Attorneys for the UNITE HERE service union say the sale of two Indiana casinos to Gaming and Leisure Properties (GLP) would violate state law and wants to stop the transfer.
The Belterra and Ameristar East Chicago casinos in Indiana are among 14 Pinnacle Entertainment agreed to sell to Gaming and Leisure in five states. Pinnacle then would lease-back and continue operating the properties.
UNITE HERE has been trying for years to sign up employees at Ameristar East Chicago, but failed. This move is seen as a means to pressure GLP to hold a card-check election.
UNITE HERE claims the sale violates Indiana law, which says “a person may not have an ownership interest in more than two riverboat owner’s licenses,” and filed a petition seeking to stop the transfer.
UNITE HERE says the proposed sales “would cause GLP to exceed the state statutory limit on concentration of casino ownership, which limits any owner to two casinos, as GLP already owns one casino in this state and the acquisitions would bring its ownership to three casinos.”
Gaming and Leisure Properties already owns the Hollywood Lawrenceburg casino in Indiana, which is run by Penn National Gaming, UNITE HERE says.
Gaming and Leisure Properties last summer announced it agreed to acquire 14 of Pinnacle Entertainment’s 15 casinos and lease them back to Pinnacle under a master lease agreement. The Indiana Gaming Commission in February approved granting transfer of ownership interest in two Indiana casinos owned by Pinnacle Entertainment.
Whether or not UNITE HERE succeeds, Pinnacle Entertainment and Gaming and Leisure Properties still need regulatory approvals in four other states before going through with the deal.
It also needs approval from shareholders of both companies.
