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This decision means charitable gaming will not resume at the venue, stalling Sanborn’s efforts to divest from the project. The state’s refusal to greenlight the sale comes amid mounting legal issues facing Sanborn, who has been accused of misappropriating $844,000 in Covid-19 aid intended for small businesses.
This marks a critical juncture in a nearly two-year battle between Sanborn and state regulators. The state ordered him to close his casino in December 2022 following the alleged misuse of federal funds during the pandemic.
As part of the order, Sanborn was given limited time to find a buyer for the business, with deadlines that have since been extended several times. But with the Attorney General’s latest decision, that deadline may soon close without resolution.
Sanborn’s legal team argues that the state is attempting to obstruct the sale, discouraging potential buyers from stepping in. At an 8 November hearing, Sanborn’s attorneys suggested that while there are no public allegations against the buyer, the state’s concerns about the transaction have dissuaded multiple parties from expressing interest in purchasing the casino.
Attorney Adam Katz, representing Sanborn, contended that the state’s actions appear aimed at preventing his client from selling rather than addressing any specific concerns about the buyer’s suitability. “The state is manipulating this case to keep Mr. Sanborn from a fair sale,” Katz said.
Compounding Sanborn’s struggles are felony theft charges filed against him and his casino, adding further hurdles to his plans to exit the business. Both Sanborn’s attorneys and the Attorney General’s Office declined to provide details regarding the specifics of these charges, and the licensing deliberations remain confidential.
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