Hoosier Park tightens belt by reducing staff

February 3, 2014

Hoosier Park tightens belt by reducing staff

Officials say layoffs are the result of a downturn in business and a poor economy

By Traci Moyer The Herald BulletinThe Herald BulletinThe Herald BulletinMon Feb 03, 2014, 07:33 PM EST

ANDERSON — Hoosier Park Racing & Casino has laid off 13 employees due to a downturn in business, poor economic conditions and “ongoing and very aggressive” competition from Ohio casinos.

Jahnae Erpenbach, vice president and general manager of gaming for Hoosier Park, said the employees were offered severance packages, other positions within the company, or outplacement services to help them transition into new employment on Friday.

“Believe me, Hoosier Park would much rather be adding jobs,” Erpenbach said.

The staffing level adjustments were made through a reduction of staff and the combining and changing of responsibilities, she said.

Erpenbach said that because the cutback was made to meet the ongoing business levels of Hoosier Park, customers would not be affected by the changes made in staffing levels.

Hoosier Park employs approximately 1,000 employees at Hoosier Park, she said.

In December, Hoosier Park reported a 3 percent drop in revenue from January to November 2013, compared to the same period in 2012.

In an Indiana Gaming Commission report, Hoosier Park reported a total win of $17,085,600 for 2013, down from its 2012 total win of $17,543,537.

Statewide, 13 casinos reported an 8 percent total drop in revenue in 2013, which is a loss of $13 million from 2012.

Erpenbach said new hires will depend on the growth of the gambling industry.

“I hope we have a successful year,” she said.

Like Traci L. Moyer on Facebook and follow her @moyyer on Twitter, or call 648-4250.

Wagering tax According to the Indiana Gaming Commission's Annual Report for 2013, Hoosier Park was in the state's top six out of 13 casinos for its percentage of annual wagering taxes. - 23 percent Horseshoe Hammond- 15 percent Hollwood- 10 percent Ameristar- 12 percent Horseshoe Southern- 8 percent Indiana Grand- 7 percent Hoosier Park- 6 percent Blue Chip- 5 percent Belterra- 4 percent Tropicana Evansville- 3 percent Majestic Star- 3 percent Majestic Star II- 2 percent French Lick- 2 percent Rising Star Source: Indiana Gaming Commission


http://www.heraldbulletin.com/business/x1262669012/Hoosier-Park-tightens-belt-by-reducing-staff

 

Indiana: Addicted to Gambling

Because their neighbors are doing it, Indiana will rush to expand gambling.

Slot Barns, approved to 'Save Racing' will expand to table games on the pretext of 'job creation.'

River Boats, initially promoted to solely travel the river, now docked, will become land-based.

Don't kid yourselves. There are already plans in Massachusetts to expand.


Indiana considers gambling changes for racinos

Posted: Jan 23, 2013 6:13 PM EST

By Kevin Rader

 

 

 

INDIANAPOLIS - Indiana's gambling revenues have been falling and casinos are looking for high stakes help to keep up with the competition. Ohio, Illinois and Michigan are all expanding gambling, giving gamblers more options.

Gaming in Indiana is big business. It may have dropped from third to fourth in the nation in 2012, but it still touts staggering numbers: $500 million in charitable gaming and $2.6 billion in casino gaming. [Money lost by its residents.]

Neighboring states are now threatening those numbers. Legislation before the Indiana General Assembly is an attempt to curb the threat. It is asking lawmakers to allow the state's two racinos in Anderson and Shelbyville to introduce live tables.

"We are actually taking a robot and replacing it with a live program. It should increase our employment at the casinos by 650 people," said Sen. Phil Boots (R-Crawfordsville).

The advantage for the two racinos is obvious. This change would give them live tables, something they currently do not have and something that would make them more competitive with the riverboats.

Riverboats, meantime, get the opportunity to expand into land-based operations. They are also asking for free promotional play and for a repeal of the admission tax to be replaced by a wagering tax.

While that threatens to actually cost the state money, it also represents a direct threat to the casino in French Lick. Currently over half of its business is generated from Marion County and Louisville. By letting the racinos basically offer the same services, such as live gaming, it puts French Lick at a competitive disadvantage.

