Indiana Casino Partners Sue Each Other

A dispute was revealed by lawsuits unsealed July 31 between partners who are developing an Orange County casino and related projects.

The two firms, Indianapolis-based Lauth Property Group and Bloomington-based Cook Group are having a dispute over the control of the $382 million development in southern Indiana. Both of the companies are accusing each other of attempting to force the other one out.

Lauth says that William Cook, the billionaire from Bloomington, has spent extravagantly on renovations of the two hotels, an 18-hole golf course and convention center.

Cook in turn is accusing Lauth of being in the way of the project turning into a high-end resort. Cook says that because Lauth was not able to have the casino-hotel's financing in time, he is entitled to 75 percent of ownership instead of the original 50-50 split.

Both of the lawsuits have been under seal in Orange Circuit Court in Paoli at the request of both camps, but Judge Larry Blanton has made it public Monday.

The first lawsuit was filed by Cook's Orange County Holdings LLC naming Lauth Resorts and Casinos LLC and Lauth Chairman Robert Lauth Jr. Lauth's lawsuit names only Cook.

Ernie Yelton, executive director of the Indiana Gaming Commission, said that the two companies have been at odds for a long time over finances. Yelton also had said that the two companies failed to meet a May 1 commission deadline to secure the financing.