From Indianapolis yesterday came the recommendation that the Majestic Star Casino in Gary, which recently filed for Chapter 11 bankruptcy protection, be allowed to relocate onto land. A legislative committee made the recommendation as being in the state’s interest to maintain gaming industry viability in Gary. The two Majestic Star licences would be consolidated and one licence returned to the Indiana Gaming Commission.

Legislation is expected to be introduced in the New Year to permit the move from Lake Michigan to land. Mayor Rudy Clay said that a top priority for the city was to have a land-based casino in Gary. The Gaming Study Committee estimates that such a casino would generate an extra $11 million annually in betting tax revenue.

Majestic Star Casino, a Las Vegas-based casino operator, has stated that the recession and competition caused the company’s financial problems. Majestic Star, under CEO Don Barden, operates casinos in Indiana, Mississippi, Nevada and Colorado and lists estimated assets in the range of $100 million to $500 million and estimated liabilities in the range of $500 million to $1 billion.

Following the release of the Gaming Study Committee report yesterday, Mayor Tom Henry of Fort Wayne declared it good news for the city. “As I have said consistently, I want the people of Fort Wayne to be able to make their own decision about gaming. This report echoes those sentiments. That is why I led the way in calling for a referendum. And why I will continue working with our state legislators to secure one.”

He added, “Gaming is such a significant employer and source of revenue for the state of Indiana. I applaud the committee for its thoughtful examination of this issue and its determination to sustain the gaming industry to the benefit of all Hoosiers. The finding that a viable, untapped market exists in Fort Wayne should be especially encouraging to lawmakers and every citizen. What is equally heartening is that the report reinforces the outcomes of the City of Fort Wayne’s own research on this matter.” (E-12.09.09)

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