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Question of the Day - 03 February 2009

Q:
As a resident of Chicago and a regular at Majestic Star riverboat casinos in Gary, Indiana, I was particularly interested in your QoD about Don Barden. Since the Horseshoe casino's grand reopening in neighboring Hammond, Indiana, speculation has swirled whether the two Majestic Star riverboat casinos would be similarly scrapped into one large barge casino or limp along as is or be sold. Chatter among employees and gamblers alike speculates all sorts of options for the future of Barden's Majestic Star riverboat casinos. Got any information about its future?
A:

Not much, seeing as two calls to Don H. Barden himself went unanswered. With the exception of Ameristar East Chicago, all the northern Indiana riverboats took a walloping when Harrah’s opened a new –- and enormously larger –- Horseshoe Hammond casino barge. While other properties in the region have upgraded their facilities, Barden’s continue to –- as you put it –- "limp along." A promised hotel to accompany Barden’s Gary riverboats never materialized, for instance.

Diligent monitoring of casino-related news on the Internet yields few clues as to the inner workings of privately held Barden Cos., parent of the Majestic Star portfolio (which also includes Fitzgeralds-branded casinos in Las Vegas and Tunica, Miss.). Barden himself, though, did find the time to attend President Obama’s inauguration this month.

Fortuitously, a story in the Jan. 25 edition of the Chicagoland Post-Tribune sheds some light on the prickly situation in Gary. Relations between Barden and the city have soured over a variety of issues, including Barden’s attempt to move one of his vessels to another county. Hostilities escalated when Barden, protesting Gary’s failure to build a promised road to Majestic Star I and II’s slips, cut off his financial obligations to the city, placing the money in escrow. Although he subsequently released most of the lucre, a breach-of-contract suit against Gary is still pending.

Politicians in Fort Wayne, Ind., would love to have one of the Majestic Star boats, with or without Barden, but must obtain the approval of both their constituents and the General Assembly. For its part, Gary is unlikely to let either ship hoist anchor without payment of the $1.6 million Barden is withholding. One of his Gary adversaries, City Councilman Roy Pratt, would be glad to be rid of the Detroit businessman, having already failed to get Barden’s licenses revoked. Others contend that the two Majestic Stars would generate more revenue if berthed in separate markets.

As for the question of whether the two riverboats are for sale, Barden says they’re not. Gary Mayor Rudy Clay said they are, then backpedaled. The Indiana Gaming Commission maintains that it hasn’t heard anything one way or another. So the cloud of uncertainty that now accompanies any Don Barden casino property isn’t likely to go away soon.

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