Indiana lawmakers are not ready to guess how Caesars Entertainment’s $1.7 billion acquisition of Indianapolis-based casino and horse racetrack company Centaur Holdings LLC will impact the state’s gambling industry. House Public Policy Committee Chair Ben Smaltz said, “Predicting some issues is virtually impossible so if it does come, we’ll handle it.”
Las Vegas-based Caesars announced the deal in November; it’s expected to close early next year. The agreement adds Hoosier Park Racing and Casino in Anderson and the Indiana Grand Racing and Casino in Shelbyville to Caesar’s portfolio of 47 casinos in 13 U.S. states and five countries. The Indiana properties offer a total of more than 2,000 slots and electronic table games, plus live and simulcast horseracing.
In 2015, the Indiana legislature voted to allow the racinos to operate live table game dealers starting in 2021. Indiana Senate Public Policy Committee Chair Ron Alting said that date “shouldn’t change because a 100-pound gorilla is now the owner versus a couple local boys.”
However, citing the benefits of competition in the gambling sector, the Indiana Business Journal recently advised state regulators to use extra caution when reviewing the deal. The editorial noted the purchase of Centaur Holdings will be Caesars’ first post-bankruptcy acquisition and pointed out, as a result, Caesars will own four of Indiana’s five highest revenue generating casinos. Those casinos produce about 54 percent of the tax revenue casinos pay to state and local governments, an estimated $324 million.
Caesars officials said central Indiana is an attractive region for investment because it has a solid economy and is not saturated with casinos. They noted more than 6.5 million guests visit Centaur properties annually, with 1.1 million loyalty program members.
