After two years of falling casino tax revenues, Indiana legislators are reconsidering their opposition to assisting the state’s riverboat casinos. In the year ending June 30, Indiana collected 5.6 million in wagering tax, down 16 percent from 6.8 million in 2009. Most lawmakers blame competition from neighboring states. For example, at Penn National Gaming’s Hollywood Casino in Lawrenceburg, total win fell from .7 million in February 2013 to .8 million in March 2013, and to .8 million by August 2014, according to Indiana Gaming Commission figures. Horseshoe opened in Cincinnati in March 2013.
The commission said August marked the 24th month in a row with a year-over-year decline in statewide winnings. Total win was $199.5 million, down 4.7 percent from August 2013. Total gambling taxes were $38.5 million, down 13.2 percent from last August, the commission reported.
Indiana two racinos, owned by Indiana-based Centaur Gaming, also reported declines. In August, the win at Hoosier Park in Anderson was $18.6 million, down slightly from one year ago. Indiana Grand in Shelbyville brought in $20.8 million, down from $21.8 million the previous year.
These numbers are spurring state Rep. Tom Dermody into action. Dermody, chairman of the House Public Policy Committee and of an interim study committee due to meet September 25, said has been visiting casinos around the state and has ideas to help them stand up to out-of-state competition.
During last year’s legislative session , lawmakers squashed the casino industry’s requests for land-based casinos and live table games at racinos, as Ohio, and Illinois and Kentucky were ramping up the competition. Casinos were allowed to deduct free-play coupons from taxable revenue and small riverboat casinos were granted a tax break in a last-minute compromise. Conservative lawmakers and Governor Mike Pence have stated they will not support expanded gambling.
John Keeler, vice president and general counsel at Centaur, said the company will ask lawmakers once again in 2015 to let racinos, now allowed to have only slot machines, add live table games. Keeler acknowledged that would set up racinos and riverboat casinos to compete with each other, but he said he could show it would lead to a net gain for the state. He said racinos are feeling some heat from video lottery terminals in Illinois and Columbus, Ohio area racetracks. “The economy, for a lot of our customers, hasn’t come roaring back,” Keeler said.
But he’s optimistic about the upcoming session, partly due to Dermody. “I think he’ll be more receptive to ideas that are more favorable to the industry,” Keeler said.
