Proponents of a bill that would allow a Gary casino to move to a land-based location lauded the proposal for its economic development potential but opponents say it would “destabilize” the Northwest Indiana’s gaming industry.
The Indiana House of Representatives’ Public Policy Committee heard testimony on the first of two bills that would allow one of Gary’s casinos to move to a site near the Borman Expressway and shift a second gaming license to Terre Haute, allowing the city to redevelop the Buffington Harbor area.
Gary Mayor Karen Freeman-Wilson said every day she hears about potholes, vacant buildings, crime and a need for jobs — and what’s needed to deal with those issues is resources. Freeman-Wilson said the proposed bill would not just create new revenue and economic development opportunities around a new land-based casino, but also from the proposed redevelopment of Buffington Harbor.
Gary “misplaced” its casino operations, Freeman-Wilson said.
“This is not the highest and best use of the land in Buffington Harbor,” Freeman-Wilson said.
Phil Taillon, Hammond Mayor Thomas McDermott Jr.’s chief of staff, said Horseshoe’s operation has resulted in more than $500 million in investment, hundreds of jobs, and millions in revenue for the city. Taillon said allowing Gary to move a casino on land would “destabilize the gaming industry in the Chicagoland market.”
“The state cannot afford to make a misstep with this bill,” Taillon said.
The proposed policy would reward a casino operation that has made little investment and cause “inequitable” and “unfair” changes to the state’s gaming rules, Taillon said.
The Indiana Senate, in February, passed the bill by a 38-11 vote.
Sen. Mark Messmer, R-Jasper, a sponsor of the legislation, said the bill is a “once in a generation opportunity to reset the gaming industry in Indiana.”
The city is eyeing land near the Borman Expressway as a potential site to move the Majestic Star. Last year, Freeman-Wilson pitched the idea that moving that casino would be more beneficial to that business and create new opportunities at Buffington Harbor.
Gary officials also are planning for a potential intermodal shipping and transportation facility in Buffington Harbor that would require the Majestic Star Casino to relocate elsewhere in the city.
The bills, if passed, would allow Spectacle Entertainment, which is poised to buy the Majestic Star, to take the second license and move it to Terre Haute.
County Councilman Charlie Brown, a former state representative, said Gary pioneered the push for the casinos in Indiana, and it is now pushing to allow for the state’s first land-based casino. Brown said moving a casino to a land-based location near the expressway would create economic development opportunities Gary needs.
“If Gary does not succeed, the state does not succeed,” Brown said. “We need to look at this as a statewide project that will be physically located in Gary, Indiana, but it will also be helpful to the state and the region.”
Brown said it’s possible that other communities will ask for the same opportunity in the future, and it will be up to the Legislature to decide if that is warranted.
“I am opposed to the expansion of gaming because that is what it’s reduced to,” said East Chicago Mayor Anthony Copeland.
Copeland said East Chicago and others have followed the rules and stayed within the guidelines set by the state. Copeland said people say that moving the Gary licenses will give the state more revenue, but Indiana already has $2 billion in the bank.
If the casino moves, the real people who will be hurt are the workers in East Chicago and other communities.
“Let’s not do irreparable harm to the every-day Joe,” Copeland said.
The Indiana Gaming Commission this month approved the sale of the two Majestic Star casinos to Spectacle Entertainment.
Majestic Star LLC has held one of the Gary gaming licenses since the state first allowed the boats to open in 1990s. The Majestic Star company later bought the second license from Donald Trump, who first opened a neighboring Gary casino operation.
Spectacle in November announced it would acquire the Majestic Star, though at the time had not disclosed the sale price. Spectacle took over operators at the two Gary casinos last week.
Spectacle has said that regardless of what the Legislature does with the proposed bills, it will move ahead with reinvesting in the Majestic Star’s current casinos.