Indiana House lawmakers recently passed legislation that would allow riverboat casinos to move onto land within their existing footprint, extend the free-play tax break and bring live dealers to the state’s two racinos in Anderson and Shelbyville. Representatives earlier removed a provision eliminating the admission tax due to concerns from local governments that they would lose revenue.
The bill now has moved on to the Senate Appropriations Committee, where a proposed amendment would require racinos to wait until 2021 for live dealers. State rep. Luke Kenley, Appropriations chairman, said the bill is a compromise that allows the racinos eventually to have live dealers, while smaller casinos gain some time to adjust to the future competition.
However, state Rep. Terri Austin said, “There were some strong agreements by the General Assembly that we want to address gaming as a whole, and to take the racinos out until 2021, after the governor’s second term, is unreasonable and it’s unwarranted. This is not going to help this bill pass at all.” She added delaying live dealers could cause support for the bill to “begin to unravel. You can’t fix the industry by leaving one part of the industry out.” She stated she will meet with other racino supporters and plan a strategy for the rest of the session.
The Senate measure eliminated language in the House version that required half of the racino games to be electronic. The Senate measure also removed the tax credit in the House version that would help casinos pay for building land-based facilities.
State Rep. Tom Dermody, said, “I believe everybody, from my opinion, is sold on why land-based is so important and the short-term jobs that it creates. It allows those facilities to compete with surrounding states.”
Still, no one knows where Governor Mike Pence stands on the measure. He repeated his claim that he does not support expanded gambling but would not clarify if land-based casinos are considered an expansion. “People know I don’t support an expansion of gaming in Indiana and candidly I think my reservations in this area have contributed to the fact the bill that emerged from the House this week was much more modest than some of the original ideas that were proposed,” Pence said. He added, “If the bill gets to my desk, I will evaluate it from the standpoint that I don’t support an expansion of gaming. But I also made it clear I am open to common-sense reforms and business practices that allow these businesses to remain competitive in an increasingly competitive marketplace across the Midwest.”
Ultimately, the decision rests with the legislature, since lawmakers can override a veto by the governor with a simple majority in both chambers.
Still, although Pence may sign the gaming measure, another measure he recently signed has caused concern throughout the gaming industry. The so-called “religious freedom” law could impact the state’s 13 casinos, which experienced a 10 percent revenue decline in 2014, mainly due to new competition in Ohio and Illinois. Casino marketing executives said they were ready to revise marketing plans if any of the boycotts threatened by convention organizers, tourists and others took place. However, Pence has asked legislators to amend the law, which is set to take effect July 1.
Caesars Senior Vice President Jan Jones Blackhurst said, “We actively oppose any forms of discriminatory legislation.” The company, which owns the Horseshoe Southern Indiana in Elizabeth and Horseshoe Casino Hammond, has been one of the gaming industry’s pioneers in marketing to customers from the LGBT community. Boyd Gaming spokesman David Strow said of the Blue Chip Casino in Michigan City said, “Boyd Gaming believes strongly in diversity and inclusion, and we strive to ensure that every person feels welcome when they visit us.”
Pinnacle Entertainment Executive Vice President Troy Stremming said the Ameristar East Chicago and Belterra in Florence “are dedicated to an environment than embraces all cultures, life experiences and backgrounds.” And at Full House Resorts, owner of Rising Star Casino in Rising Sun, Chief Executive Officer Dan Lee said, “If you want to have a gay marriage ceremony at the Rising Star, we’re here for you,” Lee said.