On the other hand, Hoosier Park Racing and Casino is going above and beyond to make Anderson a better place to live. It was recently honored as a Distinguished Donor for the Madison County Community Health Center which sees 50,000 Hoosiers annually.

"They have always stepped up to the plate. When there is a need they are there," said Teresa Rodebaugh, Community Health Center.

Now Hoosier Park says there is a need. State lawmakers have to determine who actually ends up paying the price.  [Ingratiating themselves to justify expansion.]

http://www.wthr.com/story/20662963/indiana-considers-gambling-changes-for-racinos

Indiana Slot Barn Bankruptcy

On the right side of this blog are categories that contain historical articles. [Click 'Older Posts' at the bottom to see additional articles.]

Centaur previously filed bankruptcy and is now purchasing another Slot Barn out of bankruptcy.

In addition, the overstated projections seem to be discredited with this comment:

The two racinos employ about 2,000 people altogether.

There is no indication that Slot Barns increase attendance at horse races, merely rewarding already wealthy investors.

Gaming board OKs sale of Shelbyville casino

Published : Thursday, 10 Jan 2013

INDIANAPOLIS (WISH) - The Indiana Gaming Commission on Thursday approved the sale of Indiana Downs and Grand Casino in Shelbyville, 24-Hour News 8 news partner The Herald Bulletin reports .

The owners of the Shelbyville casino and racetrack filed for bankruptcy in 2011.

Last fall, Centaur – owner of the racino in Anderson, Hoosier Park - made the winning bid for Indiana Downs and Grand Casino. A bankruptcy judge approved the deal in November, but it still needed regulatory approval from the Gaming and Horse Racing commissions. Centaur was to pay $500 million and assume the second racino’s debts.

The Horse Racing Commission approved the sale last month. A final review by the chairman of the Indiana Horse Racing Commission and several financing and federal regulatory and legal approvals will complete the purchase.

The two racinos employ about 2,000 people altogether.

http://www.wishtv.com/dpp/news/local/east_central/racinos-fate-in-hands-of-gaming-board

Many gamblers tell Hoosier Park: Keep me out

Many gamblers tell Hoosier Park: Keep me out
129 in county request voluntary exclusion; racino happy to oblige
By Melanie D. Hayes
The Herald Bulletin The Herald Bulletin

ANDERSON, Ind. — Gambling at Hoosier Park and other Indiana casinos is a source of entertainment for many. But for some, it is a problem, an addiction and a downhill spiral to the point that they request that casinos not allow them in.

In 2004, the Indiana Gaming Commission created the Voluntary Exclusion Program where people could choose to be prevented from entering casinos across the state. People have to sign up on their own accord and can choose to be on the list for one or five years, or for their lifetime.

Madison County has the third highest number of participants in the state with 129 members.

In Indiana there are 1,846 active members and the counties with the highest memberships are Lake County with 471 and Marion County with 202. And although the program only deals with Indiana casinos, residents from other states can sign up too, which brings the total number of active members to 4,184.

John Shipley, manager of compliance at Hoosier Park, sees the high enrollment in Madison County as a positive thing because it means more people are getting the help they need for their gambling problems.

“The last thing we want is to have folks here who have problems,” he said. “We are an entertainment venue. Some people go see movies, some go play golf, some go to fancy restaurants, and some like to come to Hoosier Park for a night out. But other folks who have problems, they have the program which is a means by which they can help themselves.”



Hoosier Park is close by

Tom S., who runs two of the three weekly Gamblers Anonymous meetings in Anderson, believes the high numbers in Madison County are due to the fact that Hoosier Park is so accessible to residents. People who have serious addictions to casinos can more easily avoid their urges if they don’t have a casino nearby. Those who do live near one can give in more easily.

“I would say with something that close, individuals do have to say ‘I’m ready to stop,’” said Tom, 60, who, like other Gamblers Anonymous members, prefers to withhold his last name. “They think, ‘I know the casino is going to be there.’ Just like with alcoholics, they know the bars are going to be there.”

Lake County, which has several casinos and a large population, has the most residents signed up for the program, which makes sense, Shipley said.

Shelby County, where Indiana Live! Casino is located, only has 18 participants in the exclusion program, according to the programs statistics.

