In Indiana, House Bill 1540 has been referred to the House Public Policy Committee. The measure would allow live dealers at Indiana Grand and Hoosier Park racinos, and allow the 10 boat-based gambling facilities to move on land. Currently only the French Lick casino and the state’s two racetrack casinos are land-based. Authored by state Rep. Tom Dermody, chairman of the committee, the legislation could be blocked by Governor Mike Pence, who opposes expanded gambling, although he hasn’t stated exactly what that means.
Jim Brown, president and chief operator officer of Centaur Gaming, which owns Indiana Grand in Shelbyville and Hoosier Park Racing and Casino in Anderson, said, “As we’ve seen revenue decline statewide, is an attempt to bring that revenue back up an expansion? I don’t think so.” Brown added replacing electronic games with live dealers at Indiana Grand and Hoosier Park “creates employment. We don’t know how that can be considered an expansion of gaming.” He said five new jobs would be created for every computer-run game that would be replaced.
Above all, Brown stated, HB 1540“would be a great step in the right direction to keep us competitive.” According to Indiana Gaming Insight publisher Ed Feigenbaum, last year’s drop in revenues of $100 million or 9 percent from 2013 to 2014 was the largest percentage decrease since 2003, when there weret10 casinos in the state compared to 13 today. Plus, he said, it was the fifth consecutive year of declining revenues. In addition, the number of gamblers fell below 20 million for the first time since Indiana legalized casino gaming, Feigenbaum said.
Feigenbaum, Brown and others blame new competition in Ohio, Illinois and Michigan for Indiana’s losses. Only Tropicana in Evansville experienced a gain, of 5.03 percent, partly due to its proximity to Kentucky. The state’s two upriver casinos had losses of more than 25 percent and Horseshoe Southern Indiana had a 3.15 percent drop. “We hate being down, but we understand the competition that was going on around us,” Horseshoe Southern Indiana General Manager John Smith said.
Brown said he’s optimistic that HB 1540 could help “We know legislation continues to twist and turn as it moves forward. We hope something beneficial to our customers and the industry can come out of this session. That’s our primary goal.” He said Centaur supports allowing riverboats to move ashore. “Some of those are as old as 20 years old and becoming outdated. It’s time to look at that, again as part of balancing the playing field,” he said.
That playing field, he noted, should apply to Indiana’s existing casinos. Brown does not support HB 1275 which essentially would deregulate the gaming industry by 2024, allowing new casinos to open anywhere in the state. “We certainly do not believe one of the answers to that is to open new casinos,” he said.
Another bill that could impact Indiana is House Bill 135, which would end the casino exemption from the statewide smoking ban enacted three years ago. The proposal is part of a larger bill to regulate e-cigarettes and ban the sale of tobacco products in stores with pharmacies. Proponents of ending the casino exemption said it would improve the health of workers and patrons. Opponents said removing the exemption would further hurt the industry. “We can’t afford to lose any more of our customers. Getting rid of smoking just isn’t something that resonates with our customers,” Brown said.
He noted a study by the Federal Reserve Bank of St. Louis indicated when smoking was banned in casinos in 2008, Illinois lost $400 million or 20 percent of gaming revenues and $200 million in state tax revenues; local communities lost $14 million.
The measure, sponsored by state Rep. Ed Clere, chairman of the House Public Health Committee, said the projected loss of $200 million in tax revenue due to ending the casino exemption would be offset by reduced health care costs. Clere also said the fact that smoking is allowed in Indiana casinos could become irrelevant, as smoke-free casinos in Ohio lure away players.
However, Clere’s tobacco bill was not assigned to his committee but to Dermody’s, who opposes the measure. Dermody said he understands the health concerns, “but I think we need to leave it to the casino industry right now to decide what’s best for their industry.”
