Spectacle Entertainment recently shut down the Majestic Star Hotel in Gary, Indiana. The venue was built in 1998 by the Trump Organization. Jahnae Erpenbach, Spectacle executive vice president of operations and Majestic Star Casino general manager, said the hotel was closed due to steadily declining occupancy and would have required immediate, significant renovations to bring it up to Spectacle’s standards.
Also, Erpenbach noted the Majestic Star casinos will relocate in the next few years to a new, land-based facility adjacent to the Borman Expressway, which officials recently announced will be managed by Hard Rock International
“Closing the hotel will allow us to invest all of our available funds to enhance the existing casinos,” Erpenbach said, including adding new slot machines, table games and sports wagering. The venue also will reconstruct its original, impressive entrance. “Bringing back the popular porte-cochere entrance will provide a beautifully lighted area for our valet services, a warm welcome for guests upon arrival and direct access to the Harbor View Buffet and Lakeshore Lounge,” Erpenbach said.
Meanwhile, Spectacle Entertainment and Hard Rock International announced the estimated cost of the new Gary venue will increase by one-third to $400 million with the addition of numerous restaurants and bars, a Hard Rock Cafe and a Hard Rock Live concert venue.
Hard Rock International Chairman and Chief Executive Officer Jim Allen said, “Hard Rock is excited to partner with Spectacle Entertainment to create the first land-based gaming destination, bringing our world-class brand of entertainment to Northwest Indiana and the greater Chicago area.” Spectacle Chairman and Chief Executive Officer Rod Ratcliff added, “We’re confident this $400 million investment will serve as a significant catalyst for the continued economic revitalization of Northwest Indiana and the city of Gary.”
Ratcliff said the development will create 1,000 temporary construction jobs and 2,000 permanent jobs—more than double the 800 current employees at the two Majestic Star casino boats.
Spectacle Vice President Greg Gibson said the Hard Rock partnership will enhance the company’s bid for the new Terre Haute casino license. “Hard Rock and Spectacle Entertainment’s additional partnership to compete for the Terre Haute site would provide more stability for the economy and workforce in central Indiana, including more than 500 much-needed job opportunities.”
The Indiana General Assembly approved a casino in Terre Haute pending the outcome of the November 5 referendum in Vigo County. If voters approve a casino, the Indiana Gaming Commission would select the operator from all qualified applicants, including Spectacle and possibly Full House Resorts. A $100 million investment would be required.
Terre Haute business leaders recently formed the Advance West Central Indiana Political Action Committee to “inform and educate the community” about the benefits of a casino, said committee Chairman John Collett. He said the PAC hasn’t set a firm fundraising goal but it will take six figures to “do it the right way.”
