The General Scheme. While the authorization for 10 riverboats (11 in theory, but the Patoka Lake boat is unlicenseable) came about as a result of bald political power plays and compromise five years ago, it turned out to be a brilliant economic move for the state, host communities, and those lucky enough to become licensed riverboat operators. Rather than adopt a free-market philosophy (as some southern states did) and license any boat that met minimum qualifications, the State of Indiana limited the number of boats on the Ohio River and Lake Michigan, and ultimately limited boats to one per county. That meant that we did not have to experience the unpleasantness associated with boats coming to a community amidst considerable promise, only to pull up anchor and sail away a few months later when revenues didn’t match expectations because of competition. Actual experience is showing that Indiana’s limited licenses will ensure that each boat—and community—will have at least a baseline sustainable level of gaming revenues and resultant tax monies.

Also important is that each boat is (at least arguably) on the state’s border, encouraging out-of-staters to spend their money, and not attracting a captive local audience as would be the case with, for example, an Indianapolis boat.

We would be remiss if we didn’t highlight the work of the Indiana Gaming Commission in the licensing process and in regulating the boats. The per diem commissioners spent long and thankless days and weeks in licensing hearings, making decisions that often had to come down to gut feelings separating a passel of top-notch competitors. The Gameboys’ decisions have been widely second-guessed, but they have licensed no weak sisters, and the process remains scandal-free. They also persuaded—or even strong-armed—applicants into making better deals with their host communities.

Staff, led by Jack Thar, has been praised nationally for their oversight and innovation. Indiana has moved from a state which relied on others for advice and information to one in which other regulators are now looking for the same. Thar has also been instrumental in educating key legislators as to the bottom-line needs of regulators and the industry, and has been widely viewed as a straight-shooter by legislators.

Government Revenues. Tax revenues have clearly exceeded all expectations. With arguably the highest effective tax rate in the nation for casinos, the government is definitely profiting from the boats. As documented elsewhere, Indiana rakes in more money from riverboat casinos than any other state in the country. Wagering and admissions taxes alone through May 31, 1998 totaled about $525 million, with 1998 taxes alone potentially topping out close to $350 million. The boats are also paying property taxes on boats and facilities (in some communities, they are among the top five property taxpayers), and effectively paying full freight for their regulatory costs.

Indiana Attorney General Jeff Modisett (D) last week officially put the kabosh on Internet gambling—from both ends.

In Attorney General Official Opinion No. 98-8, Attorney General Modisett examines a question posed to his office by Commissioner for Higher Education Stan Jones. Former legislator Jones is concerned about gambling on college campuses—and the increasing extent of Internet gambling, for which youth and college students are likely among the most prolific players.

Modisett, who chairs the Indiana Gambling Impact Study Commission, tells Jones that the legality of Internet gambling in Indiana "hinges upon the interpretation of State statutes regulating gambling generally." He notes that Internet gambling is not specifically permitted by law, and that Indiana criminalizes gambling that is not so expressly provided for by statute. While some Hoosier Lottery offerings are referred to as "on-line" games, the AG notes that the phrase in this context means games for which tickets may be purchased from participating retailers—not games conducted over the Internet.

"Because non-regulated gambling is not expressly permitted by law, it is a criminal act for both parties to a gambling transaction, the provider and user," Modisett finds. "It is inescapable ... that an internet-gambling Hoosier—sitting at her computer, her feet firmly planted on Indiana soil, and her credit-card number close at hand—is doing the things necessary to gamble unlawfully in Indiana. For that Hoosier to gamble over the internet from her home, officer, or favorite tavern is not legally or practically different from wagering over the telephone. That is true even if the person (or computer) taking the bet is in an exotic location." The Opinion also posits that "for the various ‘virtual’ card games, slot machines, and other games of chance, the internet is a "gambling device’ under the Indiana Code ...."

He suggests that an Internet gaming provider may potentially be prosecuted for "unlawful gambling," "professional gambling," or "promoting professional gambling," and that "when a provider seeks to transact its business over the internet by soliciting and accepting wagers from Hoosiers, it submits itself to personal jurisdiction in Indiana courts."

Legislators rightfully point to the state’s $1.8 billion surplus as evidence that the riverbooty is superfluous . . . but try telling that to anyone who bought a new or late-model car or truck in the past two years. The use of gaming revenues (including lottery bucks) to slash the hated motor vehicle excise tax has been perhaps the most visible and welcome statewide evidence of the boat bucks.

