Only one group bids on Indiana casino project

Deanna Wrenn

Thursday, April 21, 2005 | 9:47 a.m.

INDIANAPOLIS -- The deadline for applications for the Orange County casino license dropped by Donald Trump's company passed Wednesday with no additional applications.

Only a partnership between Bloomington-based medical device maker Cook Group Inc. and Lauth Property Group Inc. of Indianapolis submitted an application and a $50,000 application fee, said Indiana Gaming Commission Executive Director Ernest Yelton.

The application, which was filed under the name Blue Sky Casino LLC, proposes that the southern Indiana riverboat casino would be operated by Majestic Star Casino LLC, Yelton said. The company owns and operates a Gary riverboat casino.

"Majestic Star is the perfect gaming operator for our project," said Robert Lauth, CEO of Laugh Group. "Not only do they have solid gaming management experience, they already have a presence in Indiana."

The $240 million casino proposal would restore the French Lick Springs Resort & Spa and the nearby West Baden Springs Hotel. The riverboat would be moored in a lagoon dug next to the French Lick hotel.

Cook Group's 50 percent interest in the project would be held by a nonprofit charitable foundation. Under the proposal, half of the casino profits would go toward historic reservation, restoration and education in the region.

Yelton said one potential applicant told the Gaming Commission they could not compete with that plan, so they did not submit an application.

"This is a rather formidable proposal," Yelton said.

Another company, Orange County Development LLC, whose members include French Lick native and basketball star Larry Bird, had submitted an earlier proposal but did not to turn in another application during the latest round. Gaming operator Nevada Gold _& Casinos, Inc. recently announced that a subsidiary had acquired a 75 percent interest in Orange County Development.

"While we like the potential of this market, the current competitive dynamics are such that we have decided to forego the opportunity at this time," said H. Thomas Winn, Nevada Gold's president.

Yelton said the licensing process would essentially remain the same despite having just one applicant.

Background checks will be conducted, although Yelton noted that Cook is the only division of the partnership that has not been investigated. Lauth cleared background checks during the first round of applications, and casino operator Majestic Star already is cleared to run casinos in Indiana.

The commission has set a June deadline for deciding on the license.

"The decision here is not between applicants, it's 'Is this a thumbs up or a thumbs down?"' Yelton said. "It will be looked at under a microscope."

A former partner criticized Lauth Group for the new venture. Merit Gaming of Chicago, which had partnered with Lauth in earlier Orange County applicant Lost River Development, issued a statement Wednesday saying Lauth had worked "secretly" with Cook Group.

"It now appears to Merit Gaming that simultaneously Lauth had been secretly pursuing the Orange County contract with others to the exclusion of the partners in the Lost River Development LLC, including Merit Gaming," the company said in a statement.

Lauth officials say they told Merit repeatedly that they would not work with the company on another application.

"We did nothing secretly," said Vernon Back, a Lauth Group lawyer.

The Gaming Commission reopened the bidding for the license last month after Trump Hotels and Casino Resorts filed for bankruptcy and dropped its plans.