Indiana Proposes Bill to Expand Casinos
Lawmakers in Indiana have proposed legislation that would allow for additional casinos in that state ahead of anticipated gambling expansion in its neighboring states of Illinois, Ohio, and Kentucky.
Indiana, which proved to be an intrepid state when it introduced casino gambling way back in 1995, currently has five casinos docked along the Lake Michigan waterfront.
This past Wednesday, the Indiana State Senate Public Policy Committee voted 9 to 0 in favor of allowing for those waterfront casinos to expand inland to other parts of the state. The bill would also make changes in the way the casinos are taxed by the state.
Local Indiana news channel WSBT reported that gambling taxes in Indiana presently rank among the highest in the nation.
Under the proposed change, the state would do away with a $3 admission tax that is charged for every person who walks through the casino doors. Taxes levied on casino profits would rise slightly, and taxes on gambling credits passed out to casino visitors would see a decrease.
Indiana’s casinos, among them the Horseshoe Casino in Hammond and the Majestic Star located in Gary, are situated a short drive from Chicago, the nation’s third-largest city. The New York Times reported this week that in order to attract visitors, the Horseshoe operates a 24-hour shuttle to the city.
We reported recently that lawmakers in Illinois are looking into allowing for additional casinos to be constructed in that state, with a downtown Chicago location likely should a gambling measure pass.
The Democratic governor of Illinois, Pat Quinn, has appeared to have softened his view on gambling expansion recently, however he has made it clear that he will expects lawmakers to deal with the state’s massive pension crisis before turning their attention to the matter of gambling.
Backers of the downtown casino plan have proposed the Thompson Center, a state-owned office building plagued with systems problems and badly in need of renovations, as a possible site for the casino. The Thompson Center is located at a busy public transit hub and is close to the theatre district of downtown Chicago.
Since the casinos were first introduced to the Hoosier State in the mid-90’s, Indiana has taken in a massive $10 billion in tax revenue related to gambling. The revenue derived from casino taxes account for 5% of the state’s general fund, according to The Times.
“Those are not dollars we can do without,” said Indiana House of Representatives Democratic minority leader Scott Pelath.
Hoosiers are just as worried about losing out to their neighbor to the east, Ohio, as they are concerned about handing revenue over to Illinois, if not more so. In March, a casino set to open in Cincinnati will become the closest to the Indiana border. Job layoffs at Indiana casinos have already been blamed on competition from properties in Ohio.
With a similar tale being told all over the country as cash-strapped states scramble to prevent job loss and to shore up budgets still affected by the recession and lingering weak economy, many lawmakers and industry observers in Indiana suspect the salad days are over, as far as easily-won gambling revenue is concerned.
With state and local budgets closely tied to housing, more and more states across the nation are looking at gambling as what amounts to a “found tax”, despite the fact that the issue is often a morally divisive one with both sides often becoming bitterly entrenched.
Said Ernest Yelton, the executive director of the Indiana Gaming Commission, “Most observers will say Indiana will never regain the total numbers of dollars it was used to getting. I think the goal, more realistically, is to minimize the amount of dollars that is going to be lost.”
