Indiana Gaming Commission asks about casino’s claim of economic hit from bridge’s closure
By APSaturday, January 23, 2010
Indiana asks questions about casino bridge claim
EAST CHICAGO, Ind. — An investigator for the Indiana Gaming Commission has been asking questions about a claim by Majestic Star Casino that it lost money because of the closure of a key Lake County bridge.
The inquiry follows comments Jan. 9 by Majestic Star Vice President Jason Gregorec about the closure’s effects during a public hearing, The Post-Tribune of Merrillville reported Saturday.
Gregorec told lawmakers the company’s two Gary gambling boats laid off 40 employees as a direct result of business lost from the closure of Indiana State Road 912 and its bridge over the Indiana Harbor and Ship Canal.
Gregorec also said Indiana had lost $10 million in tax revenue and the closure meant an 18 percent revenue loss for Majestic Star’s casinos.
But Larry Buck, Majestic Star’s general manager, said Friday that the closure alone can’t be blamed for the revenue loss. He said the Gaming Commission probably is trying to clarify the statement.
“There are so many variables that affect our revenues,” Buck said. “It’s probably unfair to attribute any one month to any one variable.”
Concerns over the mile-long bridge’s integrity led state officials in November to close a 4-mile stretch of the highway, known locally as Cline Avenue, which is a major artery to and from Chicago. It carries about 30,000 vehicles a day and serves the ArcelorMittal steel mill and the Ameristar and Majestic Star casinos on Lake Michigan.
Detroit businessman Don Barden, owner of Majestic Star, made a similar revenue argument to the Indiana Senate’s appropriations committee Thursday while testifying on a bill to allow land-based gambling.
“The Cline Avenue bridge is out and it’s closed indefinitely,” Barden told the panel. “Our revenue has dropped 20 percent since that has happened, roughly.”
Barden said Friday that he didn’t mean to imply that loss was entirely because of Cline’s closure.
Information from: Post-Tribune, www.post-trib.com