Far more important than the statewide tax revenue is the cash coming to communities. Communities were barred by law from replacing tax revenues with riverbooty, but host cities and counties are nonetheless profiting from their relationships with the boats, mostly by spending bucks on one-time projects. Rising Sun’s budget has soared with the infusion of casino cash. Gary is using some of the money to hire more police and buy more police cars. Hammond is devoting some of its money to infrastructure rebuilding. East Chicago is spending some of its allocation on affordable housing. Evansville has leveraged some of its monies toward downtown development. Michigan City was able to improve park and marina facilities. Every community has benefited tremendously from the new revenues.

All that revenue may pose a problem. As anti-gaming advocates have accurately pointed out, no one now wants to kill the golden goose. Try to take away the bucks from any community, and you’ll be met with a wall of opposition. And even the expectation of another $150 - $275 million in state revenues annually makes balancing the budget or cutting taxes a whole lot easier, mega-surplus or not. Whether it is the argument of "preserving flexibility" in the budget, or avoiding harm to local governments who are benefiting from the funds, the bottom line behind the argument—preservation of gaming tax revenue—is prevailing.

Political and Social Impact. When riverboats were authorized, many people expressed concern that the gambling industry would become the new political and social Godzilla, owning local communities and buying influence statewide. Ain’t happened; ain’t likely to. Unlike the situation in other states, riverboat operators here were so gunshy about the fragile political coalition that won them the right to operate that industry contributions to politicians were almost non-existent, even before the loophole-ridden ban on industry contributions was enacted (we will soon have more to say about it). And even though there are means by which the industry can still contribute, such contributions have generally not been seen. While one may point to contributions from lawyers, lobbyists, accountants, consultants, etc. with riverboat ties and link them to the boats, these individuals or their firms also represent other clients and were probably contributing long before boats were a twinkle in anyone’s eye.

Riverboats have been about as active in the political process statewide as any other industry. They have an active lobbying effort, but no arms have been twisted to get anything new. Indeed, aside from a bit of minor tweaking here or there, the boats would prefer the status quo to remain intact. At the local level, 1999 will be telling. This will be the first round of mayoral elections since boats began operating in December, 1995. We saw riverboats be a major issue in mayoral elections in Evansville, Gary, Lawrenceburg, Madison, and New Albany in 1995, but we doubt that there will be much of an emphasis in 1999 (except, perhaps, with respect to questions about how the cities are spending some of their discretionary riverbooty).

There has been a great deal written in the popular press about Indiana riverboats and their lobbying activities, including the Marion County grand jury investigation that resulted in several indictments. While the sexy stuff centered on a contract that then-House Ways and Means Committee Chair Sam Turpin (R) had with an engineering firm that ended up doing riverboat work, that contract was entered into before the riverboat measure passed the General Assembly. And while some riverboat-wrongdoing was alleged under the deal, other non-riverboat related allegations were also well-reported. The media also seized upon the Indiana Lobby Registration Commission’s examination of the lobbying reports of the Indiana Gaming Association and its members, the Association’s reporting practices followed generally accepted reporting procedures to that point; the Commission has since issued an interpretation of the law that would require the kind of reporting it wanted from the Association. The draft of the highly controversial interpretation was soundly bashed by a plethora of statewide trade associations while the gaming trade group remained silent. While the investigations have not yet come to fruition, the only riverboat-related conviction obtained in five years has been the much-maligned quasi-electioneering charge that former U.S. Sen. Vance Hartke (D) pleaded to as part of his riverendum day schmoozing in 1993.

The social impact may be more difficult to measure. Riverboat management has become an active presence in community charitable circles, participating as major employers in civic activities from United Way to little leagues and cultural programs. Boat employees have pitched in to help flood recovery efforts in Southern Indiana and snow removal in Northern Indiana. Even the additional Indiana State Police troopers staffing each boat (and paid for by them) have been involved in such efforts, and also in other non-boat-related law enforcement work (such as aiding at accident scenes and ticketing unsafe drivers) while not performing their gaming detail work.

Even though several boats have now been operating for two or more years, we still remain in a honeymoon period of sorts. We’ve been able to benefit from the economic boost from boats, without experiencing the dark downside that the industry has seen elsewhere: problem gaming, bankruptcies, suicides, boats leaving town, and the like.

