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Caesars Entertainment is arguing that a $50m licence transfer fee should not be applied to Centaur Gaming‘s two casinos in the state of Indiana following Caesars $1.7bn acquisition of Centaur, reports the Indianapolis Business Journal.

Caesars has gone further still, suggesting it may not pursue a planned $90m project in the state.

Indiana law prohibits one company from owning more than two casinos in the state – but that doesn’t include racetrack-based casinos, or ‘racinos‘, which were authorised under different legislation.

The Centaur deal was Caesars take over the Hoosier Park and Indiana Grand properties. Caesars argues the fee for transferring those casino licences shouldn’t apply. The Centaur move would give Caesars control over four of Indiana’s five most lucrative casinos.

The Indiana Gaming Commission is likely to discuss the matter in May or June, when it reviews the deal to acquire Centaur – with the threat to withdraw from the $90m scheme to replace Horseshoe Southern Indiana casino near Louisville, Kentucky, apparently in the air.