The Indiana Gaming Commission on Wednesday disciplined two casino executives responsible for an ongoing Hard Rock casino project in Northwest Indiana and previously central to Vigo County’s bid for a casino license.
Gaming executives Rod Ratcliff and John Keeler, both formerly of Spectacle Entertainment and New Centaur Gaming, were disciplined as part of an ongoing investigation involving alleged illegal campaign contributions, among other offenses.
The two earlier this year divested ownership interests in then-Spectacle Entertainment’s bid to build a Terre Haute casino. One Eyed Jack Ventures, owned by Terre Haute businessman Greg Gibson, now solely holds the Vigo casino license.
While Wednesday’s Gaming Commission actions involve well-known, longtime Indiana gaming figures, they have no immediate impact on development of the Terre Haute casino project, the license for which is now separate.
The Gaming Commission suspended Ratcliff’s occupational gaming license for 90 days, after which it will determine whether it is appropriate to reinstate his license, extend the suspension or revoke his license altogether.
The commission also ordered that Ratcliff turn over to a trustee all of his stake in Spectacle Entertainment by Jan. 8, 2021.
Ratcliff’s attorney, Steve Grimes, said the emergency suspension was unnecessary as Ratcliff was willing to step away from gaming in the state — although he added Ratcliff has not been indicted or charged with a crime.
But after being asked if Ratcliff was willing to voluntarily surrender his gaming license indefinitely as the gaming commission continues its investigation, Grimes said Ratcliff had no interest in doing that.
The plan touted by Ratcliff’s representatives was that he would divest of his interest in the company by placing that interest in escrow and selling it to Gibson. Although Gibson is the sole license holder in Vigo County, he remains a vice president with Spectacle Entertainment, which operates the Majestic Star casinos in Northwest Indiana.
Executives with Hard Rock International, incoming operators of both the Northwest Indiana and Terre Haute casinos, said such a deal would require their consent, and they feel that sale would give Ratcliff undue influence as a creditor.
The Tribune-Star’s attempts to reach Gibson for comment on Wednesday were not successful.
Hard Rock executives said they twice have offered to buy Ratcliff’s interest in Spectacle Entertainment and have twice been rebuffed.
Ratcliff was previously chief executive officer and chairman of the Spectacle Gary Board of Managers. He resigned from those two positions June 19. Spectacle subsequently appointed Ratcliff to the position of investor relations and financial advisor. On Dec. 3, Spectacle Gary terminated Ratcliff from that position.
Ratcliff was also previously the chief executive officer of New Centaur Gaming LLC, operating Indiana Grand Racing & Casino in Shelbyville and Hoosier Park Racing & Casino in Anderson.
The suspension of his license stems from an ongoing investigation into alleged campaign finance violations.
A Sept. 24 federal indictment named Keeler and a Centaur executive as participants in an unlawful and unreported corporate contributions from Centaur in violation of federal law via a conduit scheme utilizing false invoices and false reports filed with the Federal Election Commission.
The indictment alleges that on April 6, 2015, a Centaur assistant purchased round-trip airfare for a person to travel to Indianapolis to meet with a Centaur executive at the airport on April 10. Federal prosecutors say the intent of the meeting was furtherance of the illegal contribution scheme.
According to information obtained independently by the commission, the Centaur executive identified in the indictment is Ratcliff.
The commission also chided Ratcliff for failing to cooperate with commission staff, for failure to update commission staff when updating his trust agreement, failure to update the commission regarding equity transfers, failure to disclose creation of a settlement and release agreement and for trying to exert control over Gary casino licensee.
Grimes said the commission was putting penalty before process in its disciplining Ratcliff on Wednesday.
IGC Chairman Michael McMains said Ratcliff has twice been offered, but twice declined opportunities to meet with IGC staff.
“To own a gaming license in Indiana is a privilege,” McMains said. “... At least twice this year we’ve asked Mr. Ratcliff to come in and meet with our staff and he’s refused to do so. That in itself seems a very troubling fact to me. All these other things aside, that in itself is a real concern.”
The commission also Wednesday ordered Keeler and Spectacle to disassociate by Jan. 15, 2021. Keeler must dispose of all of his interests in Spectacle and any affiliated entities.
Keeler’s gaming license was suspended in September following his indictment in the Southern District of Indiana. Keeler is a named defendant in the alleged scheme to funnel money from Centaur to a congressional campaign.
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