East Chicago Casino Deal Could Violate Gambling Law
Part of a local development agreement that has steered millions of dollars from an East Chicago casino to a private company violated regulations and the intent of state law, the Indiana Gaming Commission ruled Thursday. The commission said continued payments to East Chicago Second Century Inc., which has received more than $16 million from casino operators since 1997, would perpetuate inadequate economic development in the Lake County city and undermine the integrity of the gambling industry in Indiana.
Three separate casino companies have made payments to Second Century, two nonprofit foundations and the city of East Chicago under an agreement struck more than a decade ago. Second City was to use its annual proceeds to focus on economic development efforts in the city along Lake Michigan, including housing and retail construction. But an investigation by the state attorney general's office suggested that the money should have paid for more economic development activities.
The review also said the agreement may violate industry integrity because it directs money intended for public benefit to a private company that has used its for-profit status to resist public oversight of its activities. The attorney general's report also said principals in Second Century and the administration of former longtime Mayor Robert Pastrick may have made misleading representations to the Gaming Commission in obtaining the original agreement.
June 9, 2006
Posted By Hector Rodriquez
Staff Editor, CasinoGamblingWeb.com
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