Then again, we’re wondering now if the Indiana experience may end up being unique, with a minimum of problems compared to other states. The boats have had an impact on the social fabric of the communities in which they are located, but so far, seemingly at least, in a positive sense. Law enforcement officials acknowledge increases in petty crimes and driving under the influence, but also point to the increase in police presence that may account for being able to detect more malfeasance. Boat security forces have helped public safety efforts in areas around the boats in Evansville, Hammond, and Michigan City.

Economic Impact. The boats have had a major economic impact on communities, much more so than upon the state. And the economic impact goes well beyond the tax revenues. No Hoosier riverboat project has come in at under $135 million, and at least two will spend upwards of $225 million when all work is completed. The latest unofficial estimates for the Caesars boat come in at an astounding $300 million.

And while state and local politicians have been criticized for years for their use of economic incentives to lure companies to the state (and to keep them here), as best as we can determine, not a single penny has been spent in incentives for the boats and their (as the Governor would put it) family-wage jobs.

The development of the properties has meant local construction jobs and lots of local purchasing even before boats open. And local purchasing continues to be strong once boats open. The minimum number of full-time equivalent jobs directly associated with a riverboat project appears to be about 1,200, with some above 2,000. Analyses prepared by the Center for Urban Policy and the Environment at Indiana University-Purdue University at Indianapolis show that the bulk of these jobs are local, and the vast majority have gone to Hoosiers. And the impact goes beyond just numbers. People in Dearborn County, Ohio County, and Switzerland County can now stay home and work, for example, rather than taking lower-paid jobs across the river in Cincinnati. Minority hiring has been a major success story (particularly in Evansville, where residents of certain wards were targeted for employment).

Are these the kind of jobs that the state should be creating? Arguably not. Indiana prides itself on being a leading manufacturing state, and the state puts its focus on bringing in the traditional high-wage manufacturing jobs. Service jobs are certainly less preferable. And when you ask Gary Mayor Scott King (D) which kind of jobs he would rather have in his big-city community, he’ll quickly tell you that he prefers the manufacturing jobs. But in his next breath he’ll bend your ear about how his city has seen perhaps the nation’s most severe exodus of high-paying industrial jobs as the steel mills have shut down or otherwise ratcheted down capacity. He’ll also tell you that the boats are creating jobs where people have otherwise been unemployed, and are creating reasons for people to stay in the community. And ask Switzerland County Council President Mike Jones (D) about the prospect for manufacturing jobs in his tiny rural county, and he’ll justifiably gripe about how state economic development initiatives have largely ignored his neck of the woods, and explain to you that what makes Switzerland County such a unique place to live— its rolling topography, beautiful hills, deep valleys, and remote Ohio River location—makes it so difficult for industry to economically site a significantly sized facility there. He’d rather have the industry, but his county simply can’t attract it. But he can get a boat and its 1,500 employees and a chance to rebuild his county’s infrastructure, from bridges that won’t support school buses to streets that are constantly under repair from flooding.

Public services have been bolstered thanks to the direct and indirect revenues. Emergency medical services and police and fire departments in every community with a riverboat have seen new and better equipment and facilities, more training, in most cases, more personnel.

Students have been awarded college scholarships by casino companies in Gary and Harrison County, and other Lake County and Southeastern Indiana schools and students have been helped by direct casino contributions. Even Ivy Tech has benefited, opening up new training programs for dealers and casino management—all offering further incentives for people to seek the American dream in their own hometowns (okay, maybe we are starting to lay it on a bit thick here).

There were high hopes for major spin-off activity as a result of riverboats coming to town. While small improvements have been made to downtown Evansville, Gary, and Rising Sun, the impact of boats on downtown areas has been minimal thus far. The boats have obviously not been economic saviors, but they have been a major tool in economic development. Some officials still hold out hope that new and improved roads created by the coming of the casinos will help improve chances for their communities to attract additional traditional economic development.

The synergy that has developed in some areas—most notably Lake County—with respect to tourism is encouraging. We have heard anecdotal evidence of some local restaurants closing their doors, allegedly because of cut-rate casino cuisine (Hammond and Michigan City), but we’ve also seen other local restaurants prosper (also Hammond) and new venues open after casinos come to town (Evansville and Rising Sun).

