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Rival casino investors sue to thwart Philly casino

Marc Levy, Associated Press

HARRISBURG, Pa. (AP) -- Minority investors in Philadelphia's Sugarhouse Casino are trying to stop Pennsylvania gambling regulators from licensing a second casino in the city.

The minority partnership group, led by Philadelphia lawyer Richard Sprague and auto dealer Robert Potamkin, argues the board doesn't have the authority to award a license that it previously revoked from the failed Foxwoods casino project in Philadelphia.

The lawsuit was filed Monday in Commonwealth Court.

Sugarhouse's majority partners didn't join the lawsuit. The Pennsylvania Gaming Control Board, which regulates the state's 12 casinos, says it'll ask a judge to dismiss the lawsuit and that it believes it has the power to reissue the license.

The board is reviewing six applications for the second Philadelphia license and expects to make a decision early next year.