Federal Judge Upholds Prison Term in Indiana Casino Campaign Scandal

• Judge rejects Waltz motion to vacate prison sentence
  
• Scheme tied to Centaur casinos and $40,500 donations
  
• Hard Rock Northern Indiana project shadowed by probe

A federal judge has rejected a bid by former Indiana state Sen. Brent Waltz (R) to overturn his prison sentence for illegally funneling casino money into his failed 2016 congressional campaign.

In doing so, Chief U.S. District Judge James R. Sweeney II drew a line under one of the Midwest’s most prominent gambling-linked political scandals – and there have been a few.

In a February 9 order, Sweeney denied Waltz’s motion to vacate his guilty plea and 10-month federal prison sentence. Waltz had argued that he accepted the plea based on faulty legal advice and did not understand he was likely to face time behind bars.

At the time, the Indiana casino developer owned Indiana Grand Racing & Casino in Shelbyville and Hoosier Park Racing & Casino in Anderson.

What did Waltz do with the money?

Keeler pleaded guilty in 2022 to causing the filing of a false tax return in relation to a scheme to transfer $41K of Centaur Gaming’s funds to a political consultant working Waltz’s campaign.

Keeler then instructed the consultant to direct $25K to the Greater Indianapolis Republican Finance Committee.

Federal law bars corporations from making direct contributions to federal election campaigns. The payment was falsely described as a legitimate business expense on Centaur Gaming’s tax filings for that year.

Under his plea agreement, Waltz avoided trial on additional counts that could have increased his sentence.

He ultimately served about six months in federal prison in Kentucky before completing the balance of his 10-month term in a halfway house and on home confinement. He also received two years of supervised release.

What is Waltz’s Defense?

In seeking to undo the conviction, Waltz claimed his former attorney failed to properly explain how federal sentencing guidelines work, particularly how the dollar amount of the illegal contributions could influence prison time.

He argued that had he understood the likelihood of incarceration, he would not have pleaded guilty.

Judge Sweeney rejected that argument, noting that during the plea hearing Waltz affirmed under oath that he had read and discussed the agreement with counsel and understood that the sentencing guidelines were advisory and not binding.

The judge also declined to issue a certificate of appealability, limiting Waltz’s immediate options for further review.

What has Waltz said?

Speaking to the Daily Journal after the ruling, Waltz criticized the judge and maintained his innocence despite his prior admissions in court.

Judge Sweeney, I don’t have a very high opinion of him,” Waltz told the newspaper. “I am living, breathing proof that anyone can have their constitutional rights taken away from them unjustly.”

Waltz also told the Daily Journal that it “just seems so wrong that one person can have the final word on something like this without even being able to appeal it to a higher court.”

Rock and a Hard Place

In 2018, Centaur’s racetracks we acquired by Caesars Entertainment, and Centaur CEO Rod Ratcliff formed Spectacle Entertainment, bringing John Keeler with him.

Spectacle acquired the Majestic Star Casino and sought to move its two existing licenses to build new casinos in Gary, Ind. (with Hard Rock) and Terre Haute, Ind.

Just weeks after the Gary project began, the Indiana Gaming Commission launched a probe into the illegal campaign contributions. Ratcliff and Keeler were ousted, and Spectacle was reduced to a minority stake in what became the Hard Rock Northern Indiana.