EDITORIAL: Land-based Gary casino would hurt Blue Chip and Michigan City

The News-Dispatch

The Indiana General Assembly may be considering allowing the bankrupt Gary casinos to move to what is considered a more profitable location at Interstates 65 and 94, at the upcoming legislative session. The new location could provide a net increase in gaming revenue to the state of $11 million, and that figure is conservative, State Sen. Earline Rogers of Gary says.

A new land-based casino at the intersection of those two busy highways may very well attract additional customers who weren't inclined to visit the casinos on Lake Michigan. And it may blunt the impact of possible new casinos in Des Plaines or downtown Chicago, Ill.

But moving a Gary casino license to a new land-based casino would draw customers from the other riverboats in Indiana, reportedly costing 10 or 12 percent of the business of Ameristar Casino in East Chicago and 3 to 5 percent of the business of Blue Chip Casino in Michigan City.

From this city's standpoint, such a change is not good.

And, as a spokesman for Boyd Gaming, which owns Blue Chip, said, "Any change to rules that would dramatically alter the competitive landscape would be a cause for concern."

Blue Chip already has had to endure losing some 30 percent of its business to the Four Winds Casino in New Buffalo, Mich., and dinging it another 3 to 5 percent will hurt Blue Chip, its workers and city government in Michigan City, which gets some $11 million in revenue per year from the Blue Chip, plus $1.5 million for its development fund.

While state must consider changes in the casino marketplace, lawmakers also need to remember that Blue Chip has invested $300 million in a new hotel and casino in the last four years. Changing the rules to the disadvantage of Blue Chip, its employees and Michigan City isn't fair.