Park is the State of Rhode Island’s third largest source of State revenue, after the State’s income and sales tax.
Willkie was retained by the State following the federal indictment of Lincoln Park and certain of its senior executives on conspiracy and bribery charges. After conducting an in-depth investigation into the collective background of BLB, which consists of Starwood Capital and Kerzner International and the Waterford Group, two of the original developers of Mohegan Sun, Willkie recommended at a public hearing last week held at the Rhode Island Community College that the transaction be sanctioned. In this report, Willkie told State regulators that it “has uncovered no information that under Rhode Island law or regulations, or under the provisions of other established gaming jurisdictions, would render BLB or its key personnel unsuitable to operate Lincoln Park.” Accepting Willkie’s findings, the hearing officer determined that “BLB meets the honesty, good character, financial resources and experience requirements to obtain this license.” The hearing officer also noted that “Willkie Farr’s use of the highest standard of review further provides for the protection of the public.” The outcome of the hearing clears another hurdle for BLB, which seeks to acquire Lincoln Park for $435 million by June 30 and then expand the gaming venue by 1,750 additional video slot machines, making a total of 4,752. The gaming consortium must still win additional legal and political approvals, including the State Lottery Commission.
Willkie’s role in this matter is unique as it represents a rare instance in which a state regulatory agency has retained a private law firm to conduct an investigation and present at a public hearing on behalf of a State. The Willkie team handling the matter was led by partner Dan Rubino with associates Sean Maloney, Michael Sherman, Erin Heins, Stuart Goldfarb, Elissa Rossi, Kathryn Bodkin, and Evan Reed. Partners Shelley Chapman and Benito Romano also participated on the team.