Appellate Court Grants Indiana AG’s Friend of the Court Brief in Second Century’s Fight to Keep Casino Revenue Contract

August 9, 2007 -- INDIANAPOLIS, IN – The Indiana Court of Appeals has granted Indiana Attorney General Steve Carter’s request to submit a Friend of the Court, or Amicus, brief urging the court to deem a contractual agreement to channel riverboat gaming revenues to East Chicago Second Century (Second Century) illegal as a matter of public policy.

Carter submitted the brief last November in support of the City of East Chicago to the objection of Second Century and two non profit Foundations that receive a portion of East Chicago’s riverboat casino revenues for economic development. The City is appealing a Marion Superior Court ruling that upheld a 1994 agreement that paved the way for Second Century, a private business, to receive at least $16 million from casino gambling revenue. Since June, 2006, more than $1 million in Casino revenues has been deposited in escrow while the case is being litigated.

“It is important that the court have access and information to the state’s arguments in this ongoing saga of hide and seek with casino revenue meant for public benefit,” Carter said.

Following a request by the Indiana Gaming Commission to review the 1994 agreement, the Attorney General’s Office intervened in the lawsuit filed by Second Century against RIH Acquisitions, IN, LLC (d/b/a as Resorts East Chicago), which owns the East Chicago riverboat casino, and the City of East Chicago. Second Century sought a court order that the casino gambling revenue payments to the private corporation could not be terminated. As he is now doing before the Indiana Court of Appeals, the Attorney General argued to the trial court that the Second Century agreement is void as a matter of public policy.

Carter states in the Amicus brief that, “The Second Century Agreement’s lack of accountability also contravenes public policy because it inherently undermines citizens’ trust in city government—and in particular a city government that has been plagued by scandals and corruption.”

Source: Indiana Attorney General

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