Indiana state Rep. Tom Dermody, chair of the House Public Policy Committee, recently unveiled his much-anticipated legislative package regarding gambling. The proposed legislation would allow live dealers and remove the statute limiting the number of slot machines allowed at the state’s racinos in Shelbyville and Anderson. It also would allow riverboat casinos to move onto land within the footprint of their current facilities.
“We’ve done a lot of work during the summer. We see the need for some improvements to the industry, so I’m excited about that. It’s a long process obviously between the House and the Senate, and I’m looking forward to the opportunity to debate the issues,” Dermody said.
The bill seeks to create new jobs while helping Indiana casinos to compete with surrounding states. State Rep. Sheila Klinker said, “With the competition around the country and certainly in neighboring states of Indiana, we need to boost whatever we can in trying to help the casino owners. We just have to find ways to make it easier and more interesting for people. I think live dealers as well as land-based casinos are part of that question.” State Rep. Tim Brown said, “I think that’s in the eye of the beholder whether live dealers would help our state or not, and so that’s the discussion we’ll have.”
Dermody’s bill also would repeal language requiring cities and counties to approve ordinances for riverboat gaming and provide operators with tax incentives for making capital investments. The legislation does not eliminate or change the $3 admissions tax casinos pay per visitor. Dermody said the House Ways and Means Committee would consider any tax-related issues.
In addition, state Rep. Todd Huston filed House Bill 1275 that would remove restrictions on where gambling venues could be located and how many licenses could be issued. “It would clear the way for a casino in any place where the community wants one and where an operator feels it is financially viable,” Huston said.
He stated competition from neighboring states requires certain regulatory changes. “For many years we were the only game in town in the Midwest, so we could create a rather restricted environment. But as the industry changes, I think it becomes harder and harder for that state management to work,” he said. The measure, which is considered to have little chance of passing, would not go into effect before July 1, 2024.
State Rep. Alan Morrison also introduced two bills regarding sports gambling. House Bill 1073 would allow sports betting at casinos, racinos and off-track betting locations throughout the state. House Bill 1074 would allow racinos to offer fantasy sports games. “Gaming is something that this state has become extremely reliant upon, that revenue. As it’s been trending down, it’s incumbent upon us to figure out how to fix it or improve on what we have,” Morrison said.
The fantasy sports bill could be fully implemented right away, Morrison said. However, the sports betting law would provide a framework for readiness if and when federal laws change or if courts determine that states can regulate the practice. “If we have it on the books, where it’s up to our gaming commission, then we’d be ahead of the game on that,” Morrison said.
Also in Indiana, commercial casinos could face new competition from the Pokagon Band of Potawatomi Indians within the coming years. The tribe applied to the Department of the Interior three years ago to build a casino near South Bend. In one more year, said Indiana Gaming Commissioner Ernest Yelton, an environmental study is expected to be completed. Then, Yelton said, the state would be required to negotiate the terms of operation “in good faith.” The Pokagon tribe wants a Las Vegas-style casino but under federal law it only can offer electronic bingo machines.
Yelton said the state would not be allowed to collect gaming taxes, just enough to recoup expenses. The tribe “also is not subject to a lot of tax regulations that casinos are today, which gives them a really huge advantage when it comes to their marketing expenses,” Yelton says.