The casino, though, is located in a rural area and is not highly populated, so its clientele is largely from outside of the county, Shipley said. A majority of visitors are from Marion County, which is one explanation for why so many Marion County residents are on the exclusion list.

Meanwhile, Madison County is more populated and Hoosier Park is more centrally located in the state, so more resident from Madison County and surrounding counties go there, Shipley said.

Having a casino nearby can make the path to recovery tough for gambling addicts. But having them nearby also helps them join the exclusion program since anyone can walk into any Indiana casino and asked to be placed on the list.

When people ask about the program at Hoosier Park, employees contact on-site state gaming commission representatives who help them through the process and add them to the statewide database, Shipley said. People can also call or visit the gaming commission office in downtown Indianapolis to be added to the list.



Signs of a problem

Hoosier Park employees also provide people with information and resources for where they can get help for their problems. But once they are on the exclusion list, casinos cannot contact those people in any way or send them any promotional material, Shipley said.

Employees are also trained to help people who ask for help. They interact with clients and can ask gamblers several questions to see where they stand. That list of questions is on the Hoosier Park website for people who want to determine how serious their problem is.

Among those questions that people need to ask themselves are: Do you lose time from work due to gambling? Does gambling make your home life unhappy? Do you ever feel remorse after gambling? Do you often gamble until your last dollar is gone?

Casinos don’t actively enforce the program by stationing guards or checking everyone’s IDs, Shipley said. But the names and personal information of people on the list are available at all Indiana casinos. So, if people on the list go to Hoosier Park to play, and try to use their player cards to use slot machines or other games, employees are notified. And if they need to make a transaction at the cashier, they will also be found out. Or if they try to claim their winnings, employees will be notified and gamblers will lose their winnings.

“Sometimes we have team members who recognize a regular customer and know they have signed up, so that’s another way to control it,” Shipley said. “When you have 4,000 people on a list, you don’t expect everyone to know them each by face.”

It’s not a foolproof program, and there are probably people on the list who make it into casinos, but overall its an outstanding program that helps people control their problems, he said.

Tom, who lives in Anderson, said he has on average three to five people at each local Gamblers Anonymous meeting.

About 80 percent of his members have signed up for the Voluntary Exclusion Program, he said. According to gaming commission statistics, 38.5 percent of members sign up for a one year exclusion, 23.6 percent for five years, and 37.8 percent for lifetime.

“Some say it helps them because they know that technically, if they go (to a casino) they are trespassing,” he said. “People said they have gone and casino employees were nice to them and escorted them out.”

Being on the exclusion list is a deterrent for gamblers. They know they will be asked to leave. Or, if they make it in and win, they will be found out and won’t be able to claim their winnings, adding to their frustrating addiction, Tom said.

Some gambling addicts attend the Gamblers Anonymous meetings for support and help, but are not quite ready to bar themselves from casinos. Or some feel they can change their lifestyle on their own.

And some who do sign up say it doesn’t help because they can still go in to the casinos and play on slot machines without having to show an ID.

“Of course, the program doesn’t help if you’re into scratch-off tickets or Hoosier Lottery or bingo,” Tom said. “There are all kinds of gambling.”

Centaur, North East, H. Steve Norton, Massachusetts connections

The article at the bottom, addressing Centaur's Indiana bankruptcy, has an interesting history and Massachusetts connections --

H. Steven Norton Resigns from Diamondhead Casino - cbl

By citybizlist Staff

LARGO, Fla. -- Diamondhead Casino Corp. (OTCBB:DHCC) has accepted the resignation of H. Steven Norton from its board of directors, according to an SEC filing.

Norton's letter, which was attached to the filing, indicates that he resigned because the board felt that he had a conflict of interest due to the fact that his son, Mark Norton, is an executive with the CanCan casino project in D'Iberville, Miss.

Diamondhead Casino is developing a casino resort on the Bay of St. Louis in Diamondhead, Miss. Founded in 1988 and headquartered in Largo, Fla., the company owns approximately 404.5 acres of unimproved land to develop the resort.

