An important gambling measure, House Bill 1540, recently passed the Indiana General Assembly and is sitting on the desk of Governor Mike Pence, who has given no indication if he’ll sign or veto it or let it become law without signing it for seven days. Sponsored by state Rep. Tom Dermody and state Senators Earline Rogers, Jim Arnold and Lonnie Randolph, the measure is designed to help the state’s gaming industry stay competitive with new gambling options in Ohio and Illinois. It passed the Senate 36-13 and the House 75-11.
The major provision of the bill will allow Indiana riverboat casinos to move onto property they currently own or lease adjacent to their docks. The casinos have operated on the Ohio River or Lake Michigan since they began opening in the 1990s. The Majestic Star in Gary wasted no time in announcing a new $95-$135 million casino and event space next to its existing hotel. The 36-month project is expected to create up to 1,400 construction jobs. “Between the short-term jobs from a construction perspective and the long-term opportunity, this is great news,” Dermody said.
The proposal to allow live dealers at racinos in Shelbyville and Anderson, however, was changed and now delays live dealers until 2021. Pence had suggested the move would amount to expanded gambling, which he would not support. So in an effort to avoid his veto the action was put off until Pence would be out of office if he should win a second term in 2016.
Senate Minority Leader Tim Lanane said, “Best I can tell, the only reason we’re not doing this is because of a threat of a veto from the governor. It’s a shame we can’t create hundreds of jobs in this bill.”
The measure also raises the free-play tax deduction from $5 million to $7 million per casino.
A last-minute amendment, aimed at the Pokagon Band of Potawatomi Indians that wants to open a casino in South Bend, would require any gaming compact the governor reaches with an Indian tribe also to require the legislature’s approval. In addition, both houses passed a joint resolution, on unanimous voice votes, asking the U.S. Congress to change federal law to prohibit Indian tribes from opening casinos in Indiana.
The resolution was sponsored by state Senator Carlin Yoder, who said, “I’m here because back in the early 1990’s the Pokagon Band of the Potawatomi were recognized as a federal tribe and this was done at the behest of U.S. Rep. Tim Roemer and U.S. Rep. Fred Upton out of Michigan, and at the time they were led to believe that the Pokagons had no interest in gaming. The tribe could still pursue a casino but they’d have to go the same route as anybody else in Indiana, which is to obtain one of 10 licenses that are available.”
South Bend state Rep. B. Patrick Bauer said, “Obviously there are gaming interests that don’t want the competition.” And the Pokagon Band in a statement said, “The resolution is the latest example of the government of Indiana not understanding the Pokagon Band’s tribal sovereignty and the federal government’s trust responsibility to Indian nations. The tribe would prefer to move forward by working with state officials on the restoration of Pokagon lands in Indiana.”
The tribe’s proposed $400 million development would include a Las Vegas-style casino, an 18-story, 500-room hotel, meeting space, parking deck, plus housing, health services and government offices. It would create 1,400 construction jobs and 2,000 permanent jobs, and generate $620.4 million in annual revenue. A portion of that revenue would be shared with the city of South Bend and St. Joseph County, under a gaming compact the tribe would be required by federal law to negotiate with Pence.
The South Bend Common Council has unanimously adopted a resolution supporting the Pokagon plans. Recently, the Bureau of Indian Affairs held public meetings on the environmental impact statement as part of the process to take the casino land into federal trust.
