IBJNews

New tax break reduces Indiana share of casino revenue

Back to TopCommentsE-mailPrintBookmark and Share

The state's portion of gambling revenue slumped last month as Indiana's 13 casinos took advantage of a new law that allows them to reduce their tax burden.

Total tax receipts from casinos fell nearly 18 percent last month compared with May of last year, according a report released Monday by the Indiana Gaming Commission.

Jenny Reske, deputy director of the commission, told The Indianapolis Star that much of that drop resulted from casinos deducting coupons that they use to attract gamblers by letting them play for free, as allowed under a law passed by this year's General Assembly.

The new law allows casinos to deduct up to $5 million a year on the coupons. However, the state's fiscal year doesn't start until July 1, so lawmakers allowed casinos to deduct half that amount last month. Six casinos deducted the entire $2.5 million, and all but three deducted more than $1.5 million, the report said.

The tax break is intended to help Indiana casinos compete on the same basis as those in neighboring states such as Ohio and Michigan, where the coupons aren't taxed.

"Our ability to have a more level playing field with other states is something that will help us in the long run," said Daniel Nita, regional president and general manager for Horseshoe Casino in Hammond. "It allows businesses to remain competitive without having to take other measures."

Four new casinos have recently opened in Ohio, including one in Cincinnati, less than an hour's drive from three riverboat casinos in southeast Indiana.

But Reske pointed out the new Ohio casinos are owned by Caesar's Entertainment Corp. and Penn National Gaming, which also own casinos in Indiana.

The industry asked the General Assembly to allow land-based gambling for riverboat casinos and live dealers at the state's two racinos, but the tax break was about the only one casinos got. Gov. Mike Pence and several Republican legislative leaders have opposed expanding gambling, and the portion of state revenue from casino taxes has dropped significantly in recent years.

Despite the relief, casino revenues dropped 5.8 percent from May 2012.

Reske said the gaming commission will study over the next two years whether the free-play deductions benefit state in ways by increasing casino revenue or employment.

"That will be important in considering now how to move forward," she said.

ADVERTISEMENT

  • coupon taxes?
    With those coupons the casinos are giving away free money. While I'm no accountant I wouldn't expect Coca Cola to be charged taxes on the dollar amount of coupons which they have redeemed. Businesses pay taxes on their revenue, and that amount is directly increased as a result of what they give away for promotions.

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. I had read earlier this spring that Noodles & Co was going to open in the Fishers Marketplace (which is SR 37 and 131st St, not 141st St, just FYI). Any word on that? Also, do you happen to know what is being built in Carmel at Pennsylvania and Old Meridian? May just be an office building but I'm not sure.

  2. I'm sorry, but you are flat out wrong. There are few tracks in the world with the history of IMS and probably NO OTHER as widely known and recognized. I don't care what you think about the stat of Indy Car racing, these are pretty hard things to dispute.

  3. Also wondering if there is an update on the Brockway Pub-Danny Boy restaurant/taproom that was planned for the village as well?

  4. Why does the majority get to trample on the rights of the minority? You do realize that banning gay marriage does not rid the world of gay people, right? They are still going to be around and they are still going to continue to exist. The best way to get it all out of the spotlight? LEGALIZE IT! If gay marriage is legal, they will get to stop trying to push for it and you will get to stop seeing it all over the news. Why do Christians get to decide what is moral?? Why do you get to push your religion on others? How would legalizing gay marriage expose their lifestyle to your children? By the way, their lifestyle is going to continue whether gay marriage is legalized or not. It's been legal in Canada for quite a while now and they seem to be doing just fine. What about actual rules handed down by God? What about not working on Sundays? What about obeying your parents? What about adultery? These are in the 10 Commandments, the most important of God's rules. Yet they are all perfectly legal. What about divorce? Only God is allowed to dissolve a marriage so why don't you work hard to get divorce banned? Why do you get to pick and choose the parts of the Bible you care about?

  5. Look at the bright side. With the new Lowe's call center, that means 1000 jobs at $10 bucks an hour. IMS has to be drooling over all that disposable income. If those employees can save all their extra money after bills, in five years they can go to the race LIVE. Can you say attendance boost?

ADVERTISEMENT