T
he Indiana Gaming Commission approved on Wednesday, August 18 a deal under which Hard Rock will assume at least 85% ownership of the Hard Rock Casino Northern Indiana in Gary from Spectacle Entertainment.
The IGC unanimously approved the agreement on the $300 million gaming, dining and entertainment destination. Hard Rock already owned part of the casino and was contracted to operate it on behalf of the former majority owner, Spectacle, which is currently experiencing legal issues.
Spectacle Entertainment’s top executives have faced criminal and financial misconduct allegations, which led to its former CEO, Rod Ratcliff, to step down and the federal indictment of its former vice president, John Keeler.
State casino officials began investigating Spectacle in early 2020, after the filing of illegal campaign contributions with casino company money charges involving Keeler. According to state casino officials, Ratcliff was involved in the scheme.
Further accusations involve an alleged continuing control over Spectacle by Ratcliff, in violation of state orders. Ratcliff has denied wrongdoing and hasn’t been charged by federal authorities while Keeler is awaiting trial on the campaign financing case, reports Westport News.
Hard Rock has been operating the casino since it opened in May. On the importance of the new agreement, chief operating officer Jon Lucas said: “We believe in the project and feel good about being in this community and in this jurisdiction. This was the way to resolve it.”
Since its opening date, the casino generated $78 million in gross gaming revenue in its first 79 days of operation. Further plans for the Hard Rock Casino Northern Indiana include going forward with the opening of a sports book, slated for late September or October.
The financial terms of the deal have not been disclosed and the IGC awarded Hard Rock a one-year renewal of the state gaming license required to operate the casino. According to the company, the new board of managers will be comprised of members appointed by Hard Rock and an independent member deemed acceptable to the IGC.
The Spectacle investigation has also complicated plans for Terre Haute to become Indiana’s first new casino since 2008, with a project valued at $125 million.
Spectacle was forced in 2020 to give up ownership of the project to Terre Haute businessman Greg Gibson, who had an agreement with Hard Rock to operating it. However, the state commission voted June against renewing the casino license for Gibson’s company, citing lack of an executive team and secured full financing.
Hard Rock still remains interested in the project, according to Lucas, who said the company is “certainly willing to honor” the agreement if it comes to that. The state commission has September 22 as a deadline for interested companies to submit proposals for the casino license.
Original article: https://www.yogonet.com/international//noticias/2021/08/19/58905-the-indiana-gaming-commission-approves-hard-rock-to-take-over-northern-indiana-casino
