By Justin Schneider, Herald Bulletin Online
Reporter/Manager
justin.schneider@heraldbulletin.com
ANDERSON - Hoosier Park Racing & Casino is in no imminent danger of bankruptcy, say officials with its parent company, Centaur.
Without parity in Indiana gaming, however, its financial future is uncertain.
"If we fail at every turn... is it a possibility out of 20 possibilities?" said Centaur Chairman Roderick Ratcliff. "It is a possibility."
Ratcliff said under no circumstances would Hoosier Park close its doors. His comments came after State Sen. Luke Kenley, R-Nobleville, in a televised report, essentially predicted bankruptcy for Hoosier Park due to trouble repaying two large bonds.
Centaur borrowed heavily in order to pay a $250 million licensing fee to Indiana and to fund the construction of its 92,000-square-foot casino. The televised report on Wednesday suggested that Hoosier Park has two large bonds due within 90 days, which Ratcliff characterized as "incorrect," saying its first loans are due in 2012.
He framed Hoosier Park's financial troubles in the larger context of excessive taxation.
"The model set up for the racinos today does not work," Ratcliff said. "Even without the $250 million license, we would be unable to compete." Jim Brown, general manager of gaming at Hoosier Park, said the Anderson racino and Indiana Live Casino in Shelbyville are taxed at a rate of 47 percent, while Indiana's riverboat casinos are taxed at 35 percent. They have lobbied legislators to level the playing field and the matter is under consideration by the Gaming Study Committee. Kenley chairs the committee, which will meet again on Oct. 19.
Ratcliff said a study undertaken by the Kelley School of Business at Indiana University found that a $125 million licensing fee would be appropriate for a casino based at Hoosier Park. Given the crushing debt it incurred to pay twice that amount, Ratcliff said paying $250 million was a mistake.
"Do I regret it? Absolutely," Ratcliff said. "I regret agreeing to $250 million."
Indiana Gaming Commissioner Ernie Yelton previously told The Herald Bulletin that without financial relief, the bankruptcy of Hoosier Park Racing & Casino is "imminent." Joe Gorajec, executive director of the Indiana Horse Racing Commission, said he is not familiar with Hoosier Park's financial status and has received no paperwork to suggest a bankruptcy.
"We've received nothing from Hoosier Park," Gorajec said. "I'm not aware of any scenario whereby the track would discontinue operations."
Ratcliff and Brown said Hoosier Park's business is actually very healthy. Relieved of the burden of debt and excessive taxation he said he believes the facility can thrive.
"We're very optimistic that the capital structure is going to get re-worked," Ratcliff said.