Indiana Supreme Court to hear arguments over who gets East Chicago casino money

Court to hear arguments on E. Chicago casino money

INDIANAPOLIS — The Indiana Supreme Court will decide whether a share of East Chicago casino revenues earmarked for economic development should go to a nonprofit corporation or to the city.

The court will hear arguments Thursday in a lawsuit filed by Foundations of East Chicago against officials in the northwest Indiana city and the Indiana attorney general.

The 2007 state budget redirected a $6 million annual payment to the city from the foundations, which had received the revenue for more than a decade under a local agreement.

That move came after city officials contended that much of the money had been squandered on salaries and overhead by the foundations.

A Marion County court and the Indiana Court of Appeals found in favor of the city.