The UNITE HERE Local 1union, representing more than 15,000 hospitality workers in Chicago and northwestern Indiana, said Pinnacle Entertainment’s plan to sell Ameristar Casino in East Chicago to Gaming and Leisure Properties Inc., a real estate investment trust, and lease it back through Pinnacle’s subsidiary, PNK Entertainment Inc., violates state law allowing a company to own only two casinos.
The union filed a petition for review in Lake County Circuit Court requesting a stay of the state gaming commission’s permission to sell the boat or a preliminary injunction. The commission previously found the sale does not violate Indiana’s two-casino rule since GLPI does not operate the casinos on its real estate holdings in Indiana. GLPI owns the Hollywood Casino in Lawrenceburg and has been approved to purchase the real estate at the Belterra Casino in Florence.
Union officials said the sale would harm members because the lease payments could take away money that could be used for higher salaries and benefits, resulting in fewer jobs.
