The comprehensive gambling measure, Senate Bill 552, was amended in the full Indiana House on Thursday and will receive a third and final reading in the House on Monday, April 15. As many as 30 amendments were offered to the bill, introduced by state Senators Jon Ford and Mark Messmer.
Major focus, however, was on Amendment 10, authored by state Rep. Todd Huston, co-chair of the House Ways and Means Committee. One provision would reduce the fee for Spectacle Entertainment to move its Gary-based Majestic Star casinos inland; Spectacle has proposed opening a $300 million casino along the Interstate 80/94 corridor in Gary and closing the existing casino boats in Buffington Harbor. The fee would be reduced from $100 million to $50 million—$25 million once the Indiana Gaming Commission approved the plans and another $25 million in one year
In addition, Spectacle would have to surrender one of the two Majestic Star licenses. “If they want to move, that action can only happen with us taking action. And there is a value to that move. They wouldn’t be moving if there wasn’t a value,” Huston said.
That value would come from allowing Spectacle to have 2,674 gaming positions, up from a total of 1,684 positions at the two current casinos—essentially making the Gary casino the largest in the state. John Hammond, a lobbyist for Penn National Gaming, owner of casinos in Lawrenceburg and East Chicago, asked lawmakers to reconsider since it would significantly change the competitive environment. “That’s a very, very large casino operation,” Hammond said.
In addition, Spectacle would have to surrender its second license, which it had hoped to transfer to a new Terre Haute, Vigo County location.
“We’ve separated the Terre Haute discussion from the Spectacle discussion,” Huston said. If the operator in Gary wants to move, that’s their decision based upon the parameters that we provide within the legislation.”
Under the legislation, Vigo County voters would be asked to approve a new casino on the ballot in the 2019 general or 2020 primary. If the question would pass, a local gaming advisory board would consider applicants to operate a new Terre Haute casino and choose three to participate in the competitive bidding process. The minimum bid would be $25 million; the highest of the three bidders in a final auction would win the license.
Spectacle would be allowed to bid on the Terre Haute license, no matter what action it takes in Gary. The company previously proposed opening a $100-$150 million casino in Terre Haute.
Huston said some people may consider the changes to be an expansion of casino gambling in Indiana. “Well, as I’ve said before, that term expansion is used in a lot of different ways. But we are going to allow the operation of a casino in Terre Haute. It’s really in the eye of the beholder. And I respect both opinions on it,” Huston said.
An interesting amendment was aimed at private flights Governor Eric Holcomb took with a Spectacle Entertainment executive. It stated all meetings between the governor or his staff members with casino owners or potential owners must be made public with 48-hour notice. The same rule would apply to the Indiana Gaming Commission.
Another provision would provide $1-$3 million for the French Lick casino resort, since a new casino in Terre Haute could negatively impact that property. However, a proposal was removed that would have provided more financial support to Gary-area communities, including Hammond and East Chicago, that could be impacted by the Gary casino’s expansion.
The mammoth legislation also addresses sports betting. Language allowing statewide mobile wagering was removed; mobile betting only would be allowed on-site at casinos. Bets also may be placed at racinos and satellite facilities, although proponents have said mobile betting is vital to a successful program. “I would expect those discussions regarding mobile to continue throughout the legislative session. I am fine with mobile gaming. That has not been an issue with me,” Huston said.
Huston’s amendment also would change the sports betting launch date from July 1 to September 1, 2019. It reduces the license fee from $100,000 to $10,000 and authorizes temporary licenses. Another provision would tax bets at 9.5 percent, starting in September. That rate is higher than Nevada’s 6.75 percent and New Jersey’s 8.5 percent, but lower than Mississippi’s 12 percent and Virginia’s 10 percent. The amendment also allocates 3.3 percent of adjusted revenue to problem gambling services.
House members rejected state Rep. Cherrish Pryor’s amendment that would have directed a portion of sports betting revenue to student athletes who are injured to help pay for insurance. “Everybody is going to make money off these kids. We need to figure out a way to help these students,” Pryor said.
If Senate Bill 552 passes a third reading in the House, House amendments would have to be accepted by the Senate or differences would have to be negotiated in a conference committee. After that, the bill would go back to the Senate to consider changes. The session will end April 29.
