IBJNews

Indiana lawmakers aim to shore up riverboat casinos

Back to TopCommentsE-mailPrintBookmark and Share

Lawmakers have introduced legislation to help Indiana's riverboat casinos hold onto business in the face of growing competition from casinos in neighboring states.

The bills would allow the casinos to move from the boats onto land, reduce their taxes and lift game restrictions on some. A major question, however, is whether any can win approval from lawmakers leery about being perceived as expanding gambling.

Indiana expects a 15-percent drop in the tax revenues from its 13 casinos, from the $614 million it collected last year to about $520 million for the 2015 budget year. State officials blame the decline in part on the opening of new casinos in Ohio, Michigan and Illinois.

"Everyone is focusing on dollars but what we're talking about at the end of the day are thousands of Hoosier jobs," said Mike Smith, president of the Casino Association of Indiana. "Our industry for the last many, many years operated in a controlled competitive environment. Today, that's no longer so much controlled with the expansion going on."

A state Senate committee is scheduled to take up a bill Wednesday that would eliminate the riverboat admissions tax and replace it with an additional tax on casino revenues. It also would eliminate taxes on wagers made with credits given to gamblers by the casinos.

Sen. Phil Boots, R-Crawfordsville, the bill's sponsor, said the changes are needed to keep Indiana's casinos "in the game."

"It's going to be a hit to the state revenue, but if it makes them more competitive and we get more participation in the state then it should offset," Boots said. "But if we don't do it and they aren't competitive, then we are going to lose continually to the surrounding areas."

Smith said he didn't know how much money the changes would save the casinos, and legislative staffers haven't yet completed an estimate on the potential impact on state revenue.

Other provisions of Boots' bill would allow the state's 10 riverboat casinos — five on the Ohio River and five on Lake Michigan — to move to property next to their docks and drop a ban on live table games, such as blackjack and roulette, at the horse track casinos in Anderson and Shelbyville. Only electronic gambling machines are currently allowed at the tracks.

A bill from Sen. Ed Charbonneau, R-Valparaiso, would let Majestic Star casino in Gary move from its dock along Lake Michigan to a spot in the city, a change Gary leaders have sought for several years. They hope to boost business by putting the casino closer to a highway, but the move has been opposed by officials in neighboring Hammond and East Chicago, which have their own casinos.

Charbonneau's bill would take away one of Majestic Star's casino licenses for its two riverboats in exchange for the inland site. Charbonneau said moving the riverboats would open up a spot for a new Indiana shipping port along Lake Michigan that's needed because of growth at the nearby Burns Harbor port.

"The only place with significant enough property happens to be where the Majestic Star boats are located," he said.

The legislation got a cool reception from Rep. Bill Davis, R-Portland, chairman of the House Public Policy Committee, which would likely handle it. He expressed concern about moving casinos from locations endorsed by voters in local referendums.

He also said casino tax revenue doesn't make up enough of the state budget — only about 4 percent this year — that the General Assembly has to make changes. However, he said, lawmakers do need to be mindful of the thousands of jobs the casinos provide.

"I think we're going to do it in a way that we don't see a huge expansion of gaming across our state in an effort to keep competitive and have gaming facilities where we haven't seen them," Davis said.

Charbonneau said action is needed because Indiana's casinos are "under attack" and the prospects for the Lake Michigan casinos will only get worse if Illinois officials allow casinos in Chicago.

"We haven't even felt any effect from Chicago," he said. "We have our head in the sand if we don't think that's coming."

ADVERTISEMENT

  • Other Issues
    I play poker once a month at the casino in Lawrenceburg. The casino knows attendance will be declining very soon. The casino in Cincy opens in February, I beleive. They have already moved thier poker room and have started to lay off workers, from what I hear. Anyone from Cincy, or most of Ohio and parts of Kentucky, will now stay close to home and help thier own state's economy. So, the casinos on the Ohio will suffer the most, especially if Shelbyville and Anderson get the same types of table games. Very few from Indy will continue to drive 2 hours when they can reach a casino in less than one hour. The change will be a boon for those 2 casinos and the outlying casinos will suffer even more. There are many factors to be considered but less taxes will certainly help. The Shelbyville and Anderson casinos already filed BK once, more could follow.
  • Golden Goose
    I don't think the lawmakers necessarily believe they run the casinos, they just want the fast and easy taxes to keep rolling in and of course there are the employment concerns. I am sure the casino operators are crying the blues about paying too much in taxes. The bottom line is people used to drive 2-3 hours to go to a boat and now they are much closer - it is just more competitive and will continue to be. The casino operators need to provide a great product to earn customers unlike before the competition.
  • Playing the left & right against the center for profit
    Here is the problem. These lawmakers have the mindset that they run these casinos. The truth these are private businesses and several indiana casino also control the neighboring states casinos thus the competitive mindset of us vs. them is false. Giving them an investment opportunity to relocate to a better lndiana location within a county is not a bad idea but lowering there taxes is out of the question.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. They can always get jobs at the Post office.

  2. Hello i am Clarisa Steve from Florida USA,when i was in need of a loan of $230,000 to transit a business my friend introduced Mark Oscar loan firm to me because she got a loan from them sometime ago, so I was so scared because of the scams in the internet but my friend encouraged me to give them a try and i gave them a try and i got my loan within 4hrs and their ways was very easy no credit check,no cosigner,no collateral and their interest rate is just 2%, so i will advice anyone out there that need a loan to contact them via their Email:(oscarloanfinance@hotmail.com).

  3. "This was a very localized, Indiana issue," he said. As in, Indiana failed to expand Medicaid to cover its poor citizens resulting in the loss of essential medical services, including this EMS company. Well done, Indiana GOP. Here are the real death panels: GOP state governments who refuse to expand Medicaid for political reasons.

  4. In the "one for all, all for none" socialist doctrine the sick die...this plus obama"care" equates to caucasian genocide plus pushed flight to cities thus further eroding the conservative base and the continualed spiral toward complete liberal/progressive/marxist America.

  5. There is a simple reason why WISH is not reporting on this story. LIN has others stations in different markets that are affiliated with CBS. Reporting about CBS blindsiding WISH/LIN due to CBS's greed and bullying tatics would risk any future negoations LIN will have with CBS in other markets.

ADVERTISEMENT