The Corydon Democrat
Wednesday, February 6, 2002

Foundation Gets New Record of $1.29 Million from Caesars

Last month's whopping $1.29 million check is the largest yet the Harrison County Community Foundation has received for one month of revenue sharing from Caesars' riverboat casino complex, and it followed two other record payments of more than a half million dollars each.

"In October, we received the biggest ever, $685,874; in November, we received the biggest ever, $763,502, and in December, we received the biggest ever, $1,295,256," said HCCF director Steve Gilliland, in a steadily rising voice. "It's phenomenal.

"I was hoping we would see $800,000."
Under Caesars' agreement with Harrison County to obtain the gambling license, the gaming company made a one-time gift of $5 million to establish the Foundation. Caesars continues to contribute a percentage of its adjusted gross receipts each month to the Foundation. The percentage goes up as the revenues increase during the year.

Caesars reported $214.8 million in adjusted gross receipts last year, a record since the company opened for business at Bridgeport in November of 1998. The contributions to the Foundation are in addition to gaming taxes paid to Harrison County, which so far amount to more than $57 million.

Two factors -- the opening of the 500-room hotel at the casino complex and the public's desire to stay close to home, at least within driving distance following the Sept. 11 terrorist attacks -- may have boosted business, said Caesars' spokesperson Judy Hess.

"Since 9-11, people in that last quarter were to a point they wanted to get out some, but not a lot," she said. "There is a lot of interest in this type of entertainment, but they're not willing to get on a plane to do it."

The opening of the luxury hotel in late August added to the appeal.
"That was part of it; now you can drive here and have a place to stay," Hess said. "It's the whole combination -- the amenities coming together ... you can stay here, there's live entertainment, lots of dining choices, the world's largest gaming vessel ... It's a pretty complete experience."

The hotel's $1 million swimming pool and jacuzzi, expected to open in April, and the Chariot Run championship golf course southwest of Elizabeth, expected to open in late August or early September, will only add to that experience, Hess said.
She said Caesars will provide transportation for guests to the golf course, which will also be open to the public.

Although the gaming industry has said studies show most riverboat casino patrons come from within a 100-mile radius, Hess said actual numbers and locations cannot be disclosed for Caesars because that information is proprietary.

Caesars' original gift of $5 million plus $9 million received by the Foundation is invested with PNC Bank and is managed by the bank's trust department, and $1.5 million is in an interest-bearing account with First Harrison Bank, said the Foundation's treasurer, Tom Tucker, a Corydon CPA.

The Foundation's $5 million will remain invested; only the earnings will be used to fund grants made by the Foundation. Tucker added: "We will tap into some of this continual flow of money Caesars gives us if we feel it is necessary to fund grants that are worthy."

The Foundation awards regular grants on a six-month cycle and, in certain instances, monthly.