And let’s not forget the impact of casinos on the horse-racing industry. The 65¢ from each riverboat admission that went to the horse racing industry meant that there was more than $16.1 million to allocate to purses at Hoosier Park, the track itself, track advertising, and breed development. These monies helped to improve the quality of racing at Hoosier Park, in turn lifting the status of racing in Indiana, and, ultimately, helping to improve Indiana agribusiness through making it more likely that more people will breed and stable horses here, and non-Indiana horses will come to Indiana to race.

Impact on Other Gambling Activities. Other forms of gambling were expected to suffer as a result of the big, evil riverboats coming to town. Former Hoosier Lottery Director John Dillon predicted the demise of Hoosier Lottery profits when the boats came to town. A few years back he called the lottery’s offerings a "softer, passive form of gaming" that should not be confused the "hard core gambling" offered by casinos. After an FY 1997 decline in profits (attributed by most experts to an unusual dry spell in on-line mega-jackpots), FY 1998 lottery profits are on track for record revenues.

The Bingo and charitable gaming advocates came before the Interim Study Committee on Gambling Issues two summers ago and pleaded for changes in their laws because the out-of-state casino companies were poised to put the volunteer fire departments and humane societies and fraternal lodges and service organizations out of business. So what has happened? Record Bingo and charitable gaming revenues in FY 1996 and FY 1997.

Illegal electronic gambling devices seem to remain in widespread use, in spite of some entities busted for their illegal activity pinning the blame on local boats for busting them because the boats didn’t want the competition. And peashake games in Marion County appear to continue unaffected by the boats that are a minimum of a 2½ hour-drive away.

Bottom line. The State of Indiana hasn’t been transformed, positively or negatively, by riverboats. The economic benefits appear to be significant, and the social downside minimal, but that is perhaps largely attributable to where we are in the life-cycle of gambling. Riverboats haven’t taken over whole communities, nor have they proven to be the be-all, end-all savior for any community.

The boats have, however, proven to be solid corporate citizens that have invested huge capital sums and contributed in many ways to their communities. A better evaluation, of course, will come in a few more years, when all the boats have been up and operating for a longer period.

Where do we go from here? And what needs to happen for the boats to be viewed favorably in the future?

The flip answer that we’re tempted to serve up here is "more of the same." But it will take more than more of the same over the next few years for the boats to survive, thrive, and offer a positive impact here in the state. To paraphrase the late Barry Goldwater, the price of licensing is eternal vigilance.

State regulators should continue their oversight role, understanding that along with their mandate to ensure that the casinos toe the line comes a duty to ensure responsible economic development. Changes should be gradual, rather than sudden. Changes should take into account the reality of the riverboat environment in Illinois, and the land-based casino environment of Michigan and perhaps, Northern Indiana. As we approach the mid-life of some gaming licenses, the Commission must begin to establish ascertainable standards under which re-licensing will occur.

The media must be responsible, presenting both the pros and cons of gaming, and avoiding judgmental choices that should be left to individual Hoosiers. The media must recognize that state-sanctioned gambling is: (1) the public policy of the state, as passed by the legislative branch (and done so emphatically over the veto of a governor) and reinforced by rulings of the judicial branch; (2) a major economic development and revenue generation too for the state and its communities; (3) practiced by the vast majority of Hoosiers; and, (4) a concept that many Hoosiers also feel morally uncomfortable with. The media should ensure that the uncensored facts are put before the public so that people may make up their minds based upon more than just emotion—emotion that some contend is generated by the media to begin with.

Indiana’s remaining two Ohio River boats must open with at least the same degree of project quality, employee training, and commitment to the community that their brethren have set the standard for over the past three years. The existing boats must continue to maintain at least their current level of performance in terms of revenues, cash to the state and communities, and jobs. The boats must continue to improve their existing properties (and the Empress, Trump, and Blue Chip hotels must also open). They cannot let their standards down, in terms of employee hiring, security, local purchasing of products and services, adherence to regulatory and safety standards, and quality of the facilities and boats themselves. Out-of-state corporate parents should not be allowed to view Indiana management service as a mere training ground for other operations, but rather should seek to bring in experienced managers who appreciate the Hoosier lifestyle and understand and respect what their companies mean to the communities. The companies must remain respectful competitors and not drag themselves down by degrading the boat in the next county, or engage in mindless marketing campaigns that are destined to undercut the stability of a market in an effort to achieve a better market share. The boats must work with community businesses and other tourist attractions, and not at cross-purposes.

