Casino heads, Gary officials clash

GARY, Ind. – When casino-owner Don Barden added the Trump Casino to his existing Majestic Star in a November 2005 deal for $253 million, he announced plans to build an entertainment center, a convention space and a hotel along Lake Michigan. He said at the time the buyout would benefit the region because one leader, not two, would advance casino-related decisions.\nGary officials are still waiting.\nBarden blames former Mayor Scott King for stalling access road improvements linked to the expansion plans in the city’s Buffington Harbor discussed two years ago. But he says his relationship with the city has improved since Rudy Clay became mayor last year.\n“We’re getting along fine,” Barden said. “But we still have to find a way to get the infrastructure completed. I think Mayor Clay is beginning to understand the dynamics, now that he has some experience and time on the job. And I think we will work things out.”\nSome, though, are growing impatient. City Councilman Roy Pratt led an unsuccessful campaign to commandeer one of Barden’s casino permits.\n“He’s getting his licenses, but he hasn’t lived up to all the obligations that he needed to do. He gains, but the city of Gary loses with him running the two licenses,” Pratt said. “It’s obvious we’re losing money.”\nThe Indiana Gaming Commission renewed both licenses in June, and it was unmoved by a revocation plea Pratt made at a hearing this month.\nCombined gambling revenues for the two Gary boats have declined 14 percent since Barden bought out Trump. The two casinos generated $70.6 million in admission and wagering taxes in the state fiscal year that ended in June, down from $80.7 million two years earlier.\nAt the same time, Horseshoe Casino, which is building a new $485 million casino in Hammond, increased revenues by 9 percent, paying $152.9 million in state taxes last year. And Blue Chip Casino saw even stronger gains after cutting the ribbon on a new $170 million Michigan City riverboat last year.\nBarden told the Gaming Commission he has hired architects and engineers to revisit Majestic Star’s expansion plans. And in late May or early June, while his license renewals were under review, he promised the commission he would invest $200 million during the next two years.\n“I have every bit of confidence that Mr. Barden’s vision is to have a new vessel there,” said Ernie Yelton, executive director of the Gaming Commission. “The process for him to accomplish that is unfolding very slowly.”\nThe state commission asked Barden to begin submitting quarterly financial reports this month, after reviewing a six-year economic analysis that showed the Gary casinos have failed to keep pace with the industry.\nBarden contends Gary only needs one riverboat license, and this spring he reportedly asked legislators to consider a lucrative deal to relocate one of his licenses.\nState Rep. Charlie Brown, D-Gary, says Barden must make good on his promise to invest in Gary before lawmakers or the public would support such a move. Barden needs to make a written proposal about his plan, Brown said.\n“He’s going to have to show a strong commitment to Gary before there’s going to be any consideration for him moving one of these licenses,” Brown said.