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Gambling News by Gambling Headquarters

Monday, June 12, 2006

Indiana Casino Deal Tossed Out

 

As reported by the Gary Post-Tribune: "After a state attorney general's report condemned the company, the Indiana Gaming Commission tossed out the deal that gave a politically connected East Chicago firm a share of the city's casino revenue. "It was the first time the commission rejected part of a local agreement between a casino and its host city. "The attorney general's report said Second Century showed only a murky return for the $16 million it had received in casino revenue over the past decade and with no public oversight.

"The company had been written into the city's local agreement with the casino in 1998, under former mayor Robert Pastrick, after Harrah's purchased the license from Showboat. Second Century is run by former state Democratic Party Chairman Michael Pannos and Tom Cappas, a Pastrick confidant.

"Attorney General Steve Carter said the private company repeatedly blocked efforts to turn over financial records or detail the list of the economic development projects purchased with the 0.75 percent of the adjusted gross income it received from the casino. With the report, his office issued a ruling saying the Gaming Commission had the authority to revoke the contract.

".Second Century attorney J. Lee McNeely argued the company has a private agreement and is not subject to public scrutiny."

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