The riverboat operators must undertake a proactive industry wide effort to promote responsible gambling and to work closely with the state to ensure that those who cannot help themselves get help. The Indiana industry must be prepared to respond to charges—scurrilous or not—before they become accepted as fact. Gamers cannot simply ignore the activities of and statements by anti-gaming advocates, or dismiss them as "kooks." Much of what they say is rife with truth, and it also is striking a responsive chord among many Hoosiers. If the industry treats it as constructive criticism, it can look at its weaknesses and build from there. The industry must aggressively defend itself against lawsuits questioning the constitutionality of the underlying law. The gaming association must work to put a "face" on the gaming industry in the Hoosier State, so that Hoosiers maintain a positive image of gaming in Indiana. Finally, the legislature itself would probably be best advised to avoid making any significant changes to the status quo in terms of either the regulation of the boats or their taxation.

Hoosier communities must also play a role in the process. Communities must continue to hold the boats to the terms of their development agreements, press management for improvements to facilities and infrastructure, and continue to encourage them to be active participants in their communities. They must also be able to take a step back and not be pulled in by the glitz and glitter and greenbacks, and must be able to draw the proverbial line without killing the golden goose. Communities must ensure that there remains a compatibility between community and casino goals. Communities must take the initiative during these heady periods of low unemployment and strong economic growth to serve up a coherent vision and begin work on a comprehensive planning agenda for long-term community growth complementing their casinos, but not depending upon them. And, yes, communities should do some deep thinking about what their communities will look like and what should be done about it should their boats float away for political, social, or economic reasons.

If all this happens—and if we do not experience a severe recession, riverboat casinos should prove to be an asset to the state, assuming that one accepts the General Assembly’s public policy premise that they should be a part of the Hoosier milieu.

• The Porter County Convention, Recreation, and Visitors Association, concerned that the annual visitor’s guide for the county nestled between the gaming Meccas of Lake County and LaPorte County would be overrun with full-page ads from casino companies (they gingerly referred to them as "out- of-county advertisers), enacted a new policy that will require one full-page of varied-sized ads for local businesses to be sold for each full-page casino ad (the pages will also face each other).

• Law enforcement authorities in Evansville raided Tony’s Sports Bar and arrested owner Anthony A. Thompson for promoting professional gambling. The bar was paying off on electronic gambling machines; Thompson reportedly told the local gendarmes that he was making about $500 per week from the concession.

• A late June ruling by the California Legislature’s legal counsel could have interesting implications in Indiana. Late last month that authority issued an opinion that "Lawmakers could face federal criminal sanctions if they take campaign donations from California Indian gambling operations deemed illegal," according to the Los Angeles Times. The opinion cites federal laws against money laundering and racketeering, saying ‘money that is generated at an Indian casino from gambling activities that are illegal under state or federal law is potentially subject to seizure by federal authorities.’"

• The big crackdown on Internet gambling undertaken by Attorney General Jeff Modisett (D) might catch unwary fantasy or rotisserie league baseball or football players in its net. The Las Vegas Sun reports that fantasy league operators (including such big names as CBS Sports, Microsoft and ESPN) are concerned that the U.S. Senate bill on Internet gambling would restrict their activities. Most of the leagues allow players to wager against each other with winners receiving cash awards at the end of their seasons. As the Sun explains it, "Fantasy league participants pay a fee at the beginning of a season. This lets them assemble a roster of major-league baseball, football, hockey or basketball players. They compile points based on the performances of their real-life picks. Players who end up with the most points win cash prizes."

• Overlooked: fraternal and service organizations are planning to argue in court that if the State sanctions one group to conduct gambling activities, all other groups should have the same rights to gamble. If they win on those grounds, chances are that the Attorney General Opinion that we discuss on the front page of this issue would go out the window as well; the State would probably be required to allow Internet gambling entities to purvey their services in Indiana, and to allow Hoosiers to partake of such activities . . . which would likely put the fraternal and service organizations in the same place that they were—hurting because people would find alternative gambling outlets that were more convenient (and less smoky) than, for example, a legion hall.

