In Indiana, year-over-year win in June at the state’s 13 casinos rose 4.9 percent to 8.8 million, with .6 million going to the state in wagering taxes and .7 million in admissions taxes, according to Indiana Gaming Commission figures.
Revenue at Northwest Indiana’s casinos rose 6 percent to $75.2 million in June 2017 compared to last year–the largest year-over-year gain since February 2016. June also was the second straight month of growth in 2017, which, at $481.5 million, is down about 1.6 percent for the calendar year.
Horseshoe was number one in June with a 10.8 percent increase to $32.3 million. Horseshoe Senior Vice President and General Manager Dan Nita said, “We’re very pleased with the results this month. We had growth in all the key metrics: slots, table games, poker and visitor count.”
Ameristar posted an 8.7 percent gain to $17.8 million. Ameristar Senior Vice President and General Manager Matt Schuffert said, “June was just a good, solid month. It was good to see growth in both tables and slots.”
Michigan City’s Blue Chip had a 4.5 percent increase to $13.1 million, but the Majestic Star casinos in Gary dropped 7.1 percent to $12 million.
The state’s fiscal year also ended in June. During the year the legislature enacted a tax that will replace the current $3-per-patron admission tax with a new tax on wagering income, effective July 1, 2018. The rate casinos will pay instead of the admissions tax will be the ratio of admission tax to wagering revenue. The law sets a maximum rate of 4 percent for fiscal 2019, and 3.5 percent after that.
David Strow, vice president of corporate communications at Blue Chip parent Boyd Gaming, said, “In our view, the admissions tax penalized us for the significant investments we’ve made in nongaming amenities, such as hotel rooms and restaurants. We incur a separate admissions tax each time a customer moves between the casino and those amenities.” The change will result in lower taxes for Blue Chip, which paid 4.4 percent, a higher proportion of its gaming revenue than the other casinos. Horseshoe’s rate was 2.6 percent; Ameristar’s, 3.2 percent; and Majestic Star’s, a combined 3.7 percent for its two boats.
The new law also will phase out over eight years the “addback” tax, in which the state required casinos to add back into state income tax calculations the amount they deducted for wagering and admissions taxes for federal purposes. Casinos argued they were paying a tax on a tax and they state at last agreed.
The admissions tax has provided local governments with revenue. Supporters of the new law argued local governments should share revenue losses due to a decline in gaming, which peaked in 2009, with the state and the casinos themselves. Opponents pointed out the state gas tax was raised in the major roads and bridges legislation enacted in the 2017 session. State Rep. Scott Pelath said, “As you prepared to pay more, casino owners in Las Vegas still figured out how to get a tax cut.”
During the first four years after the admissions tax is replaced, the Legislative Services Agency estimated distributions in Lake and LaPorte counties will decline a total of $3.5 million. Over fiscal 2018-2021, East Chicago will lose about $320,000, Gary will lose $480,000, Hammond will lose $280,000 and Michigan City and LaPorte County will lose $590,000.
Casino host communities will lose a $48 million supplemental distribution and the $33 million wagering tax “set-aside” for non-casino communities each will be reduced in proportion to any decline in casino gaming revenue.