H. Steve Norton was elected as a director of Diamondhead in 2002. Since 1998, he has served as President and CEO of Norton Management, Inc. Norton also serves as a Director of Centaur, Inc., a privately held company which owns a casino in Central City, Colo. Norton is also a Director of Colorado Casino Resorts, Inc. in Cripple Creek, Colo. and North East Resorts, Inc., a privately held company pursuing gaming in the state of Massachusetts.

As citybizlist reported last week, Diamondhead announced that it had entered into a Letter of Intent with Phoenix Gaming and Entertainment, LLC. In the letter, Phoenix proposes to purchase 25 acres of land for $1 million per acre to be used, in part, for the construction of a casino. Diamondhead has agreed to give Phoenix an additional 15 acres of land to be used for the construction of roadways and right-of-way requirements, greenery, buffering, on-site mitigation and/or the footprint for a possible parking garage.

Diamondhead's stock price closed at $0.95 on December 17.


Potential Churchill Downs-Centaur settlement in the works

LOUISVILLE, Ky. -- Churchill Downs Inc. may be ready to settle its $15 million claim from Centaur, its former minority partner and the current owner of Hoosier Park in Anderson, Ind.

When Churchill sold Hoosier Park in 2007, it was to receive $15 million from Centaur if the track got slot machines within a certain time frame. The slot machine time requirement was met, but Centaur filed for bankruptcy last March.

In a filing Wednesday in U.S. Bankruptcy Court in Delaware, Churchill said it has negotiated “a fair and equitable” settlement with Centaur that has yet to be filed. The filing also stated objections to an already filed Centaur reorganization plan in the event that Churchill’s planned settlement isn’t filed or isn’t approved.


Churchill spokeswoman Julie Koenig Loignon declined comment, citing a company policy not to discuss pending litigation.


Centaur Chairman Rod Ratcliff said in a statement that he was optimistic about a settlement.


“Considering the longstanding relationship with Churchill Downs, I am confident this issue can be resolved amicably,” he said. “While it is disappointing the parties find themselves in this situation, unforeseen circumstances have brought us to this point. Complex and intertwined events beyond the parties’ control have contributed to the situation.”


The unforeseen circumstances include the recession, the company said a subsequent statement seeking elaboration.


In Wednesday’s bankruptcy filing, Churchill repeated arguments made in a Dec. 30 filing that Centaur’s proposed settlement plan would treat Churchill unfairly by giving certain creditors half of what they are owed, with a cap of $650,000. The cap means Churchill would get about 4 percent of its $15 million claim while other creditors in the same settlement class would get the full 50 percent.


Churchill is the largest creditor in that class of debtors, followed by Ames Construction at $1.28 million and Anderson City Utilities at $136,649, according to Churchill’s filing.


Churchill argued in the Dec. 30 filing that the proposed settlement violates the bankruptcy code requirement of equal treatment of debtors. While acknowledging that courts have some leeway in interpreting what is equal, “no court has permitted a disparity of treatment anywhere near the magnitude of that proposed” in the current settlement, Churchill’s objection said.

Separately, Churchill filed suit in U.S. District Court in Indianapolis on Nov. 24 against Ratcliff and two investors, Mike Raisor and R. Michael O’Malley. The three signed a $4 million promissory note, which carried interest of 8.25 percent per year, to Centaur, which ultimately assigned the collection rights to Churchill.

In the district court case, Churchill claims it is now owed $5.07 million. The promissory note contained an additional interest charge of 5 percent a year if payments were more than 10 days late.

Ratcliff said the promissory note is separate from the bankruptcy but that he hoped it could be settled “in tandem with the company’s restructuring.”

At the time of the 2007 sale, Churchill owned 62 percent of Hoosier Park and Centaur owned the rest of the track, which opened as Indiana’s first pari-mutuel racetrack in 1994 after Churchill built it. At the time, Ratcliff was a minority partner.

The track started its slots operation in June 2008 and Centaur borrowed heavily to pay for a $250 million state license fee.

At the time of the bankruptcy filing, Centaur blaming the economy and the license fee for contributing to the company’s situation.

Steve Norton, North East Resorts and Indiana: Another Bailout?

Casino shills....Big Sigh! Have been writing articles, op-eds and comments to defend or minimize the impacts and actual costs of predatory gambling. They have mostly monopolized the conversation, pretending Massachusetts will be different.

