Majestic Star stops paying Gary, Indiana.

The Majestic Star stopped payments to the city of Gary on February 12th causing the city to have to cut back, reports the Post-Tribune.

Majestic Star Casino owner Don Barden cut Gary off from a key source of revenue last week, keeping a promise and putting pressure on the already cash-strapped city.

Celita Green, the city controller, said Majestic Star never made its monthly tax payment last week.

Majestic’s monthly payments total roughly $6 million each year depending on how much money it makes, Green said.

Mayor Rudy Clay said Barden’s decision to withhold payment puts Gary in a “major financial dilemma.”

“The city was skating on thin ice anyway,” Clay said.

Barden filed complaints against the city with the American Arbitration Association and Marion County Circuit Court last week, naming the Indiana Gaming Commission as a defendant in Marion County, as well.

Technorati Tags: Gary Indiana, Majestic Star, tax revolt

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