Tuesday, Sept. 27, 2005 | 10:17 a.m.
Officials move quickly on casino project
INDIANAPOLIS -- The developers of an Orange County riverboat told state gaming officials Monday they are moving quickly to form a new management team to oversee the casino project after the original plans fell through.
A general manager could be hired within a week, project officials said, and other top managers could be hired within two months. Officials hope to keep the casino's timeline on track so that it can open by the end of 2006.
"It's very important to us that the Orange County project opens at or about the projected time," said Ernest Yelton, executive director of the Indiana Gaming Commission.
In June, the commission gave initial approval to a $250 million proposal from Blue Sky Casino, a partnership between Bloomington medical device maker Cook Group Inc. and real estate developer Lauth Property Group Inc. of Indianapolis, to run a casino and hotel venture in southern Indiana's Orange County.
Under that initial plan, Blue Sky signed with Majestic Star Casino -- which also has a casino in Gary -- to operate the Orange County facility. But Friday, officials said they wanted to form their own team, instead of using Majestic Star.
Vernon Back, general counsel for the Lauth Group, said a general manager will be hired first, followed by people to run finances, marketing, technology and gaming.
Although the Orange County project is not the first Indiana casino to use its own managers instead of an outside company, it is the first that has not had prior experience in managing casinos, Yelton said.
Eventually, he said, the managers of the Orange County casino could venture into other projects.
"Indiana will have its own local gaming entity," Yelton said. "I find that exciting."
Under the projected timeline, the casino is to be operational by December 2006. The Cook-Lauth partnership plans to renovate 440 rooms at the French Lick Springs Resort _& Spa and 240 rooms at the nearby West Baden Springs Hotel by the end of 2007.
Also Monday, the commission fined Belterra Casino in Switzerland County _$15,000 for violations of the state's voluntary exclusion program. The program allows people with gambling problems to put themselves on a list that prevents them from entering casinos, winning jackpots, cashing checks or getting credit extensions.
Gaming officials said Belterra extended credit to a person in the voluntary exclusion program three times before the person won a jackpot and the error was discovered. Belterra General Manager Larry Buck said the mistake occurred because not all of the casino's employees were properly trained on how to check the program list.
He said the problem has since been fixed.
Yelton also said Monday that 55 Gulf Coast residents displaced by Hurricane Katrina are in Indiana working for four of the state's casinos. All are employees who worked at casinos damaged or destroyed in the storm, and are now working at sister casinos around the nation.
Indiana has waived fees and licensing procedures for those already licensed in Gulf Coast casinos.
Yelton said more casino workers may come to Indiana after the damage from Hurricane Rita is assessed.
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