Such has been the case of an author posting as Steve Norton of Alton, Illinois.

Most readers wouldn't be inclined the check further, such as Forbes, where it states:

Mr. Norton also currently serves as a Director of Centaur, Inc., a privately held company which owns a casino in Central City, Colorado and owns Hossier Park, an Indiana race track, located in Anderson, Indiana.

Mr. Norton is also a Director of Colorado Casino Resorts, Inc. in Cripple Creek, Colorado and

North East Resorts, Inc., a privately held company

pursuing gaming in the state of Massachusetts.

In January, in response to a comment posted by a poster indentifying himself as "Steve Norton," the following was posted --

It should be noted that Centaur has filed for bankruptcy in one state and is attempting to obtain tax relief from another.

In response, the "Steve Norton" poster wrote:

You mention Centaur, which is not in Bankruptcy, but has been unable to pay interest due. But you fail to mention the extraordinary up front fee to Indiana of $250 million for 2,000 slots and a tax that averages nearly 50%.

Part of the reply:

If you made a poor business decision, should a state bail you out?

Steve Norton wrote an Op Ed, printed in the New Bedford Standard Times that began:

.... I have no problem with anyone being opposed to gaming, whether on moral, religious or even economic reasons.

Wow! Casino shills sure like the 'moral and religious' accusation.

They know how to manipulate and it would seem, their studies indicate that MORAL and RELIGIOUS wins favor to support their predatory cause, distracts from the facts.

Then there's the bankruptcy filing of Hoosier Park, which is becoming a common practice. Casino Capitalism got taxpayer bailouts and casinos get bailouts, as well.

How good is that? The wealthy just get wealthier while soaking the rest of us.

Hoosier Park exec reassures employees
City expects no disruption in tax payments

By Aleasha Sandley, Herald Bulletin Staff Writer


ANDERSON, Ind. — A Hoosier Park Racing & Casino executive met with company department heads Monday to update them on the racino’s status as parent company Centaur prepares to go through bankruptcy proceedings while Anderson city officials rested easy on the assurance the city still would receive its Hoosier Park tax money.

“We let (employees) know nothing’s going to change,” racino General Manager of Gaming Jim Brown said. “We’re just trying to give everybody as much information as possible. All of our team members here know this is nothing but a blip because they know that there’s nothing to worry about.”

Anderson Deputy Mayor Greg Graham said he wasn’t worried either about the racino’s Chapter 11 bankruptcy, filed Saturday night in U.S. Bankruptcy Court in Wilmington, Del.

“Hoosier Park’s going to be just fine,” Graham said. “I think it’s more a sign of the times. Obviously that very large (state) licensing fee had something to do with this, and the greatest recession since the Great Depression hasn’t helped either.”

Hoosier Park had to pay a $250 million licensing fee to the state before it was able to start operations in 2008. Graham said Hoosier Park’s marketing area, which includes Anderson and much of central and northern Indiana and western Ohio, is more than capable of supporting the racino, Graham said, if it can overcome its tax and licensing fee burdens.

In paperwork filed by Centaur, the company’s assets and liabilities both are between $500 million and $1 billion, and it has between 10,001 and 25,000 creditors. The company’s largest creditor is Pennsylvania Real Estate Investment Trust for a contract worth more than $28.7 million. Centaur owns casinos in Indiana, Pennsylvania and Colorado.

Anderson city utilities is Centaur’s eighth largest creditor, according to the petition, for a total of $70,377.

Graham said the racino had been a “good corporate citizen” and had not had trouble with its utility payments.

Other creditors included Anderson’s Ed Martin auto dealer, the Indiana Horse Racing Commission and the state auditor.

Centaur spokeswoman Susan Kilkenny said all goods and services purchased after the bankruptcy filing would be paid, and the company planned to pay pre-petition claims “to the extent of the law.”

“Tax payments to local city and state governments will not be disrupted,” she said.

Although the state and the Indiana Gaming Commission are not parties to Indianapolis-based Centaur’s bankruptcy proceedings, IGC Executive Director Ernie Yelton said that agency would continue to ensure Hoosier Park’s operations fulfilled the commission’s regulations and that the racino continued to pay its taxes.

