Former Spectacle Entertainment Chief Executive Officer and Chairman Rod Ratcliff, previously chief executive officer at Centaur Gaming, recently reached a settlement agreement with the Indiana Gaming Commission. Under the agreement, Ratcliff has been permanently banned from the state’s gaming industry and must sell his ownership in the Majestic Star casinos in Gary; as a result he no longer has an interest in Spectacle Gary or Spectacle Entertainment.
Ratcliff is selling his shares to Hard Rock International and Spectacle Entertainment partner Greg Gibson, who took over ownership last year from Spectacle of the new Hard Rock Rocksino being built in Terre Haute. In Gary, Spectacle now operates the Majestic Star I and Majestic Star II casinos on Lake Michigan and is partnering with Hard Rock to construct a $300 million land-based casino to replace the riverboats.
In December, Sarah Tait, the executive director of the Indiana Gaming Commission, ordered Spectacle to stop moving equipment from the Gary riverboats to the new land-based facility “until further notice.” The land-based casino had been expected to open this spring, but commissioners previously told Spectacle to continue operating the riverboats in Gary until at least June.
The gaming commission began investigating Spectacle and Ratcliff in January 2020 following federal allegations that a longtime Ratcliff business partner, former Spectacle Vice President John Keeler, illegally funneled casino company money to a former state lawmaker’s unsuccessful 2016 Republican congressional campaign.
Ratcliff resigned as chief executive officer at Spectacle Entertainment in June 2020 but maintained an ownership stake in the company and headed investor relations. The gaming commission temporarily suspended Ratcliff’s gaming license in December. In January, Ratcliff sued the commission over that action and also argued that the commission was trying to force him to sell his Spectacle shares to Hard Rock. According to the lawsuit, Hard Rock made two offers to buy Ratcliff’s shares but Ratcliff considered them to be too low.
Tait said, “With little progress from the parties in resolving their regulatory problems at the end of January, the commission required Hard Rock and Spectacle to participate in mediation, one of our last remaining available tools. We’re pleased the mediation was successful and the parties were able to reach an agreement that satisfies the commission’s initial concerns.”
Last month the commission permanently revoked Ratcliff’s gaming license after discovering he allegedly made unauthorized executive employment offers to various individuals; kept control of Spectacle finances after resigning from his company positions; failed to provide the commission with required disclosures or cooperate with its investigation; and did not report $900,000 in deposits to Ratcliff’s horse wagering account between 2015 and 2019, plus the resulting wins and losses.
Under the agreement, Ratcliff may not challenge or appeal the order. He also agreed to drop his lawsuit against the gaming commission.
In a statement, Ratcliff spokesman Robert Vane said Ratcliff is glad the state has stopped its “unfair persecution.”
“With this settlement agreement,” said Vane, “Rod achieves what he wanted from the very beginning of this ordeal—to retire from Indiana gaming on his own terms. Mr. Ratcliff’s career in Indiana has resulted in the creation of thousands of jobs for Hoosiers, millions of dollars of economic activity and significant charitable investment in local communities. Rod’s standing as a true pioneer in the gaming industry remains unmatched.”
The gaming commission still is investigating Spectacle, which is required to notify the commission if Ratcliff tries to acquire, purchase, own, possess, directly or indirectly benefit from the company or its related entities. However, in exchange for Ratcliff agreeing to completely divest his ownership interests and permanently leave the Indiana gaming industry, the gaming commission agreed it will not pursue any further administrative or legal action, including fines, against Ratcliff.
Tait said with the Ratcliff situation resolved, she doesn’t have to worry about the gaming integrity concerns that led her to delay the opening of the Hard Rock Gary. She said she’s now is prepared “to dedicate commission staff and resources to an expeditious opening. This project is important to the city of Gary, the state and the Majestic Star employees and their families.”
Hard Rock International Chief Operating Officer Jon Lucas said the company is “excited to put this chapter behind us and look forward to working with the Indiana Gaming Commission and our partners to bring this amazing project to fruition in the next few months. Our grand opening date will be announced in the near future.”
The 200,000-square-foot Hard Rock Casino will offer 1,650 slot machines and 80 table games, sportsbook and bar, five restaurants including a Hard Rock Café, Rock Shop retail store and a 1,954-seat Hard Rock Live concert venue. A Hard Rock Hotel featuring 200 to 300 rooms will be added within a couple of years, Lucas said.
