The beginning of the end for the Penguins in Pittsburgh?

The Pennsylvania Gaming Control Board has decided against handing a casino license to the Isle of Capri Casinos Inc. (IOC) that would have allowed the company to build a slot machine parlour in a new arena they planned to finance for the Pittsburgh Penguins, according to CBC.ca.

“Obviously, we are very disappointed that the Isle of Capri was not awarded the slots licence,” Penguins CEO Ken Sawyer said in a statement.

The Penguins and IOC have already agreed that if the license was awarded, the company would build a new $290 million arena in downtown Pittsburgh to replace the 45-year-old Mellon Arena, the “oldest arena in the NHL.” The Penguins are in the final year of the lease with the Mellon Arena, and are in dire need to find a new home, preferably subsidized by the state or local government or business interests.

“Had Isle of Capri been selected, it would have ensured the long-term future of the Penguins in Pittsburgh and would have delivered a $1-billion development opportunity to the Lower Hill and Uptown,” Sawyer said.

Last week, the Penguins suffered another blow when Canadian billionaire Jim Balsillie decided against continuing his bid to purchase the hockey club. It is believed that Balsillie balked at the “NHL’s insistence that keeping the team in Pittsburgh be part of the deal.”

A recent glimmer of hope came over the weekend when the owner of Steelback Breweries, Frank D’Angelo, and his billionaire business partner expressed a desire to buy the Penguins. D’Angelo has been quoted as saying that he would “absolutely not” move the team, but it’s unknown how he plans to finance the much needed arena for the Penguins.

In a statement released on NHL.com, Commissioner Gary Bettman says that the future of the Penguins is clouded, and could even see the team relocate out of Pittsburgh.

“The decision by the Gaming Commission was terrible news for the Penguins, their fans and the NHL. The future of this franchise in Pittsburgh is uncertain and the Penguins now will have to explore all other options, including possible relocation. The NHL will support the Penguins in their endeavors.”