“Neither of those will be any problem whatsoever,” Yelton said. “The casino will remain in operation. People will not be fearful of their jobs.”

Yelton said Hoosier Park’s bankruptcy, one of four such situations for Indiana casinos in recent years, was indicative of difficult economic times but not of Indiana’s ability to support gaming.

“Regretfully, we’re getting a little bit too familiar with the process,” Yelton said. “I believe it’s a sign of the economic times and a result of the recession and tightening of the credit markets.

“There are many, many factors that influence this situation. There are many other gaming companies that are able to continue without seeking bankruptcy protection. I wouldn’t go so far to say that this is an omen of gaming in Indiana.”

Steve Norton and Centaur and Another Bankruptcy

After an exciting day on Beacon Hill, listening to the glistening promises of the Predatory Gambling Industry and watching elected officials with their eyes glazed over simply visualizing piles of money from a predatory industry and hearing few facts, I raced home for yet another RACINO DEFUNK story!

.

Thanks Steve for not disappointing!

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Steve Norton, who has been posting what might appear to be innocuous little blurbs, from Alton, Il, is none other than this Steve Norton ---

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Forbes
H. Steven Norton
.
Director
Diamondhead Casino
Largo , FL
Sector: FINANCIAL / Real Estate Development

75 Years Old
H. STEVEN NORTON was elected a Director of the Company on August 6, 2002. Since 1998, Mr. Norton has served as President and CEO of Norton Management, Inc., a consulting company in Alton, Illinois and Las Vegas, Nevada. Mr. Norton also currently serves as a Director of Centaur, Inc., a privately held company which owns a casino in Central City, Colorado and owns Hossier Park, an Indiana race track, located in Anderson, Indiana. Mr. Norton is also a Director of Colorado Casino Resorts, Inc. in Cripple Creek, Colorado and North East Resorts, Inc., a privately held company pursuing gaming in the state of Massachusetts. Mr. Norton recently became a Director of 8th Wonder International, Ltd., an entity formed in Jersey, in the Channel Islands, which is involved in the concept design and development of casino resorts. Mr. Norton is also a major creditor of and has provided consulting services to Onnam Entertainment, Inc., a privately held Las Vegas based company, with contracts to develop and operate Native American casinos in various U.S. locations. Prior to Hurricane Katrina, Onnam received permission from the Mississippi Gaming Commission to develop a casino site in Biloxi, Mississippi. The casino, if constructed, would compete with any casino resort subsequently developed by the Company. From 1993 to 1998, Mr. Norton served as President and Chief Operating Officer of Argosy Gaming Corporation, a public company and operator of riverboat casinos. Mr. Norton also previously served as President and Chief Operating Officer of the Sands Hotel & Casino in Las Vegas, Nevada; as President and Chief Executive Officer of the Gold River Gambling Hall & Resort in Laughlin, Nevada; as Executive Vice-President of Resorts International, Inc. and Resorts International Casino Hotel in Atlantic City, New Jersey; and as Vice-President, Treasurer and Comptroller of Paradise Island, Ltd/Paradise Island Casino. Mr. Norton has also previously served as a founder and a Director of the American Gaming Association; as a founder, a Director and Vice-Chairman of the New Jersey Casino Association; as Chairman of the Indiana Gaming Association; as a Director and Vice-President of the Missouri Gaming Association; as a Director of the Illinois River Boat Association and as Chairman of the Casino Commission of the American Hotel Association. Mr. Norton has also served on the Board of Directors and Executive Committee of the American Hotel Association; as Chairman of the Board and President of the New Jersey Hotel Motel Association; as Director and Vice-President of the Bahamas Hotel Association; as Chairman of the Bahamas Hotel Employers Association; as Director and Treasurer of the Bahamas Employers Confederation; as a Board Member of the Nevada Hotel Motel Association; as Chairman of the Atlantic City Convention & Visitors Bureau; as Chairman of the Nassau Paradise Island Promotion Board; and as a member of the Advisory Board of the Governors Office of Travel and Tourism in New Jersey.
Options Exercised
.
National Council of Legislators from Gaming States
Steve Norton, Director, American Gaming Association, Alton, IL
.

Some might think that at 75, Steve would be content to sit back, collect Social Security and count his millions. Not so!

