Indiana gambling law on hold after former state lawmaker pleads guilty
Indiana will not consider any gambling measures next year after a former state lawmaker pleaded guilty to a federal corruption charge that stemmed from promising a lucrative job at a casino company in exchange for passing legislation to curb the state's gambling industry. law.
Speaking on WFYI Indianapolis this week, Senate President Pro Tempore Roderick Bray (R-Morgan) and House Speaker Todd Houston (R-Fishers) said the scandal will lead to the passage of gambling in 2024 The legislation will soon be repealed.
“This is damaging to the state Legislature,” Bray said in explaining the scandal. "It reduces trust in the integrity of the state Legislature. It raises a lot of questions and makes it particularly difficult to engage in this type of politics."
Earlier this month, former state Rep. Sean Eberhart (R-Shelbyville) pleaded guilty to federal corruption charges after he agreed to support gambling legislation that would benefit casino companies in exchange for future jobs. Federal prosecutors allege that Eberhart supported a law in 2019 that lowered the state's casino license conversion fee from $100 million to $20 million and pushed a bill to provide tax incentives for casinos.
The U.S. Justice Department said Eberhart did so on behalf of Spectacle Entertainment. Spectacle is moving one of its two casino licenses in Buffington Harbor on Lake Michigan to downtown Gary after moving fees were reduced.
Dark Circles in the Gaming Industry
In 2018, Spectacle Gaming received two Indiana casino licenses from Majestic Holdco. The deal gives the Indiana gaming operator ownership of two Majestic Star riverboats.
Spectacle wants to move the casino to a more attractive market, with downtown Gary as the preferred location. Spectacle paid the state $20 million to move gambling privileges to downtown Gary after Eberhart convinced fellow Indianapolis lawmakers to support lower relocation fees.
Spectacle then spent $300 million to build a new brick-and-mortar casino. It hired Hard Rock International to operate the property, which opened in May 2021 as Hard Rock Casino Northern Indiana.
In exchange for Eberhart's cooperation in reducing gaming license relocation fees by 80 percent, federal prosecutors allege, Spectacle agreed to hire him after he left state politics. The company guaranteed Eberhart an annual salary of at least $350,000.
Eberhart faces up to five years in prison, a $250,000 fine and three years of supervised release. He will be sentenced at a later date, but prosecutors are expected to recommend a reduced sentence in exchange for his guilty plea.
Public Distrust
Eberhart's scandal is not the first gambling crime to rock Indiana politics. In August 2022, former state Sen. Brent Walz (R-Greenwood) was sentenced to 10 months in prison for accepting $40,500 in illegal donations from New Centaur Casino during the 2016 congressional election.
Neocentauri is the precursor to the spectacle. John Keeler, co-founder of New Centaur and Spectacle, was sentenced to two months in prison for filing false tax returns related to Waltz bribes.
Walz pleaded guilty to two counts of making and receiving pipeline donations and lying to the FBI. Hard Rock International agreed to buy Spectacle for an undisclosed amount in the wake of two political scandals.
In an editorial last week, the Daily Mail editorial team concluded that the Eberhart case was just the latest corruption story in the state Legislature.
"If this was an isolated incident, perhaps we would be more compassionate. However, this is not an isolated incident. Year after year, legislators give up when they find more favorable conditions. Your team will use Another member of your team fills the void. Everyone wins. Stay out of the public eye," the editorial concluded.
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Source: www.casino.org
