Barden keeps two Gary licenses for gambling boats

But in a surprise move, the Indiana Gaming Commission asked Majestic Star CEO Don Barden to submit quarterly financial reports, starting Nov. 15.

Chairman William Barrett explained after the meeting that the commission wants to make sure all of its license holders are able to succeed financially in a competitive market.

However, Barrett said he could not recall whether any other license holder had been asked to make the same kind of report.

During the hearing, commissioner Tom Swihart of Valparaiso questioned Barden about his market plan in light of expansions at nearby casinos in Lake and LaPorte counties.

Barden, who lives in Detroit, Mich., repeated his complaint that the city, after 11 years, still hasn't built an access road off of Cline Avenue to Buffington Harbor, forcing him to delay an expansion.

He said he's interested in moving one license either to another part of the city or another part of the state.

Moving a license out of Gary would require a change in state law. Barden lobbied for that change this year, but he got little support.

"Gary's only big enough for one license," Barden said.

Before deliberations began, Gary City Council member Roy Pratt and city attorney Macarthur Drake spoke for five minutes each. Each made one final plea to the commission to rescind one of the licenses.

"I'm here to make sure that we get two developers, so we don't have a monopoly," Pratt said.

City Council strategy

In January, Pratt sent a letter to the Indiana Gaming Commission asking it to consider rescinding one license from Barden so that two developers could operate in Gary. Pratt and former Mayor Thomas Barnes insist that was the original intention of the state's gaming laws.

State lawmakers from Northwest Indiana disagree, though. A letter supporting Barden authored by Sen. Earline Rogers and Reps. Charlie Brown and Vernon Smith, was read into the record, and Smith spoke on Barden's behalf.

"Mr. Barden has been steadfast in supporting Gary," Smith said. "I think that should be rewarded, not punished."

Last week, the City Council approved a resolution putting its full support behind Pratt. At Thursday's hearing, Gaming Commission Executive Director Ernest Yelton said he had a letter from Mayor Rudy Clay announcing that the resolution had been vetoed.

Clay's letter also said the resolution was inappropriate because of ongoing negotiations between the city and Majestic Star.

The mayor was likely referring to deliberations over a 2005 development agreement between the city and the casino. It was signed by former Mayor Scott King, but it wasn't approved by the city's Board of Public Works and Safety.

Clay's attorneys say that voids the agreement.