Commission approves plan for Indiana casino

Ryan Lenz

Friday, June 24, 2005 | 9:19 a.m.

FRENCH LICK, Ind. -- The state Gaming Commission gave initial approval Thursday to a $250 million plan to build a casino in southern Indiana's Orange County, bringing hope of an economic revival to an area with one of the state's highest unemployment numbers.

The proposal, led by Bloomington billionaire William Cook's company and Lauth Property Group Inc. in Indianapolis, was the only one submitted when the bidding process reopened in March after Donald Trump's casino company withdrew from a contract to build and operate the casino.

"Although we were presented with only one applicant, we weighed our consideration as if there were many," said Ernest Yelton, the commission's executive director, shortly before announcing the approval.

But the commission's unanimous vote on the bid from Blue Sky Casino came with several conditions.

Commissioners said they had yet to review contracts for work on two nearby historic hotels -- the French Lick Springs Resort & Spa and West Baden Springs Hotel -- and with Majestic Star to operate the casino. The commission said Blue Sky also needs to name a general manager to the casino, the final allowed under state law.

The approval also came with some concern. Commission member Don Vowels asked Bob Lauth, chairman and CEO of the Lauth Group, if he had given any political contributions to Gov. Mitch Daniels' campaign in 2004.

"I honestly can't remember," Lauth said.

An Associated Press check of contributions listed on the Indiana Campaign Finance Division's Web site showed that Lauth Property Group gave $380 to the Daniels campaign in late 2003 and $1,000 to former Democratic Gov. Joe Kernan's campaign in 2004. It also listed a Robert L. Loth Jr. of Carmel as giving $2,000 to the Daniels campaign in late 2003.

"I have been involved in this project just as long as Gov. Daniels, and if there is any hint of a political conspiracy, I am totally unaware of it," Yelton said.

The commission could finalize the license approval by August, he said.

The conditional approval comes three months after Trump officials cited a tax court decision that the company owed $18 million in back taxes for a casino along Lake Michigan in Gary when it decided against continuing work on the project in French Lick, 40 miles south of Bloomington.

Daniels said he was pleased with how the matter had been dealt with since he publicly raised objections to the Trump deal shortly after being elected.

"We're going to get a much better outcome: a casino that is first of all Hoosier owned, which I think will be up and running just as fast and not nearly so vulnerable to big disappointment and a stoppage as could easily have happened with what turned out to be a bankrupt company," Daniels said.

Supporters of the casino, historically known by the orange shirts they wore for a decade to lobby state lawmakers for an Orange County casino, changed into blue shirts for the hearing on Blue Sky's proposal.

About 30 supporters erupted in applause when the commission announced its conditional approval.

During its heydey in the 1920s, French Lick and West Baden had 17 casinos between them. Those days ended in 1949, when Indiana banned gambling.

Marilyn Fenton, 72, of Paoli, told the commission during a public comment session that it made no sense why the state would wait to allow gambling in a historic gambling hot spot. She said she had opposed Trump's plans to build a casino and was eager for Blue Sky to begin working.

"When they finally decided to allow gambling in casinos, this should've been the first casino because this is where it historically always was," Fenton said.