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A new state law that requires Indiana casinos to withhold gambling payoffs to deadbeat parents will be implemented when a
tracking system goes online next year.
The state is working to build an online system that will allow casinos to check the names of winners against a database of
people who owe child support, said Mike Smith, president of the Casino Association of Indiana.
Hoosier Park general manager of gaming Jim Brown expects the program to go online some time in 2011 .
"We're working cooperatively with state government entities to ensure a smooth and customer-friendly transition
in this program," Brown said.
Only people who win enough money to trigger federal tax reporting forms will have to go through the check. Casinos give W-2G
tax forms to people who win $1,200 or more from slot machines, with other limits for other types of gambling.
Once the new system is online, a casino will check a winner's name when it issues a W-2G tax form. The casino will be
able to check a real-time data bank from the Indiana Department of Child Services to see whether the person owes child support.
State taxes will first be taken from the winnings.
Smith said the state is building the system now, and there will be a test later to work out any kinks.
The state hopes to collect $1.2 million once the program is running. But Smith says that 300,000 to 500,000 checks of winners
will yield only about 400 people who owe back child support.
"It's a lot of work to find a few people," Smith said. "The state has a dismal record of collecting child
support. This won't change that number."
The state Department of Child Services, which pushed the new law during this year's legislative session, said more than
165,000 noncustodial parents in Indiana each owe more $2,000 in back child support, which adds up to more than $2 billion
in delinquencies.
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