• As part of his crackdown on Internet gambling, Attorney General Jeff Modisett (D) sent e-mail messages to 192 different Internet gaming site administrators (apparently none based in the United States) warning them that Indiana considers Internet gambling to be illegal, and requesting that they post warning notices on their sites informing Indiana residents that it is a crime for them to gamble on-line. The actual message:

• The Indianapolis Star uses an editorial and accompanying editorial cartoon to highlight the "troubling though hardly surprising" preliminary findings by the Louisiana State University project team on the numbers of those with problem or pathological gambling disorders in the Hoosier State. As the editorial states, "The Indiana study should help expose the dark side and flesh out the whole story. The critical question, however, will be response of a state government that itself sponsors and celebrates gambling and is increasingly dependent on its rake-off from the industry."

• In a Fort Wayne News-Sentinel story about the Louisiana State University problem gambling survey, Fort Wayne’s Ron Phillips, Executive Director of the Indiana Council on Problem Gambling tells the paper that "Gambling has gone from being a sin (to where) it’s now like your civic duty to play the lottery." And, reports the paper, "Fort Wayne’s Joe Daniel, president of the Indiana Council on Problem Gambling, said the problem can be partially blamed on the scratch-off games many fast-food restaurants hand out. ‘Gambling among the youth is out of control, and it’s a direct link to Wendy’s and McDonald’s,’ Daniel said."

• The Indiana boats could be facing a big challenge if an item in Michael Sneed’s Chicago Sun-Times’ column proves true. She writes that "a major move to expand gaming in Illinois is being planned for the Legislature this fall. The pitch: Docked casinos. The ploy: A bill is brewing, reportedly backed by top legislative leaders, that would expand the number of gaming licenses for riverboats (thus making Chicago, Rosemont and North Chicago happy) while at the same time allowing current riverboats to be docked instead of having to sail, thereby increasing their revenue by 30 percent." She goes on to add that Illinois’ House Speaker, Rosemont’s mayor, and the state’s Senate President "are on the same page tooting the casino horn."

• Gary casino owner Don Barden has teamed up with former Gary resident Michael Jackson in an effort to bring an unprecedented $1 billion "Majestic Kingdom" casino and entertainment complex to Barden’s hometown of Detroit . . . but only if Motown voters pass a ballot proposal next month that would pave the way for such an enterprise—and deepsix the current plans to bring three land-based casinos to downtown Detroit. In news accounts, Barden says it would employ 6,000 people and he labels it "the most expensive ... the most magnificent, the greatest project of all that’s been proposed ever in the history of Detroit." The complex would include a Jackson "Thriller" theme park, a concept floated for Gary a few years back by then-Mayor Thomas Barnes (D). The Barden-Jackson team also plans to continue development concepts outside of the United States, and a joint visit to Vegas whetted their appetite for doing a deal there.

• The Indiana Gaming Commission’s July 17 deadline is rapidly approaching for Crawford County to get its act together, find a suitable applicant to assume control of the Crawford County Casino Corporation application from Casino Magic Corporation, and have that new applicant submit a completed application to the Gameboys . . . unless they see fit to grant the county an extension.

• While it may play in some of the more rural areas of the state, it could backfire in Evansville. Nevertheless, in a Shoals debate characterized by personal attacks from both candidates, the Evansville Courier’s Mike Chambers reports that U.S. Rep. John Hostettler (R) "accused" his challenger, Evansville City Council member Gail Riecken (D), "of planning to profit from casino gambling by extending an option to buy a marina she owned to Players Casino when gambling executives were considering Evansville."

• The Associated Press reports that an $8.75 million breach of contract lawsuit has been filed in federal court against Jimmy Connors by his former lawyer. The attorney, Edward F. Brennan Jr., alleges that Connors owes him 20 percent of the proceeds from the sale of stock in Argosy Gaming Company’s predecessor company that was converted into 2.5 million shares of Argosy stock in 1993.

• Argosy Gaming Company "is on the hunt for a new partner to develop a 305-room, $22.5 million convention hotel [in Louisiana] and has heard from at least one unnamed suitor for the project," the Baton Rouge Advocate reports, after "Argosy’s former partner, Houston-based real estate developer Jaramar Corp., was unable to work out loan guarantees to finance the hotel .... Argosy is unable to assume additional debt or stand behind a loan to Jaramar under terms associated with $235 million in bond financing Argosy obtained in 1996 .... Because of that, Argosy needs a partner with the resources to satisfy loan guarantees for the proposed hotel .... Until a hotel is built, Argosy must pay a penalty of $2.50 per passenger boarding the Belle [of Baton Rouge]. That totals between $3.5 million and $4 million annually, which affects cash flow and financial operations at the Belle." Could the new suitor have Hoosier ties? Just askin’.

