INDIANAPOLIS – “Pssstt. Have you heard Fort Wayne is going to become a casino town?”
Or so go the persistent rumors and gossip for the past year.
The subject comes up at cocktail parties and City Council meetings. Local blogs and newspapers have polled on the possibility, with slight majorities against the idea.
Some people have even picked a spot for the fictitious casino – the north river development site along the St. Marys River.
But legislatively, the likelihood is slim, especially with no coalition of local officials, businesses and citizens actively or publicly pushing the idea.
The last casino approved by the General Assembly was in French Lick, and legislators did so through an existing but unused license rather than creating a new one. And dozens of supporters in orange shirts came to the legislature every day for a decade before they succeeded.
Then there are the competitive factors as casinos around the state are making less money. Any shuffling of the 11 licenses could negatively affect the entire landscape.
“I would be utterly amazed if (a Fort Wayne casino) ever happened,” said Rep. Trent Van Haaften, D-Mount Vernon, chairman of the House Public Policy Committee where all gambling legislation is heard.
“We have done quite a bit in regards to gaming in the past two years, and I am of the belief that it is time to let it settle; let those companies do business in the places they are at currently.”
So why do rumors persist?
It’s simple. Governments need revenue, and casinos bring in millions for the owners of the boats, the state and cities where they are located. This is true even with a recent drop in attendance attributed to the economic downturn.
Another reason for the rumors is because there is at least one unhappy casino owner looking to move to northeast Indiana, whether it is Steuben County along the Toll Road or Fort Wayne with access from Interstate 69.
Don Barden, the businessman who owns the two Majestic Star casinos in Gary, tried last session to get lawmakers to let him move one of his side-by-side underperforming licenses to northeast Indiana while upgrading the casino that remains in Gary.
Gary officials protested loudly. Eventually, the bill, carried by former Sen. Robert Meeks, R-LaGrange, was altered to simply allow referendums on casino gambling in Steuben County and the city of Fort Wayne. But it didn’t receive a second in committee and died a quick death last January.
A few weeks later, Barden sued the city of Gary, withholding annual payments of up to $6 million because the city failed to build a promised access road. Although he has since released some of the money to the cash-strapped city, litigation is pending, and there has been no negotiation on a casino move since.
Barden did not return several messages seeking comment.
Rep. Charlie Brown, D-Gary, said he hears rumors almost daily about the two boats in Gary. He concedes it’s doing the city no good to have two licenses in one place, especially with both struggling.
But he thinks Gary should receive additional compensation through a revenue-sharing option if the license is transferred.
Senate President David Long, R-Fort Wayne, has made it clear that legislation to move an existing casino license will stall in the Senate unless legislators and city officials from the Gary area come up with a relocation agreement that pleases all sides.
“There is currently not a license available. That could change, and if that does, that’s why there is some behind-the-scenes maneuvering,” Long said.
If an agreement is worked out, he said he would not block the issue.
“I’m not a fan of it, to be honest with you. But I don’t think that’s for one person to decide. I think it’s up to the community,” Long said, noting a referendum would be required. “There are a lot of barnacles to having a casino in your community. But it probably would help downtown.”
Even if the idea gets past opposition coming from Gary, legislators who represent other counties with casinos would no doubt balk.
“You have to look at the loyal opposition; who will it harm?” Brown asked. “This is a lobbyists’ feat.”
Strong resistance would likely come from Blue Chip Casino and Hotel in Michigan City as well as Hoosier Park Racing and Casino in Anderson because both venues depend on northeast Indiana for customers.
“When it comes to the legislature, every location with a boat or casino doesn’t want any movement because it cuts their revenue,” said Rep. Win Moses, D-Fort Wayne. “Once they are in there, they are going to be hard to move. I give it a 1-in-10 chance. It’s very small.”
