Indiana Governor Mike Pence still is not saying what he considers to be expanded gambling. However, in regard to the far-reaching gambling bill recently passed by the House, Speaker Brian Bosma said Pence does not like the provision that would allow live dealers at Hoosier Park in Anderson and Indiana Grand in Shelbyville racinos because he believes that qualifies as an expansion of gambling.
House Minority Leader Scott Pelath recently expressed frustration over Pence’s refusal to clarify the issue. Pelath said Pence “needs to decide if he’s going to be involved or not be involved. And if he is going to be involved he ought to be getting involved to help and not keep something from reaching his desk that he has some personal objections to.”
Speculators said Republican Pence may be withholding because he’d look weak if lawmakers don’t agree with him. The Republican-controlled House passed the measure with 75 votes, despite the governor’s concerns. Another theory is Pence does not want to take a stand because he could change his mind later.
In addition to allowing live dealers at racinos that currently offer electronic table games, the House bill, which passed 76-19, would allow the 10 riverboats along Lake Michigan and the Ohio River to rebuild their casinos on land, continue the “free play” tax credit and require a study of how local governments use their gaming tax revenue. It also would provide tax breaks for casino investments in construction and marketing. The measure, House Bill 1540, was sponsored by state Rep. Tom Dermody with the goal of helping Indiana casinos better compete with new casinos in neighboring states.
House members voted to create a special committee to study proposed casino tax changes that could have cost local governments around $200 million.
Following the vote, Dermody said he was pleased to have strong, bipartisan support to advance the bill to the Senate. “We recognize that this industry is like no others and those jobs are important,” Dermody said. Co-sponsor state Rep. Charlie Brown said the measure could save 13,000 Indiana gaming jobs and also create new jobs as casino operators replace aging riverboats with new buildings. For example, the Majestic Star in Gary plans to invest $95-$135 million in a new casino, along with new parking, dining and entertainment spaces if it’s allowed to move onto land next to its existing hotel.
State Senator Jim Arnold is the bill’s co-sponsor in the Senate where debate is expected to focus on the live-dealer provision. Senate President David Long said southern Indiana casinos oppose the move out of concern they’ll lose business. Said Long, “It’s whack-a-mole. You hit one thing and try to solve that problem and another one pops up. It’s frustrating.”
Dermody feels legislators will work out a compromise before the session ends April 29. “It’s a long time between now and April, we’ll work through all the issues and go from there,” Dermody said.
