Lawsuit could further snarl delayed Terre Haute casino plans

INDIANAPOLIS (AP) - Indiana officials are trying to push forward the stalled plans for a Terre Haute casino, giving the company that runs the Kentucky Derby a license for the project on Tuesday despite a new lawsuit that threatens to further delay construction.

Indiana Gaming Commission members approved giving the casino license to Louisville, Kentucky-based Churchill Downs Inc. after they endorsed a deal settling a legal appeal filed by a Terre Haute ownership group originally granted the license last year.

The commission preliminarily picked Churchill Downs in November over three other companies for the Terre Haute license. Churchill Downs presented plans for a $240 million project building a new casino, along with a 10-story, 125-room hotel with a rooftop lounge.

One of the companies passed over, Las Vegas-based Full House Resorts, filed a lawsuit Friday against the Gaming Commission. The lawsuit claims the commission violated state law by considering suggestions from Churchill Downs that it would look at sites other than the one included in its application, which is adjacent to Terre Haute's sewage treatment plant and the new Vigo County Jail.

Commission Chairman Michael McMains called the Full House lawsuit 'œsour grapes'ť and said he believed it was 'œfrivolous.'ť