Caesars to Pay $1 Million Fine

  • By
  • Published
  • Est. 3 minutes

Caesars Entertainment has agreed to pay a $1 million fine after attempting to go without paying their licensing fee.

Or maybe the fine is for threatening to drop their casino project. The story is a little convoluted. The casino did not want to pay a $50 million transfer fee and threatened to drop their casino investment if they had to pay it. Now, the company pays a fine in addition to the transfer fee.

Caesars Entertainment is going to pay the fine. They are also owners of Hoosier ark and Indiana Grand, two racinos, racing and casino locations. Hoosier Park is in Anderson, Indiana. Indiana Grand is located in Shelbyville. The Indiana Gaming Commission required a $50 million fee for the ownership of the two racing-casinos to be transferred to Caesars.

Caesars felt the fee was too high, but under Indiana gaming law the initial owner of any gaming venue has to pay a transfer fee, if the controlling interest is sold. Caesars stated Centaur was the company that had the two venues, once the original owners went bankrupt, which would mean the transfer fee should be waived. The Indiana Gaming Commission did not agree with the interpretation of the law by Caesars.

Instead, the commission stated the fee needed to be paid or the acquisition would not go through. Tuesday, June 26, 2018, the Indianapolis Business Journal stated parties working on a deal with Hoosier Park or affiliates would need to pay the transfer deal before the closing took place. The Indiana Gaming Commission did sign off on Caesars acquiring the two casinos. It is unknown whether they finally paid up on the $50 million.

But, there was a hint that Caesars might pull out due to the high amount of the transfer fee, which would have taken $90 million in construction away from Indiana. Caesars was planning to move the Horseshoe Southern Indiana Riverboat Casino to a land-based location. The Indiana Gaming Commission was not happy with the threat, which is where the $1 million in fines come into place. The chief regulatory compliance officer finally got the rest of Caesar personnel on board to settle and get the project going so as not to lose any more money on the deal.

Stepping Back into March

In March it was revealed that Caesars Entertainment was hesitating over paying the huge transfer fee. The fee is to pay for the two racing casinos, which they spent $1.7 billion to purchase.

Leave a Reply

Your email address will not be published. Required fields are marked *