Former Indiana state Rep. Sean Eberhart is going to prison for his involvement in a corruption scheme tied to a casino company.
This week’s sentencing concludes a saga that began with Eberhart’s guilty plea last November. The man who represented House District 57 for 16 years received one year and a day behind bars after he admitted to conspiring to commit fraud.
His illegal activity has impacted efforts by the Indiana General Assembly to expand legal gambling in the state.
Eberhart must pay $85,000
Eberhart’s plea deal included an agreement to pay $60,000 in restitution, equivalent to his annual legislative salary. He did get a break, as the judge honored the prosecutors’ recommendation that he receive a lighter punishment than the potential five-year sentence he faced.
He must also pay a $25,000 fine and will be on probation for a year after release.
The case’s roots date back to 2018, when Spectacle Entertainment, a casino company, sought to move two casinos from Lake Michigan to downtown Gary and Vigo County. Eberhart played a pivotal role as a member of the House Committee on Public Policy in getting lawmakers to approve a bill allowing the relocations.
He used his influence to help secure tax incentives and other favorable terms for Spectacle, including a future job for himself with an annual salary in excess of $350,000.
Spectacle’s history of illegal activity
Spectacle was involved in another federal investigation that in 2022 led to prison sentences for former Indiana state Sen. Brent Waltz and former casino executive John Keeler. The duo conspired to direct illegal campaign contributions to Waltz.
As a result of the case, the Indiana Gaming Commission forced Spectacle to give up ownership stakes in Gary and Terre Haute casino projects.
More recently, the illegal gambling conviction of a candidate for Vigo County treasurer came to light this past spring ahead of the May 7 primary. Billy Joy, who had a gambling-related misdemeanor dating back over decade, lost the race.
No dice for casino expansion
With these gambling scandals as a backdrop, state lawmakers have made it clear that any moves to expand gaming in the state, including Indiana online casinos, are off the table for the near future.
Last year, Senate President Rodric Bray expressed how politicians’ misconduct affects the chances of future gambling-related bills.
“It diminishes the confidence that people have in the integrity of the statehouse. It causes an awful lot of problems, and it makes it particularly difficult to engage in that kind of policy.”
