ILNews

AG wants disclosure of riverboat casino money

Back to TopE-mailPrintBookmark and Share

Non-profit and for-profit companies that receive riverboat casino revenue through economic development agreements should have to disclose how they spend the money, the Indiana Attorney General told lawmakers at a legislative committee meeting on Monday.

At its third meeting of the year, the interim Gaming Study Committee met to discuss several issues relating to gambling in Indiana, including a topic that ties in directly with ongoing litigation in both state and federal courts. Where riverboat casinos operate, state law requires that a local development agreement be set up so a portion of casino revenue is set aside and directed to fund local economic development projects to boost tourism. But disclosure for how that money is spent isn't currently required.

Attorney General Greg Zoeller testified before the 11-person committee about his continued push to require public disclosure by any corporation receiving this revenue through a statutory agreement. Deputy Attorney General David Miller also appeared. The AG's support for the transparency stems from the case of East Chicago Second Century, in which a for-profit company received 0.75 percent of the revenue from the city's riverboat casino - or $16 million over 10 years. The 1995 agreement was put in place by former East Chicago Mayor Robert Pastrick, who is no longer in office.

New leadership in East Chicago canceled the Pastrick-era local development agreement, and the AG's office reports that approximately $6.3 million in revenue remained in escrow at the end of 2008. In the Pastrick case and the ongoing Second Century case in Marion Superior Court, the AG's office is trying to force open the books and impose a constructive trust over the corporation to create accountability.

Second Century got the case dismissed at the trial court and Indiana Court of Appeals levels, but in April the Indiana Supreme Court ruled in favor of the state and revived the case, sending it back to Marion Superior to decide whether Second Century must make a public disclosure of how it spent casino revenue. "Beyond asking the trial court to impose a constructive trust on the Second Century organization and reform its operation, we are trying to pry open the long-closed financial books to find out who benefited from the $16 million Second Century received," Zoeller said. "We are asking the trial court to do that with Second Century, and we are asking the legislature to require that same public disclosure wherever casinos have Local Development Agreements with outside entities, not just in East Chicago."

A disclosure provision was inserted into House Bill 1514 during the General Assembly's regular 2009 session, but it was removed during conference committee negotiations in the final days of the session last April. The committee didn't take a vote on Monday, but AG spokesman Bryan Corbin said Zoeller hopes to see the disclosure language introduced again during the upcoming session.

ADVERTISEMENT

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. @ President Snow, like they really read these comments or have the GUTS to show what is the right thing to do. They are just worrying about planning the next retirement party, the others JUST DO NOT CARE about what is right. Its the Good Ol'Boys - they do not care about the rights of the mother or child, they just care about their next vote, which, from what I gather, the mother left the state of Indiana because of the domestic violence that was going on through out the marriage, the father had three restraining orders on him from three different women, but yet, the COA judges sent a strong message, go ahead men put your women in place, do what you have to do, you have our backs... I just wish the REAL truth could be told about this situation... Please pray for this child and mother that God will some how make things right and send a miracle from above.

  2. I hear you.... Us Christians are the minority. The LGBTs groups have more rights than the Christians..... How come when we express our faith openly in public we are prosecuted? This justice system do not want to seem "bias" but yet forgets who have voted them into office.

  3. Perhaps the lady chief justice, or lady appellate court chief judge, or one of the many female federal court judges in Ind could lead this discussion of gender disparity? THINK WITH ME .... any real examples of race or gender bias reported on this ezine? But think about ADA cases ... hmmmm ... could it be that the ISC actually needs to tighten its ADA function instead? Let's ask me or Attorney Straw. And how about religion? Remember it, it used to be right up there with race, and actually more protected than gender. Used to be. Patrick J Buchanan observes: " After World War II, our judicial dictatorship began a purge of public manifestations of the “Christian nation” Harry Truman said we were. In 2009, Barack Obama retorted, “We do not consider ourselves to be a Christian nation.” Secularism had been enthroned as our established religion, with only the most feeble of protests." http://www.wnd.com/2017/02/is-secession-a-solution-to-cultural-war/#q3yVdhxDVMMxiCmy.99 I could link to any of my supreme court filings here, but have done that more than enough. My case is an exclamation mark on what PJB writes. BUT not in ISC, where the progressives obsess on race and gender .... despite a lack of predicate acts in the past decade. Interested in reading more on this subject? Search for "Florida" on this ezine.

  4. Great questions to six jurists. The legislature should open a probe to investigate possible government corruption. Cj rush has shown courage as has justice Steven David. Who stands with them?

  5. The is an unsigned editorial masquerading as a news story. Almost everyone quoted was biased in favor of letting all illegal immigrants remain in the U.S. (Ignoring that Obama deported 3.5 million in 8 years). For some reason Obama enforcing part of the immigration laws was O.K. but Trump enforcing additional parts is terrible. I have listed to press conferences and explanations of the Homeland Security memos and I gather from them that less than 1 million will be targeted for deportation, the "dreamers" will be left alone and illegals arriving in the last two years -- especially those arriving very recently -- will be subject to deportation but after the criminals. This will not substantially affect the GDP negatively, especially as it will take place over a number of years. I personally think this is a rational approach to the illegal immigration problem. It may cause Congress to finally pass new immigration laws rationalizing the whole immigration situation.

ADVERTISEMENT