NEW CASTLE, Pa. - The company that partnered with Penn National Gaming to build a $225 million racing and gaming facility in Lawrence County accuses Penn National of pulling out of the deal to protect its racino in Austintown.

Penn National announced on Monday that it intends to withdraw from the proposed Lawrence Downs Casino and Racing Resort project because of what executives said was a soft economy and market saturation.

Penn National operates 26 gaming facilities in the U.S. and Canada, including Hollywood Gaming at Mahoning Valley Race Course in Austintown, which is less than a half hour away from the proposed Lawrence County venue.

Penn National announced in 2013 that it had teamed up with Endeka Entertainment to build the gaming venue at State Route 422 and 551. The facility would include a one mile harness racing track, a casino with 1,000 slot machines, 30 live gaming tables, 10 poker tables, a food court and sports bar. Planners said the project would create 1,200 construction jobs and 600 permanent jobs.

It was believed at the time that Penn National's partnership with Endeka would breathe new life into plans to build a racino in Lawrence County which were first proposed in 2007.

Endeka attorney William Pietragallo issued a statement characterizing Penn National's decision as last minute.

“We are troubled by the motivation behind this eleventh hour decision and it would appear that Penn National Gaming is protecting its $250 million investment in an Ohio casino that is only approximately 20 miles from Lawrence County,” said Pietragallo.

Pietragallo, who says Endeka has been left holding the bag, has filed a lawsuit alleging that Penn National perpetrated a fraud.  Penn National in turn has filed a complaint and request for a declaratory judgment asking a court to reaffirm Penn National's rights regarding withdrawal from the resort project.

Penn National says it has offered to assist with the transition to another potential operator.