East Chicago Foundation Sues Marion County to Keep Casino Cash

On May 6, 2007, the nonprofit receiver of the $6 million in yearly casino payments has filed a case against the city to keep the source of the money open.

The nonprofit concerned, the Foundations of East Chicago Inc. filed a case against Marion County Superior Court.

The charity is seeking to place a permanent injunction against the addition to the state budget which would have allowed the city and not the charities to get a 2% increase in casino profits annually.

The 11 count case filed before the Indianapolis legal organization, Barnes and Thornburg, against the city and the Indiana Gaming Board stated that the additional budget item is in violation of some provisions in both the Indiana and United States constitutions.

The executive director for the foundations said that the clause was inaccurate, mainly because it was added at the last minute so it was not reviewed or debated properly.

The clause on page 225 of the 227 page state budget clause, which was passed on April 29, 2007, allows the City Council to nullify the 10 year old agreement in which the gaming profits are paid directly to the E.C. foundations if the gambling casino is sold.

The sale of the Resorts East Chicago to the Ameristar Casinos Inc. in Nevada was announced to the public in April and is expected to be approved this fall.


18 June, 2007