Bill authorizing the relocation of two Majestic Star casinos and a new gaming facility in Terre Haute survives a second committee vote
A bill that could change Indiana’s gambling landscape drastically has just received a major boost by legislators. The piece passed a second Senate committee vote on Thursday to now head to the full Senate floor.
Following a Thursday hearing, the Indiana Senate Appropriations Committee approved Senate Bill 552. The piece contains provisions for the legalization of sports betting and authorizes the merger and relocation of the two Majestic Star casinos into a single site in Gary. The new venue, if the piece of legislation gains the necessary traction in the state’s Legislature, will likely be located near the Borman Expressway.
In addition, SB 552 permits the license that will remain vacant from the merger of the two Majestic Star casinos to be moved to Vigo County. A new casino will likely be developed in the city of Terre Haute.
Despite the positive vote yesterday, SB 552 is not likely to have a smooth path toward taking effect as a law. The piece has only passed its second committee vote, but it has already gained opponents who are pressing press for amendments.
The Bill’s “Hold-Harmless” Provision
Lawmakers introduced certain amendments to the bill during yesterday’s hearing, and some of those were not received very well by mayors of Gary’s neighboring cities. The legislation contained the so-called “hold-harmless” provision that would have required the new Gary casino to contribute a portion of its gaming revenue to Hammond and East Chicago.
However, legislators removed that provision ahead of Thursday’s vote and replaced it with one that simply stated that the Gary property could share, at its discretion, a portion of its gaming revenue with Hammond, East Chicago, and Michigan City.
The mayors of the above-mentioned three cities voiced their opposition to the move, arguing that the new casino would impact their existing gaming operations and that a “hold-harmless” clause would offset that negative impact.
The bill’s sponsor, Sen. Mark Messmer, said yesterday that the provision needed to be removed so as to win committee approval. The lawmaker went on to say that they will try to re-insert the clause next week when the piece is to be reviewed by the Senate or once it heads to the House.
If SB 552 survives through all legislative hurdles, it will take effect on July 1, 2019.
As mentioned above, the piece authorizes the merger of the two Majestic Star casinos into a single venue. A plan about the development of that venue is already in the works. Gaming company Spectacle Entertainment revealed earlier this month that it intends to build a $300 million casino complex near Borman Expressway.
The property would feature a gaming floor and a 200-room hotel. According to Spectacle, it could annually generate gaming revenue of $75 million and create 400 new jobs, doubling the current staff of Majestic Star.
Follow us on Facebook and Twitter to stay up to date on the day’s top casino news stories.
