In Indiana, legislation has been introduced that would allow sports betting at casinos, racetracks and off-track betting locations; permit one of the Majestic Star’s two casino licenses to move to outside Gary, possibly to Terre Haute; and let racetracks install table games this year instead of waiting until 2021, which is the current law; among other gambling-related bills.
State Senator Jon Ford’s legislation would allow mobile and in-person sports betting and would require in-person registration. It has been referred to the Committee on Public Policy. “Legalizing sports betting in Indiana would expand our revenue resources and increase recreational opportunities for Hoosiers. Both in-person and mobile sports gambling are predicted to provide Indiana with hundreds of new jobs as well as an additional $150 million in annual state tax revenue over the next five years,” Ford said. Analysts said legalizing and regulating online sports betting would generate $1.3 million in revenue to the state in 2020 and $650,000 annually after that.
Ford’s bill would require a $100,000 application fee with a $50,000 annual renewal fee. The fees would go to a Sports Wagering Fund and be used to cover costs “incurred to administer sports wagering.”
Ford’s bill does not mention a tax rate, which would be set by the House. He has discussed a 6.75 tax rate; however, state Rep. Alan Morrison’s companion bill in the House proposes a 6.25 percent tax rate on adjusted gross revenue from sports betting. If Ford’s bill passes the Senate, the tax rate will be added when it moves to the House. “We want to try to keep the rate low, so we can be competitive and draw in as much of the gray market as we can. Nevada has been at 6.75 for quite awhile and that seems to work,” Ford said.
Currently in Indiana, land-based casinos are taxed at 15 percent on adjusted gross revenue of $25 million or less and increases to 40 percent for adjusted gross income at or above $600 million. Riverboat casinos pay 22.5 percent.
Ford’s measure currently calls for registering for online sports wagering on professional and collegiate sports in person at a casino. It would require sports books to use data “selected in its discretion” and allow a licensed sports betting operator to contract with up to three vendors.
Morrison’s sports betting measure would allow mobile sports wagering and would not require in-person registration. It would require a $75,000 application fee and annual $10,000 renewal fee. There would be no cap on the number of available licenses. Betting on collegiate games would be permitted. Use of “official league data” would not be required and no royalty or integrity fees would be paid to professional leagues. The Indiana Gaming Commission would regulate sports betting.
Morrison’s legislation would direct sports betting taxes and fees to the Division of Mental Health and Addiction, a special Sports Wagering Fund that would cover the state’s sports betting costs and to the state’s general fund. A fiscal note attached to the bill indicates the state could receive $2.2-$13.3 million in revenue beginning in fiscal year 2021.
If the sports betting bill becomes law, the Indiana Gaming Commission would start accepting license applications on July 1 and sports betting could launch on December 1.
Legislation also has been introduced allowing one of Majestic Star’s two Gary casino licenses to be relocated inland from its current harbor location. The other license would be required to be sold to operate an inland casino at least 100 miles from Gary. Current contenders for the license are Terre Haute, 164 miles away, and Indianapolis, 152 miles away. Hammond, Hobart and Merrillville have expressed interest but are too far away according to the legislation.
Officials at Spectacle Entertainment, the soon-to-be owner of Majestic Star, said they want to move one license to Terre Haute and keep the other in Gary. Terre Haute businessman Greg Gibson and Rod Ratcliff, former chairman and chief executive officer at Centaur Gaming, are Spectacle Entertainment’s principals. Full House Resorts also is interested in a casino in Terre Haute. In 2017, legislation failed on a tie vote in a Senate committee that would have let Full House move some unused gaming positions at its Rising Star Casino to a satellite casino in Terre Haute.
The measure would require a study on the Any move would require a study on the projected economic impact of an inland Gary casino on existing casinos in East Chicago and Hammond; a report would be due to the legislature by November 2020.
Meanwhile, the Terre Haute Chamber of Commerce has launched a pro-casino campaign, “Terre Haute Is All In.” Chamber Vice President Kristen Craig said, “Our board of directors, which represents dozens of businesses in west-central Indiana, really believes this could be a win for our members and the entire business community.” The chamber said a casino would be a $100-$150 million investment and create 300 to 400 jobs.
