A former Indiana state representative will serve a prison sentence for his involvement in a corruption case tied to an employment opportunity and a casino company.
Former Indiana Rep. Sean Eberhart has been sentenced to 12 months and one day in federal prison for illegally advocating in 2018 for the relocation of two casinos being considered for purchase by Spectacle Entertainment. Eberhart, who spent 16 years in office, used his position on the state’s House Committee on Public Policy to advocate for legislation supporting the relocations in exchange for a future job at Spectacle.
The opportunity for Eberhart at Spectacle was to pay an annual salary of at least $350,000.
“I am truly and deeply sorry for what I did,” Eberhart told those in attendance at his sentencing hearing at the federal courthouse in Indianapolis earlier this week.
Eberhart was handed his sentence by U.S. District Court Judge Matthew Brookman after agreeing to plead guilty in November 2023 to one count of conspiracy to commit honest services fraud. The charge carried a maximum sentence of five years and a $250,000 fine. The charge also carried up to three years of probation.
Eberhart’s plea deal saw prosecutors agree to a recommended one-year sentence. He is also required to pay the state $60,000 in restitution equaling his salary as a former House member.
Manipulating Indiana law
The former representative used his position to push for a measure that sought to authorize the relocation of the casinos while reducing the state transfer fee by $80 million. Indiana law requires a bill to pass in the House and Senate for the relocation and purchase of casinos across the state. The bill must then be approved by the state’s active governor.
The standard transfer fee was $100 million but Eberhart’s bill reduced it to $20 million. The 58-year-old also sought to enact tax incentives that would directly benefit Spectacle. Indiana’s legislature would pass the bill in 2019 allowing the relocation of the casinos.
Eberhart’s efforts drew the attention of the FBI, which investigated the case.
Nothing new for Spectacle
The gambling company has previously faced regulatory scrutiny in the Hoosier State.
In 2021, the Indiana Gaming Commission (IGC) demanded two former Spectacle executives relinquish their ownership stakes in Hard Rock Casino Northern Indiana, and a multimillion-dollar project to bring a resort and casino to Terre Haute, Indiana.
The IGC forced the sale after former Spectacle executive, John Keeler, and former Indiana Sen. Brent Waltz, were charged by federal prosecutors for using gambling money for campaign funds. Waltz was sentenced to 10 months in federal prison for his involvement while Keeler received two months. Both were given probation upon their release.
