In Indiana, the Senate Public Policy Committee recently voted 10-0 to approve legislation that could allow moving one of the Majestic Star Casino’s licenses from Gary to Terre Haute. It also would legalize sports betting and allow Anderson and Shelbyville racinos to offer live-dealer table games immediately instead of waiting two more years. Committee Chairman state Senator Ron Alting said the legislation is the biggest gambling bill since Indiana legalized casino gambling. The bill still has to pass the Senate Appropriations Committee before moving to the full Senate and then the House.
The unanimous vote for the bill, authored by state Senators Mark Messmer and Jon Ford, came after three amendments were added. Messmer added an amendment that allows any casino licensee in the state to bid on a Terre Haute license; removes the two-license-per-owner limit; and assures the legislation is revenue-neutral for horseracing.
Another amendment incorporates provisions of Ford’s sports gambling bill, SB 439. Among those are a requirement that players acquire and register mobile sports betting devices from a licensed operator in person or online.
State Senator Vaneta Becker presented an amendment requiring any Terre Haute casino to send $6 million annually to Evansville, with 8 percent of the revenue directed to retiring that city’s riverboat lease.
That amendment is in regard to the legislation’s approval of moving the two gaming licenses held by Majestic Star Casino in Gary—one to Terre Haute and the other near I-80/94 at Gary’s lakefront. Terre Haute Mayor Duke Bennet said a casino would make his city a destination and attract gamblers from across the Illinois state line. Gary Mayor Karen Freeman-Wilson said moving the casinos off the lakefront would allow the city to develop an intermodal freight terminal at Buffington Harbor.
Officials in neighboring Hammond and East Chicago expressed concern that moving Gary’s casino to a prime location just off the interstate could cannibalize revenue. Messmer’s bill includes compensation regarding similar concerns at Evansville and French Lick; he said he would add a provision for Lake County.
Moving the Majestic Star licenses would require approval by the legislature, the Terre Haute city council and voters in Vigo County in a countywide referendum.
Last November, Spectacle Gaming, formed by Terre Haute businessman Greg Gibson and Centaur Gaming former Chairman and Chief Executive Officer Rod Ratcliff, purchased the Majestic Star; the deal has yet to be approved by the Indiana Gaming Commission. Gibson said, “We welcome the prospect of working with Gary and the general assembly to maximize the value of these two licenses by allowing Buffington Harbor to become part of an intermodal hub, creating additional employment and increasing state and local tax revenues.”
Centaur Gaming sold its two racinos in Shelbyville and Anderson to Caesars Entertainment for $1.7 billion earlier this year.
Spectacle General Counsel John Keeler said the company is “not really” promoting one location over the other for the second license. “We just think it ought to be moved out of Gary, assuming the general assembly would agree. We have no idea how it would decide where that license should go.” Both Keeler and Alting said they’d be open to Central Indiana but no local officials have expressed interest in a casino.
Casino Association of Indiana President Matt Bell said several members would “vigorously oppose” a central Indiana casino. The Shelbyville and Anderson racinos would feel the biggest impact if that happened.
“That changes the equation quite a bit. I think when riverboat gaming became law in Indiana, the goal was to put properties on borders so that you could attract the out-of-state customer. A move to Central Indiana changes that pretty significantly,” Bell said.
He added, “We have some members with real concerns about how moving those licenses impact investments that have been made, future investments that are planned, if there’s that kind of market instability. I think it’s fair to say that the casino association members are watching extremely closely.”
State Sen. Eddie Melton, another co-author of SB 552, earlier sponsored SB 636 that would require a casino license moved from Gary to locate a minimum of 100 miles from there and direct 20 percent of annual revenue to Gary. That bill is pending in the Senate Appropriations Committee; no hearing has been set.
Messmer and Ford’s bill also would permit wagering on any professional or college sport in person at a casino, racetrack or satellite facility, or via smartphone, after registering in person or online. “Almost every state has got plans in place or has approved. The majority of the states are moving forward with it. If we don’t our citizens of Indiana are just going to neighboring states and it’s legal through Las Vegas and New Jersey and dozens of other states that have adopted or will adopt,” Messmer said.
Horseshoe Hammond Casino Senior Vice President and General Manager Dan Nita noted in Mississippi patrons must register for sports betting in person at a casino, but in New Jersey wagerers never have to set foot in a casino. “The state is gauging what will make the most sense,” he said.
Another casino-related bill has yet to get a hearing. Senate Bill 636, authored by Sen. Eddie Melton, D-Gary, provides that a casino license relocated from Gary must go to a location at least 100 miles away from that city and that the license holder remit 20 percent of adjusted gross receipts to Gary each year for 20 years.
