Majestic Star owner does not want to compete against himself
GARY | Casino owner Don Barden said he has no intention of giving up one of the two Indiana gaming licenses he holds in Gary.
Barden dismissed the possibility he'd combine his two Gary casinos, freeing up a gaming license.
"If we keep both licenses at Buffington Harbor, we will build two single-level vessels there," he said. "There will not be a license free and available."
Barden was responding to Gary City Councilman Roy Pratt, who earlier in the week had publicly urged state gaming regulators to give one of Barden's gaming licenses to another casino operator.
Barden said his company paid more than $253 million in 2005 to buy the former Trump casino, whose gaming license passed to Barden with the sale. "Obviously we want to keep it," Barden said.
The renamed Majestic Star II shares dock space at Buffington Harbor in Gary with Barden's original Majestic Star.
Pratt had urged that one of the two gaming licenses in Gary go to a casino owner other than Barden at a site on Interstate 80/94, spurring competition that would economically benefit the city of Gary.
Barden said it wouldn't make sense for him to move one of his casinos to an I-80/94 location, leaving the other at Buffington Harbor.
"It makes no sense to compete against myself," he said.
However, "If we find a site (on I-80/94) that is suitable from a financial standpoint, we'd move both licenses there," he said, but only if the city of Gary agrees to make infrastructure improvements to the site.
"Initial analysis demonstrates it's not feasible unless the city is willing to spend about $50 million (on infrastructure)," Barden said. "If the city's willing to do that, we'll certainly consider it."
A move to I-80/94 would mean abandoning plans for developing the Buffington Harbor site, and selling what is there, Barden said.
Previously promised infrastructure improvements to the Buffington Harbor site never were made, despite his casino company putting more than $290 million in city coffers over the years, Barden said.
Newly re-elected Mayor Rudy Clay said on Friday the city is willing to help Barden.
"I'm not saying to the tune of $50 million -- we don't have it," Clay said. "But the city is absolutely willing to help Don Barden."
Pratt, whose comments came at a Monday public hearing to help determine a routine license renewal of the Majestic Star, said Friday he remains convinced the second gaming license in Gary should go to a separate casino company.
Jobs were lost when Barden combined operations at the Buffington Harbor site, Pratt said.
"(Barden) doesn't need two licenses," Pratt said. "He doesn't want the competition, but it's killing the city of Gary."
Posted in Local on Sunday, May 20, 2007 12:00 am Updated: 10:07 pm.
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