US: Union fights sale of Ameristar Casino property

Unite Here, Local 1, will ask a state administrative law judge to rule that the union is adversely affected by Indiana Gaming Commission approval for Pinnacle to sell its real property to Gaming and Leisure Properties Inc., while Pinnacle remains Ameristar Casino’s operator.

The Gaming Commission rejected, 5-0, the union’s claim that it is an aggrieved party and has standing to challenge the state regulatory agency’s Feb. 24 order approving the deal.

Union attorney Jeffrey Macey said he anticipated that outcome, but is expecting a different result when a judge considers whether the union has a right to intervene based on its claim that the sale will harm its members, and Hoosiers generally.
The union contends the purchase violates Indiana law because GLPI then will own three casino boats: Ameristar on Lake Michigan, and Belterra and Hollywood on the Ohio River.

State law permits an entity to own no more than two casinos. However, the Gaming Commission concluded that since GLPI does not operate the casinos on any of the Indiana properties it owns, the sale does not run afoul of the two-casino maximum.
Ameristar and Belterra are set to be run by PNK Entertainment, a new Pinnacle holding company, while Hollywood Casino is licensed to Penn National Gaming.

Nevertheless, Unite Here believes concentrated ownership of the casino properties will restrain employee wages and benefits, the lease payments will preclude needed capital investment and the combination of those factors will force casino workers into government health care programs.

“Two boats means two boats,” Macey said. “We’re the only people currently saying it, but that’s the goal.”