In November, Las Vegas- based Caesars Entertainment announced it would purchase two Indiana racinos–Hoosier Park in Anderson and Indiana Grand near Shelbyville—for $1.7 billion. However, because the state requires $50 million in license transfer fees, Caesars said it may drop plans to build a new $90 million land-based casino to replace the Horseshoe Southern Indiana Casino.
Indiana law prohibits one company from owning more than two casinos in the state. Caesars already owns two casinos in Indiana—Horseshoe Southern Indiana Hotel and Casino and Horseshoe Hammond Casino. However, the rule does not apply to casinos at racetracks, which are authorized under a different law. If the sale proceeds, Caesars would control four of the state’s top five casinos based on revenue.
The Horseshoe Southern project was supposed to be discussed at the commission’s March 8 meeting. On March 2, Timothy Donovan, executive vice president, general counsel and chief regulatory and compliance officer for Caesars, wrote in an email to Indiana Gaming Commission Executive Director Sara Gonso Tait, “Caesars is now facing some very difficult decisions with regard to its proposed $90 million investment in southern Indiana.” He added Caesars would have preferred not removing the sale from the commission’s March 8 agenda, “but at this point we may have no choice given the continued uncertainty surrounding the $50 million transfer fee.” Donovan wrote that the company did not expect to “be approaching the eve of our public announcement of the Horseshoe Southern Indiana project without knowing whether we would also face a $50 million transfer fee.”
Caesars argued the state fee should not apply. The Indiana Gaming Commission and the Indiana Horse Racing Commission will review the issue in May or June.