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We should all be appreciative of Steve's efforts to save Massachusetts taxpayers money and protect our freedoms when he posts things such as his comments below because we know what great prosperity predatory gambling has brought to Atlantic City --

.

In today's article by Scott VanVoorhis, the question of NIMBY, not in my backyard, has a perfect example in New Jersey's gaming experiment. In 1976 a Statewide referendum would have allowed any community in the State to have gaming, subject only to a second County vote approving casinos. The vote was 60% to 40% against. But two years later, a Statewide referendum passes 57% to 43%, when gaming was restricted only to Atlantic City. [Sometimes, you just gotta wear 'em down before they vote your way!] I would expect similar results in Massachusetts. As several polls have indicated, a majority of State residents favor casino gaming, whether for their own enjoyment, to reduce the out flow of $1 billion to CT and RI gaming establishments, or just because of personal choice; where any Massachusetts adult ought to be able to decide how he spends his own earned income. [Wow! This man truly cares that we should be free to line his pockets!] What the State may want to consider is to have a vote in those communities that have an interested developer, before a special commission determines casion [sic] or racino locations. This step will save a lot of time in a State badly in need of new taxes, construction and employment.

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And Steve is soooo anxious to create low wage dead end jobs, he promises --

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...few positions would require even a high school diploma; unlike the bio-science industry the state is so vigorously pursuing.
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In response to Mr, Norton's op ed, I sent the following letter to the editor, not expecting that the casino cheerleaders would print it --

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I read with great interest the comments Kevin Thomas made about
the prospects of a casino in New Bedford and was impressed by
his research, his logic and his unwillingness to believe the one-sided
promotion of predatory gambling.
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Steve Norton's response fails to fully convey his interest. He can't
honestly be labelled a mouthpiece for the industry because he
IS the industry and stands to gain from promoting fictitious numbers.
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Forbes: Mr. Norton is also a Director of ... North East Resorts, Inc., a privately held company pursuing gaming in the state of Massachusetts.
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Mr. Norton promises "...few positions would require even a high school diploma."
In other words, you are guaranteed low wage, low skill, dead end jobs.
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We need jobs we can be proud of, where there's an opportunity for advancement,
promotion, jobs with a future that provide hope.
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Even Bernie Madoff gave people jobs, better paying than a casino job, with his phony prosperity scheme.....casino capitalism is the same rouse.
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Predatory gambling sucks discretionary income out of the local economy.
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Professor Kindt's research indicated that 1 slot machine permanently
removed 1 job from the local economy.
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We need a fair and balanced public discussion about predatory gambling.
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The more I learned about the experience of other states, the more
I understand how Mr. Norton accumulated his wealth by creating dead
end jobs that destroy the fabric of our communities.
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Mr. Norton doesn't live here and can count his millions from afar.

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Centaur defaults on loansHoosier Park parent company misses interest payment

Anderson, Ind. — Hoosier Park Racing and Casino’s parent company, Centaur LLC, missed an interest payment to its senior lenders Tuesday, causing the company to default on one of its loans.

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The lending situation won’t affect Hoosier Park’s operations or number of employees, however, said Jim Brown, the racino’s general manager of gaming.

