Resorts Casino's Funding on Hold

As reported by the Gary Post-Tribune: "City officials were all set to start spending Resorts Casino's money on economic development after the state Gaming Commission voided a controversial agreement between the riverboat and a private development agency.

"They should have known things wouldn't go so smoothly.

"The casino's parent company, RIH Acquisitions IN, announced Thursday it would begin placing in escrow the .75 percent of Resorts' adjusted gross annual revenue that has been going to the politically connected Second Century foundation for the past decade.

"In a notice filed in Marion Superior Court, Resorts attorney Ronald Gifford argued the rightful recipient of the funds is still in dispute.

"Second Century and the City of East Chicago both have laid claim to the revenue, leaving Resorts reluctant to pay either for the time being, Gifford said.

"Resorts is preparing an appeal of the Gaming Commission's June 8 decision, Gifford said. The casino will therefore place the revenues — roughly $2 million annually — in an interest-bearing account until all litigation is complete.

"…Gov. Mitch Daniels has been a strong critic of the agreement brokered between the casino and Second Century while Robert Pastrick was East Chicago mayor…"

2006-06-16