Commission: Full House Lawsuit ‘Meritless’
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The executive director of the Indiana Gaming Commission says a lawsuit filed by the runner-up for a gaming license to build a casino in Terre Haute is “meritless.” Full House Resorts Inc. (NASDAQ: FLL) says the commission violated the state’s open door law when it selected Churchill Downs Inc. (Nasdaq: CHDN) as the operator for the casino.
Full House says the commission violated the law by holding a closed-door executive session in the middle of its regular meeting last month. The company says it believes the commission selected the recipient of the license during that session without any debate or discussion in the public meeting.
Commission Executive Director Greg Small says the lawsuit could cost Vigo County and the state tens of millions of dollars in lost revenue.
“It’s disappointing that a company held to high standards of character and integrity would make such claims against the commission. These suits could potentially stall the project yet again,” Small said. “To say that we are frustrated we believe full house’s claims are meritless and we will respond accordingly.”
Commission Chairman Michael McMains says he may have made a mistake in supporting Full House in its application for the license.
Alex Stolyar, chief development officer for Full House, told our partners at WTHI-TV the company would not comment on pending litigation.
Full House Resorts also operates Rising Star Casino in Ohio County.
Yesterday, the commission announced a settlement with former license holder Lucy Luck Gaming, which allowed Churchill Downs to officially receive the license. As part of the settlement, the commission agreed to refund the $5 million license fee to Lucy Luck.