The DOE argued that Luciano's Casino and Ristorante violates the spirit and intent of the Shoreline Management Act, which says the waterfront is for water-oriented businesses only. Regardless of the merits, the state Court of Appeals ruled that the state's challenge came too late. As part of the decision, the DOE was ordered to pay a total of $25,000 in attorney's fees to Luciano's owners.

Luciano's first received city approval for the expansion in January 2001. The DOE has not yet announced whether it will further delay the project by appealing the ruling to state Supreme Court.

The longer it takes to start the expansion, the less likely it is that it will occur at all. Under city law, all minicasinos are scheduled to be outlawed on Jan. 1, 2006.