In the aftermath of a lengthy investigation, a federal indictment recently charged Spectacle Entertainment Vice President John Keeler and former Republican state Senator Brent Waltz with scheming to direct more than $25,000 in illegal corporate contributions through phony donors to Waltz’s unsuccessful 2016 congressional campaign.
In January, political consultant Chip O’Neil, president at Strategic Campaign Group, pleaded guilty in the Eastern District of Virginia to recruiting 15 people, including three of Waltz’s relatives and a business associate, to make maximum contributions of $2,700 to the Waltz campaign, for which they were repaid from $80,000 that originated from Spectacle Entertainment.
Earlier Keeler and Spectacle Chairman and Chief Executive Officer Rod Ratcliff were forced to sell their ownership stakes in Spectacle Jack LLC, then a Spectacle subsidiary, in the planned $125 million Rocksino Terre Haute casino to Terre Haute businessman Greg Gibson. Ratcliff, who is not named in the indictment and does not face any criminal charges, resigned his Spectacle positions in June but retains a share of ownership in the company.
Keeler was charged with one count of conspiracy to make illegal corporate contributions, false statements and to obstruct justice; one count of making illegal corporate contributions; one count of obstruction of justice; and one count of making false statements. Waltz was charged with one count of conspiracy to make conduit contributions, false statements and to obstruct justice; one count of making and receiving conduit contributions; one count of obstruction of justice; and two counts of making false statements.
Ratcliff and Keeler, a lawyer and former Republican state legislator, formed Spectacle after their company, Centaur Gaming, sold Indiana’s two racinos in Anderson and Shelbyville to Caesars Entertainment in 2018 for $1.7 billion. Spectacle then purchased the Majestic Star I and II casinos on Lake Michigan. Last year Ratcliff and Keeler successfully lobbied the legislature for permission to move the Majestic Star casino in Gary; the company is constructing a $300 million land-based casino to replace those riverboats.
Keeler’s casino license was suspended by the Indiana Gaming Commission and Spectacle said it was placing him on administrative leave. Commission Executive Director Sara Gonso Tait said, “This matter is extremely serious. The ability for this company to continue to hold an Indiana gaming license is in question. The gaming commission will continue to work with federal agencies to ensure that all individuals associated with Indiana casinos are held accountable for any unlawful acts.” Tait added the commission will conduct its own investigation into Spectacle Entertainment and former Centaur Gaming executives. She added, “To say the allegations outlined in the court documents are disappointing is a vast understatement. Mr. Keeler’s indictment and the separate suitability matters under investigation by our agency create an unprecedented set of negative circumstances.”
Last year, Indiana Governor Eric Holcomb faced a state ethics review in regard to his dealings with Ratcliff. According to the Indianapolis Star, Ratcliff provided Holcomb with private jet flights in 2018 to Republican Governors Association meetings in Colorado and Arizona. However, the state inspector general concluded the flights were provided to the governor’s group rather than Holcomb’s office. The flights were among $500,000 Ratcliff and his companies contributed in 2018 to the Republican Governors Association, which gave Holcomb $7.6 million of the $14.5 million he spent on his 2016 election campaign.
Meanwhile, Gibson announced ground will be broken this fall on the Rocksino Terre Haute casino. Plans include a non-smoking casino floor with 1,150 slot machines and 50 table games; four restaurants including a 125-seat Hard Rock Cafe, buffet and steakhouse; a sportsbook; high-limit lounge; velvet Sessions 300-seat entertainment venue; and Rock Shop gift shop. Construction is expected to take 16 months.
Previously Gibson said he had little interest in owning a casino but considered it an opportunity to boost economic development. “This process has been a long journey for us, and today marks an important step down a path toward a successful opportunity for many Hoosiers. Seeing an opportunity to bring a transformational project to Terre Haute and Vigo County is what excited, and ultimately sold me on being involved in this project.”
Gibson said Spectacle Jack will pay 3 percent of its adjusted gross receipts to the nonprofit Vigo County Community Improvement Foundation Inc., for an estimated $3 million annually. Terre Haute Mayor Duke Bennett said, “Just this one project is going to have an impact in so many different ways. It puts us on the map in a very special way and the revenue that’s going to come back into the community will benefit everyone, regardless if you go to the casino or don’t go to the casino. It couldn’t be any more exciting from my perspective to get to the point we’re at today as it’s taken many, many years to get here.”
