Indiana Audits East Chicago Casino Contract

INDIANA – As reported by the Indiana Post-Tribune: "Indiana Attorney General Steve Carter will investigate East Chicago's local casino agreement on behalf of the Indiana Gaming Commission, citing a need to scrutinize "questionable" transactions.

"Since 1994, East Chicago Community Foundation and the Twin Cities Foundation have each received 1 percent of the casino's gross revenue. A private, for-profit company, Second Century, receives 0.75 percent a year directly from the casino, under local agreement. Among other things, city officials have questioned the amount spent on salaries and board members, expensive consulting contracts and lack of oversight for grants provided by the foundations.

"After taking office in January, Mayor George Pabey asked the gaming commission to void the arrangement when the license was transferred from Harrah's Casino to Resorts International in April. Instead of voiding the deal, though, the Gaming Commission transferred the license. It left the question of whether the local agreement was legal to a lawsuit pending in Marion Superior Court. As part of the investigation, Carter filed a motion this week asking the judge to stay the suit, giving him time to complete his investigation for the Gaming Commission…"