Casino investments: a billion dollars in spending.

• Author: Richards, Rick A.
• Position: REGIONAL REPORT NORTHWEST

NORTHWEST INDIANA is the third-largest gaming in the country, behind only Las Vegas and Atlantic City, according to Indiana Gaming Commission statistics. The five casinos operating on Lake Michigan generated $2.6 billion in gambling revenue from roughly 6.4 million visitors last year.

"When you look at this market, you see a lot of potential," says Rick Mazer, general manager of Horseshoe Casino in Hammond.

That potential has translated into a $485 million project to build a new 100,000-square-foot riverboat, replacing a 54,000-square-foot riverboat that has been in use since 1996. Mazer says the project also includes 650-seat buffet and an entertainment center that can seat 3,000 people for boxing matches, 2,500 people for concerts or 1,400 people for banquets.

The new project is so big that Horseshoe has purchased the neighboring Hammond Marina from the city for $3 million and will pay the city another $3.5 million to make up for lost marina revenue while the casino is under construction.

The project is expected to open in the summer of 2008, but it's not the only major project being undertaken along Lake Michigan. Blue Chip Casino in Michigan City is spending $130 million for a 22-story hotel that is expected to be completed by the end of 2008. The 300-room hotel will complement an eight-story, 188-room hotel already on the site that Stillwell says is full. The new hotel will also feature restaurants, night clubs, a spa and...