In the upcoming session of the Indiana legislature, sports betting, charitable gaming, tax rates, “free play” promotions and moving casino licenses will be among the major gambling issues to be addressed. State Senator Jon Ford said, “I think that in this session, clearly, we’ll have a lot of discussion on different areas in gaming. It’s time to have these frank discussions. We want to be as consistent as possible, but also, the gaming industry is changing, and changing around us.”
Casino Association of Indiana President Matt Bell noted, “The challenge before policy makers is how do we make sure Indiana is positioned to succeed in a 21st century environment while at the same time acting in a way that recognizes and values the investments that have been made by operators and communities across our state.”
Ford said he plans to introduce a sports betting bill, and state Rep. Alan Morrison also will sponsor a measure legalizing sports betting. Last year, he introduced a controversial bill that included major leagues’ desired integrity fee; Ford’s bill didn’t include the fee. Ford said this time the House and Senate bills will be more alike, but he didn’t elaborate. His bill would allow mobile wagering and keep taxes low, he said.
Regarding charitable gambling—a $500 million industry in the state–Indiana Gaming Commission Executive Director Sara Gonso Tait said current law is “confusing.” She said, “Our goal is not to advance policy. It’s to simplify and modify the charity gaming statute. We want charities to be able to succeed and to raise money to further their charitable purpose.” She said a bill proposing changes to state law are “technical” and “fiscally neutral.”
Currently, people who work at the charity events must be members of the charitable organization for 90 days. The proposed legislation would decreased that to 30 days; however, those working at the events still would be prohibited from receiving compensation. The bill also would allow increased prize limits.
Tax rates for gambling also may be considered by legislators, including adjusting the graduated tax on casino gambling. Bell said, “I would like to see policy that invites investment, invites profitability. It can be argued that a graduated tax rate has an adverse effect on that.”
Another consideration may be taxing table games at a different rate to attract younger players. Bell noted, “They enjoy a more social atmosphere. Table games provide that environment to some extent. So taking a look at the way we tax that activity may well make sense to the overall strategy of drawing additional patrons into our casino properties.” Ford advised taking a “holistic approach.” He said, “For some of our smaller properties, lowering the table game tax may not have a significant impact.”
Lawmakers also are likely to discuss promotional or “free play,” which is taxed after a casino reaches $7 million in annual promotional play. According to Bell, promotional play is “perhaps the most effective marketing tool we have. In states where those caps have been extended or lifted, there has been a corresponding increase in play.” Ford stated, “When you look at the whole Midwest, other states are moving on this. I’m not saying we should do that here in Indiana, but it’s something we ought to talk about. One concern I would have is if it gave one casino an advantage over others.”
Perhaps the most debated issue will be whether a license holder may move a casino’s location. Ford’s legislation would allow this; specifically, he supports moving one of the two licenses to be held by the newly formed Spectacle Entertainment for Majestic Star’s two casinos in Gary. “From an economic development standpoint, we need to really think about the Gary licenses and whether we are best using our state assets–in terms of the licenses–at the locations where they’re at now. It’s my belief that if we’re going to be a gaming state, let’s be a gaming state and maximize our revenue. I personally believe moving the licenses is a way to do that,” Ford said.
Gary officials want lawmakers to allow them to move both Majestic Star casino licenses from their current spot in Buffington Harbor, where they hope to develop a transportation hub. Officials said they’d like to keep one license in Gary, but the other one could move elsewhere in the state if lawmakers approve it.
Spectacle Entertainment’s owners, Terre Haute businessman Greg Gibson and former Centaur Gaming Chief Executive Officer Rod Ratcliff, announced they bought the Majestic Star casinos in November. The transaction still has to be approved by the Indiana Gaming Commission.
Spectacle Entertainment General Counsel John Keller said the company is “not really” promoting a certain location 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 what is the best way to determine where that license should go.”
However, Bell, of the Casino Association, said, “Conversations about moving licenses makes my members nervous and it makes the industry nervous, because that’s the kind of change that can challenge a solid investment. Regulatory certainty and market stability have been so important to our growth in Indiana.” 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.”
A possible scenario would see the second Majestic Star license moved to Terre Haute. In 2017, Ford, whose district includes that city, drafted a bill to allow Full House Resorts to move some of its permitted table games and slot machines there. The bill stalled in the Senate Public Policy Committee.
