House Bill 1540, allowing riverboat casinos to move onto land next to their docks, recently passed the first of two Indiana Senate committees by unanimous votes. The measure also would provide state tax incentives for new casino construction, extend the free-play tax credit for casino marketing programs, eliminate the admission tax, allow live dealers at the state’s two racinos, Hoosier Park in Anderson and Indiana Grand Racing & Casino in Shelbyville, and require a study on local governments’ use of gaming tax revenue.
State Senator Ron Alting said, “Finally, we’re looking at a long-range plan to assist and help the casino and racino industries. We’ve never done something extremely bold, even knowing that we’re having competition coming in. So perhaps this year is the year that we can do that.”
The legislation’s sponsor, state Rep. Tom Dermody, said new casinos in Michigan and Ohio and 18,000 video gaming machines in Illinois bars and restaurants are impacting attendance and revenues at Indiana casinos—especially the five casinos in Northwest Indiana. “By doing nothing, by ignoring the problem, jobs will continue to be lost, revenues will continue to decline. This bill is important to all our communities,” Dermody said.
Commenting on the admission tax, state Senator Carlin Yoder noted, “Currently, in Indiana law, every time a person walks into a casino, that casino pays a $3 admission tax. So if an individual decides to go out to his car and get something and come back in, that’s another three bucks that the casino has to pay every time a customer goes through that turnstile.” He said the tax is unfair from a business viewpoint, but, like Governor Mike Pence, he opposes expanded gambling in the state. Still, Yoder noted, “There’s no doubt that if that bill passes, it will help the revenue situation in Indiana. It’s a question of whether you agree with that philosophy or not.”
In Gary, Peter Liguroi, chief executive officer at the Majestic Star, said, “This is essentially a job protection bill, in that I look at the 1,200 team members we have employed at Majestic and moving to land really puts us in a much better position to compete and also to protect the jobs that we have.”
Majestic Star plans to move its casinos on land next to its existing hotel as part of a $95-$135 million project that would take 36 months to complete and provide 1,400 construction jobs.
The Senate Appropriations Committee will consider the measure in the coming weeks.