• Like any good neighbor would do, the Commonwealth of Kentucky established a relationship earlier this month with the Caesars Indiana folks that will be berthing across the Ohio River from their sacred ground. More precisely, they opened a dialogue with the casino that will be operating a boat just a scant distance from their precious territorial waters, where gambling is prohibited. Kentucky Attorney General Ben Chandler (D) had Deputy Attorney General Scott White pen a letter to Caesars Executive Vice President Michael Walsh welcoming the boat to the Ohio River Valley . . . by warning Caesars that the commonwealth’s navy has every intention of ensuring that the purity of its river waters remains free of the evil taint of gambling (good thing horses don’t run on water), and seeking more intelligence on cruising intentions. Welcome to the region, and, oh, don’t forget that "any entry of your boat into our waters would be a very serious matter impacting our criminal code," General Chandler writes. He’s concerned that The Glory of Rome’s 105' width will render it unable to limit its navigational activity to the 110' wide stretch of Hoosier H₂O at the Bridgeport berth. Kentucky’s top legal officer cites a Save Our River report by retired U.S. Coast Guard commander W. D. Kline, and suggests that from his perspective, it appears unlikely that the world’s largest riverboat casino will be able to keep from "inadvertently cruising into Kentucky waters."

• An article about Caesars World, Inc. in the July issue of Casino Journal suggests that the Harrison County riverboat is a $300 million project that will open in September.

• Argosy Gaming Company CEO Jim Perry grants an interview to Casino Journal’s National Gaming Summary and reveals that the Argosy Casino and Hotel in Lawrenceburg’s strong revenues "have been a function of the mid-week market," and he expects "more of a bump from the hotel that opened in May." Even on the world’s largest riverboat casino (for now), "Clearly we’re at capacity on weekends."

• June riverboat numbers are due out today, and we’re expecting that more than a few people will be disappointed. Look for June revenues to be below May’s record results, but resemble April numbers. May had five weekends, a holiday, and 31 days, compared to June’s four weekends, no holidays, and one fewer day.

• Tom Grey, chief of the National Coalition Against Gambling, tells the Boston Globe that if his efforts to repeal riverboat gaming in Missouri are successful, he will have the momentum to go after Indiana next.

• Here are your May 1998 (latest month available), preliminary unemployment numbers for Indiana’s riverboat and riverboat hopeful counties:

• The Indiana State Lottery Commission is slated to meet July 21 in Indianapolis. For more info, all 317/264-4800.

• The Powerball jackpot was up to almost $70 million for the July 11 drawing as we were going to press, with a complementary Hoosier Lotto jackpot of $10 million, a nice way for the first few weeks of the new fiscal year to begin, if you’re a state lottery official.

• With the Indiana State Fair preparing to open for its annual run next month, the Hoosier Lottery has released a new set of "fair" weather-oriented scratch-off games.

• As Paul Estridge, Sr. continues his recovery from recent surgery, word reaches us—albeit a bit late—that his company has purchased the land in Lawrence (not the option to the land, but the land itself) that had been proposed a few years back by a competing entity for a track in Marion County.

• In the first big Bingo crime news in several years (the last one involved an armed robbery of a bingo game in Knox County), Fort Wayne police are looking for leads in the homicide of Alfreda Bledsoe, found dead of blunt force trauma to the head in the basement of Revelation Mission, the mission that she founded and directed. She was last seen in late June, leaving a Bingo game at the Shepherd of the City Lutheran Church with a bag of cash from the game; proceeds from the Bingo were used to fund mission programs.

• Remember the notorious Caream Kamide and the Little Vegas company, fingered by the Indiana Department of Revenue for illegally running several casino nights in Allen County? Now the Department of Revenue has fined Kamide $5,000 and five local non-profit organizations $5,500 each for violations related to his activities, and for violating state laws requiring that casino night workers have been members in good standing of the sponsoring groups for at east 30 days.