An recent story in the Indianapolis Star reported in the past two years, Indiana lawmakers regularly failed to list any expenses or in-kind contributions for at least 20 fundraisers at a downtown off-track betting facility called the Winner’s Circle, owned by Centaur Gaming. Centaur had lobbied legislators to allow live table game dealers at its two racinos in Anderson and Shelbyville; last month the legislature voted to allow live dealers starting in 2021.
In addition, according to the Star article, lawmakers also listed in-kind contributions of $500-$1,100 from Centaur lobbyist Jim Purucker in 10 other instances.
Former state legislator David Orentlicher, a law professor at Indiana University’s McKinney School of Law, said, “It certainly undermines the spirit of the law if your goal is to make sure lawmakers are not influenced by campaign contributions from casinos. If this is not a violation, it shows the law is not written the way it should be.”
Indiana law bans campaign contributions from casinos, as well as in-kind gifts including food, drinks and event space. Violations are considered felonies, punishable by a $10,000 fine and up to 18 months in prison. The law banning casino contributions applies only to the business, its officers and owners. It does not apply to contract lobbyists for casinos. Another state law prohibits giving in the name of someone else.
Most of the political fundraisers held at the Winner’s Circle occurred in its members-only Triple Crown Club, a private lounge with a cigar humidor. The facility concierge said rent for part of the space is $250, which is waived if the party spends more than that on food and beverages. Centaur’s general counsel, former state legislator John Keeler, said the company charges candidates market rate for food, beverages and use of the facility. Keeler stated Centaur is “very careful” not to contribute to candidates. “We take that very seriously. I can’t tell you how many times someone says, ‘Can you host this and throw in the food and booze?’ We don’t give anything away for fundraisers,” he said.
State Rep. Sheila Klinker said she held a fundraiser in May 2014 at the Winner’s Circle because Centaur Chief Executive Officer Rod Ratcliff asked her to. “He asked if we would have fundraisers there so people would come in and see it. He is very kind about that, but he doesn’t give any money. He’s been very good about not doing that. I think a lot of people go there because it’s simple and easy. It’s close to the Statehouse, and there is parking in the later part of the afternoon.” Klinker said she would have to find out who actually paid for the event.
Other lawmakers said they could not remember who paid for their fundraisers, or that not reporting them was an oversight. Several said they plan to file amended campaign finance reports. All of those involved emphasized they were not trying to hide anything and were not influenced by Centaur or Purucker.
State Rep. Chuck Moseley said, “They never came to me and asked me for any special favors or consideration regarding any gaming legislation. I’ve always voted for what I think is best for Indiana.” Moseley held two fundraisers at the Winner’s Circle in April 2014 and October 2013, but his campaign finance report does not indicate who paid for them, although he said it probably was Purucker.
Senate Minority Leader Tim Lanane who promoted the live-dealer provision, also did not list any campaign expenses or in-kind contributions for fundraisers he held at the Winner’s Circle in 2013 and 2014. He said Purucker paid for the events, not Centaur. “I plan to file an amended report. I’ll take the total blame for it,” Lanane said. And state Senator Ron Alting, chair of the Senate Public Policy Committee, which oversees gaming issues, listed no expenses for his August 2013 fundraiser at the Winner’s Circle. He also said he could not remember who paid for the event. “I can only remember what I did yesterday,” he said.
Purucker said he paid for the fundraisers personally, and not with money from Centaur. He provided the Star with credit card statements showing payments to the Winner’s Circle. “I hope in every instance I give the number back to the lawmakers so they can list it as an in-kind contribution,” he said. He stated he could not explain why lawmakers listed no in-kind contribution from him for at least 20 of the Winner’s Circle fundraisers. “I don’t know what happened. There was a breakdown someplace. To the extent we had a breakdown, it will certainly get unbroken in the future,” he said.
Centaur’s lobbying strategy is working, said former federal election Commission lawyer Larry Noble of the nonprofit Campaign Legal Center in Washington, D.C. “They are using their lobbyists to influence candidates in a way they aren’t allowed to directly. Even if they did it all correctly, you still have that appearance that the lobbyist is acting on behalf of the casino. That’s exactly what the casino and the lobbyist want, and they know that’s how the candidate will perceive it. In the candidate’s mind, they’re one and the same.”
Julia Vaughn, policy director for Common Cause Indiana, noted, “Lobbying laws, campaign finance, Swiss cheese. They have a lot in common.”
