A federal judge sentenced former Shelbyville, Indiana, Rep. Sean Eberhart to one year plus one day in federal prison for his role in a longstanding casino corruption case. Last November, Eberhart pled guilty to conspiracy to commit honest services fraud after evidence surfaced that he traded political advocacy for the promise of a lucrative casino role.
Eberhart’s guilty plea also ended any previous speculation that Indiana might legalize online casinos in 2024. Senate President Pro Tempore Rodric Bray and House Speaker Todd Huston nixed the idea before the session began, stating that fallout from the ongoing scandal would make it inappropriate to discuss any additional gambling expansion.
Ultimately, Eberhart faced a maximum sentence of five years in prison and a $250,000 fine. However, the prosecution, represented by the US Attorney Office’s Bradley Paul Shepard, recommended a lesser penalty.
Patrick Cotter, Eberhart’s attorney, asked for probation, arguing prison time was “unnecessary.”
US District Judge Matthew Brookman sided with the prosecution and handed Eberhart a $25,000 fine and one year of supervised probation following his incarceration. Eberhart will also pay the state $60,000 in restitution and a $100 mandatory special assessment fee.
In a release announcing Eberhart’s sentencing, Zachary A. Myers, US Attorney for the Southern District of Indiana, argued the law must hold public officials accountable.
This criminal’s former constituents, and all Hoosiers, rightfully expect elected officials to act on the public’s behalf, and not to line their own pockets. Legislation must not be for sale to the highest bidder, especially when they have such a tremendous impact on our state and its economy.
Public office is a public trust, and those who break that trust by taking bribes will be identified and held accountable. The federal prison sentence imposed today demonstrates our office’s commitment to root out public corruption at all levels of government and uphold the law regardless offenders’ status or position.
Eberhart Traded Political Influence for Personal Gain
According to prosecutors, Eberhart used his political position to “enrich himself by soliciting and accepting gifts, payments, and other things of value” from Spectacle Entertainment.
Specifically, the Republican lawmaker accepted a future opportunity worth at least $350,000, plus an equity stake in Spectacle in exchange for his political influence.
That support saw Eberhart back a 2019 omnibus bill allowing Spectacle to move its new casino licenses to more beneficial areas. According to court documents, Eberhart also advocated to reduce a proposed $100 million transfer fee Spectacle would have to pay to acquire the casinos. Ultimately, the legislators substantially lowered the fee to $20 million.
According to court documents, prosecutors based Eberhart’s charge on evidence found in texts, call records, digital document images, and audio and video recordings.
Although officials indicated that Eberhart did not act alone, there have been no subsequent charges.
However, Eberhart is the third former Indiana lawmaker in hot water over their relationship with Spectacle (or its previous incarnation, Centaur).
In late 2020, Centaur executive John Keeler and former state Sen. Brent Waltz were subjects of a federal investigation into improper political contributions. In that instance, investigators uncovered a scheme to funnel corporate casino contributions to political candidates.
As a result, the Indiana Gaming Commission forced Keeler (a former state representative himself) to divest his ownership stakes in casino projects in Terre Haute and Gary. Despite not facing charges, authorities also forced Rod Ratcliff, another high-level Spectacle executive, to abandon his interest in the developments.
Waltz later pled guilty to two felony charges and received a 10-month prison sentence. For his part, the court sentenced Keeler to two months incarceration and a $55,000 fine.
Will 2025 be Indiana Online Casinos’ Year?
Despite Indiana lawmakers’ refusal to consider online casinos in 2024, Eberhart’s sentencing ought to provide some closure for the harms perpetrated.
Perhaps, with both the scandal and the upcoming US election soon in the rearview, Indiana online casinos will return to the legislature in 2025.
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