State Gaming Control Board members may be forced to intervene to resolve a dispute between the Rivers Casino and a local authority over when the North Shore slots venue is to start paying its share of funding for the new arena.

The city-Allegheny County Sports & Exhibition Authority wants the casino to begin making the payments -- $7.5 million a year for 30 years -- starting Sept. 15, little more than a month after the gambling venue's grand opening Aug. 9.

But that's not what the casino's ownership group was told last year, when it was in discussions to rescue the project from near bankruptcy after Detroit businessman Don Barden failed to secure permanent financing, spokesman Dan Fee said.

At the time it was led to believe the payments wouldn't start until at least Sept. 15, 2010, and perhaps not until June 30, 2012, Mr. Fee said.

Casino and SEA officials now are in negotiations in an effort to resolve the issue. At the same time, the gaming board has scheduled a hearing July 15 on the dispute if there's no agreement by then.

The issue is important to Rivers officials because an early payment could affect cash flow during the critical first weeks of the casino's operation.

It must be able to generate enough revenue not only to pay operating expenses and state taxes but to meet the debt repayments associated with the $800 million casino.

One of the concerns last year before Mr. Barden gave up control of the casino was that the slots parlor needed a strong start to meet debt obligations.

At the time, Mr. Barden had no cash equity in the project, a situation that was rectified after the current ownership group led by Chicago billionaire Neil Bluhm took over the casino.

Still, Mr. Fee noted, "We will have just opened. We have to be able to run our business and meet the requirements of our lenders."

As part of talks with the SEA, Mr. Fee said the casino is hoping to move back the date of the first payment until Oct. 25, giving it a bit more cushion.

SEA Executive Director Mary Conturo said the agreement with Mr. Barden and the Rivers Casino "clearly provided that the payments were to start in the fall of 2009."

She said the payments must begin then "to support the financing plan for the arena" but declined further comment. That presumably means they are needed to make debt service payments on the arena bond issue. She declined to say what would happen if the casino payments were pushed into 2010.

"We intend to continue to work toward reaching agreement," she said. "We hope to do that in the very near future."

Mr. Fee said the casino is willing to move up the start of the payments as long as it "receives reasonable relief if the commonwealth increases the gaming tax rate or authorizes additional casino licenses within our competitive market."

In the event of an increase in the 55 percent tax rate on slots revenues, the casino would expect to see a reduction in its $7.5 million annual arena contribution, he said.

"We make a number of decisions based on our ability to operate a world-class entertainment facility," he said. "If, through circumstances beyond our control, that ability is changed, we would hope they would recognize that, work with us."

If the state were to license another casino in Pittsburgh, Rivers officials would expect that entity to share in the obligation to fund the arena, Mr. Fee said. That's because the North Shore casino probably would lose market share with competition.

Regardless of how the negotiations turn out, Mr. Fee said the casino is "fully committed" to funding the arena at $7.5 million a year for 30 years.

The gaming board hopes the casino and the SEA will be able to resolve the dispute before the July 15 hearing, spokesman Doug Harbach said.

Still, state Sen. Jim Ferlo, D-Highland Park, said he was upset the issue over the payment date had yet to be resolved and had risen to the level of the gaming board.

"There shouldn't be any confusion about when the payment needs to be made," he said.

In addition to the casino, the state is contributing $7.5 million a year for 30 years toward the arena through a slots-backed economic development fund. The Penguins' share is slightly more than $4 million a year.