The Indiana Supreme Court has denied the city of East Chicago's bid for a court order to route millions of casino dollars back to the city. The justices also ruled the Indiana Gaming Commission can alter the agreement that funnels riverboat gambling money to two private groups.

Lawyers for Second Century and the Foundations of East Chicago declared the court's 21-page mixed decision Tuesday a victory in the long-running war over casino funds.

MORE:Read the Indiana Supreme Court's ruling on the case.

The fight centers on a deal sealed by former East Chicago Mayor Robert Pastrick to route casino money to the nonprofit Foundations and Second Century, a for-profit company run by Pastrick allies. Current Mayor George Pabey wants those economic-development funds back under city control.

The court's decision not to order the funds shifted to the city means the Pabey administration was "the big loser" in Tuesday's decision, said J. Lee McNeely, a lawyer for Second Century.

"The court agreed with us," McNeely said. "In fact, the supervisory authority over this agreement is the Gaming Commission, and we're comfortable with that."

Neither the city's private lawyers nor city officials returned calls for comment Tuesday.

Indiana Attorney General Greg Zoeller, who has pushed for Second Century to disclose how the company spent $16 million in casino funds through 2006, said through a spokesman that he and his staff had not fully digested the opinion Tuesday. But Zoeller said he believes the ruling supports arguments the casino agreements should be "accountable" to the city and the Gaming Commission.

"The attorney general�s office continues to pursue greater transparency and accountability over the casino funds that are intended for economic development to benefit the citizens of East Chicago," Zoeller said in a statement.

The decision's centerpiece is the ruling that the Gaming Commission can alter the agreement that sends cash to the controversial groups. Under the deal signed in 1994, 3.75 percent of the casino's annual revenue goes to economic development. The city gets 1 percent. The two nonprofit Foundations of East Chicago each take a 1 percent cut, and a 0.75 percent subsidy goes to Second Century, a firm created to build affordable housing.

Peter Rusthoven, a lawyer for the Foundations, said Tuesday his clients are "fine" with the Gaming Commission's overseeing the agreements. Second Century's lawyer, McNeely, said the for-profit -- run by Pastrick allies Thomas Cappas and Michael Pannos -- is "perfectly prepared" to address the agreements with the Gaming Commission.

"Every penny is accounted for. There's nothing mysterious there," he said.

Gaming officials could not be reached Tuesday to explain what the ruling might mean for the commission.

The justices also ruled on a series of lower-court decisions from the case's Byzantine legal history. In its decision Tuesday, the Supreme Court remanded several counts to be heard in the Marion County trial court. The justices ruled that lower courts erred in using statutes of limitations to dismiss several of the city's claims against Second Century and the Foundations.

McNeely predicted a "lot more litigation" in the case.