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“Our customers can expect the same entertainment experience that they have come to expect from us, and there will be no impact on our employees,” Brown said. “It will be business as usual for Hoosier Park, regardless of how we go about restructuring our company.”
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Brown said the slot machines will not be tightened and rewards will not be reduced in the casino.
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With the missed interest payment, however, two of Indianapolis-based Centaur’s affiliated entities in Pennsylvania, Valley View Downs LP and Centaur PA Land LP, filed voluntary Chapter 11 bankruptcy petitions. Brown said the bankruptcy filings were designed to help Centaur keep its gaming permit in Pennsylvania, with which it plans to build another racino called Valley View Downs & Casino.
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“We have the last gaming license in Pennsylvania, and we are deeply committed to building that facility,” Brown said. “This was the best mechanism to preserve it.”
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In the meantime, Centaur continues to negotiate with its creditors to restructure its corporate debt. Brown said those negotiations would affect the company’s future actions.
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“We have numerous options,” he said. “Chapter 11 for the entire company is a possibility. This is simply an effort to redo a debt structure and make your company healthy and ensure the possibility of long-term success.”
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Centaur Chief Financial Officer Kurt Wilson said the company had been negotiating with its lenders since July. The company’s existing facilities, which include Hoosier Park and Fortune Valley Hotel & Casino in Central City, Colo., are healthy but not generating enough money to cover Centaur’s capital structure, Wilson said.
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Weakness in the economy and a heavy fee burden — Centaur paid $250 million for its Indiana license — has contributed to the existing facilities not being as profitable as needed, Wilson said, as has a delay in the Pennsylvania project that has held up cash flow from that location.
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The Pennsylvania project had been funded at the same time as Hoosier Park’s casino was built, but Centaur was unable to receive its Pennsylvania gaming license before credit markets froze and it was forced to give back the loan, Wilson said.
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“It has been stymied and delayed since then,” he said. “Now there’s an opportunity with this credit market thawed, it clears the path to move forward,” he said. “We filed Chapter 11 to protect the status of that license so we can continue uninterrupted. We believe it’s the shortest route.”
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Wilson said he believed Centaur could accomplish an agreement with its lenders soon. It is unclear how much the missed interest payment was for, as Wilson said Centaur’s finances are private, but the company does not have any principal payments on its loan until 2012.
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Brown said he hoped Centaur’s loan default doesn’t affect whether customers come to Hoosier Park.
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“Nothing will change,” he said. “I am optimistic that our customers will understand what this is. Everyone can expect a great time a Hoosier Park and for a long time to come in the future.”

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Centaur Lamenting Their "Bad Deal"

Centaur and others agreed to a $250 million licensing fee and other stipulated investments, but now cries foul?

Hoosier Park challenges bankruptcy claim


ANDERSON — Hoosier Park Racing & Casino is in no imminent danger of bankruptcy, say officials with its parent company, Centaur.

Without parity in Indiana gaming, however, its financial future is uncertain.

“If we fail at every turn... is it a possibility out of 20 possibilities?” said Centaur Chairman Roderick Ratcliff. “It is a possibility.”

Ratcliff said under no circumstances would Hoosier Park close its doors. His comments came after State Sen. Luke Kenley, R-Nobleville, in a televised report, essentially predicted bankruptcy for Hoosier Park due to trouble repaying two large bonds.

Centaur borrowed heavily in order to pay a $250 million licensing fee to Indiana and to fund the construction of its 92,000-square-foot casino. The televised report on Wednesday suggested that Hoosier Park has two large bonds due within 90 days, which Ratcliff characterized as “incorrect,” saying its first loans are due in 2012.

He framed Hoosier Park’s financial troubles in the larger context of excessive taxation.

“The model set up for the racinos today does not work,” Ratcliff said. “Even without the $250 million license, we would be unable to compete.” Jim Brown, general manager of gaming at Hoosier Park, said the Anderson racino and Indiana Live Casino in Shelbyville are taxed at a rate of 47 percent, while Indiana’s riverboat casinos are taxed at 35 percent. They have lobbied legislators to level the playing field and the matter is under consideration by the Gaming Study Committee. Kenley chairs the committee, which will meet again on Oct. 19.

Ratcliff said a study undertaken by the Kelley School of Business at Indiana University found that a $125 million licensing fee would be appropriate for a casino based at Hoosier Park. Given the crushing debt it incurred to pay twice that amount, Ratcliff said paying $250 million was a mistake.

“Do I regret it? Absolutely,” Ratcliff said. “I regret agreeing to $250 million.”

Indiana Gaming Commissioner Ernie Yelton previously told The Herald Bulletin that without financial relief, the bankruptcy of Hoosier Park Racing & Casino is “imminent.” Joe Gorajec, executive director of the Indiana Horse Racing Commission, said he is not familiar with Hoosier Park’s financial status and has received no paperwork to suggest a bankruptcy.

“We’ve received nothing from Hoosier Park,” Gorajec said. “I’m not aware of any scenario whereby the track would discontinue operations.”

Ratcliff and Brown said Hoosier Park’s business is actually very healthy. Relieved of the burden of debt and excessive taxation he said he believes the facility can thrive.

“We’re very optimistic that the capital structure is going to get re-worked,” Ratcliff said.