VEVAY, Ind. — Belterra Casino and Resort could face more than $1 million in fines and possible probation after complaints that the Ohio River casino arranged for prostitutes to entertain wealthy gamblers.

The Miss Belterra gambling boat heads out earlier this year from the Belterra Resort near Vevay, Ind. (Enquirer file photo) | ZOOM |

        And two former employees who blew the whistle on prostitution at Belterra may get a boost in their federal lawsuit against the casino in the aftermath of the Indiana state investigation.

        At a Monday hearing in East Chicago, Ind., Indiana Gambling Commission members said they would prefer not to suspend or revoke the casino's license to do business in the state.

        Jack Thar, commission executive director, said that a company official brought prostitutes from California on his private plane for a golf outing in June at Vevay, about 35 miles southwest of Cincinnati.

        Belterra is owned by California-based Pinnacle Entertainment Inc.

        Company officials offered to pay $1 million in fines to settle the complaint, but Mr. Thar suggested the final deal would be more expensive and could involve probation for the casino.

        The commission took no final action.

        Mr. Thar polled board members and all but one said they preferred to settle the case with Belterra rather than suspend or revoke its license.

        Belterra, which opened in October 2000, is the flagship of seven casino resorts owned by Pinnacle, which stretch from Louisiana to Nevada to Argentina.

        Financial analysts said Pinnacle could have lost its licenses in other states or been placed under review if it had lost its license to do business in Indiana.

        The investigation by commission staff and Indiana State Police came in April, after the two female employees alleged that a casino official told them to entice wealthy men on a golf outing into the casino. They said the casino provided the golfers with eight to 12 prostitutes.

        “This can't hurt our case,” said Cincinnati attorney Ned Dorsey, who represents Gwen Perry and Logananne Sabline, both of Madison, Ind.

        In their sexual-harassment lawsuit, filed in U.S. District Court in Southern Indiana, Ms. Perry and Ms. Sabline alleged that the women at the golf outing “groped and fondled the male guests, and allowed the male guests to grope and fondle them.”

        The employees said in their suit that they were told by the casino's security chief to “use sex” to entice men into the casino.

        After they complained, Ms. Sabline was fired and Ms. Perry was demoted. They are seeking $600,000 each in their lawsuit.

        “We are certainly going to use material from the commission's investigation to bolster our case,” Mr. Dorsey said.

        Mr. Dorsey said officials from neither Belterra nor its parent company, Pinnacle Entertainment Inc., have contacted him about the lawsuit.

        The gaming commission also Monday gave tentative approval to an agreement that will force Pinnacle's founder and former chairman, R.D. Hubbard, to pay a $740,000 fine and give up his license to operate a casino in Indiana.

        Pinnacle underwent a management shake-up last week in which Daniel R. Lee replaced both chief executive officer Paul Alanis and Mr. Hubbard.

       Enquirer reporter Howard Wilkinson contributed.
       

Belterra will pay, but license will stay
Family escapes media's scrutiny
Ex-Enron employees spread warning
Study rates heat wrap above pain pills
Flight attendant activist talks security
Soot stopped at door of AK Steel meeting
Andersen workers disperse
Firm feared SEC probe
Business Digest
Industry notes: Banking
Tristate Summary
Morning Memo
What's the Buzz?