It was announced that the decrease in revenue sharing has already affected LaPorte County in quite a negative manner. Due to this, Commissioners Vidya Kora and Mike Bohacek were given the important task to discuss the matter with legislators from both Washington D.C. and Indianapolis and to try to prevent any further tax cuts for gambling venues on the territory of Indiana.
Dave Decker, the current President of the LaPorte County Commission, stated that a new casino always leads to a drop in the revenues of the already established gambling venues, yet they still have generate profits.
Casinos in Indiana, on the other hand, claim that certain tax cuts or increase in allowable deductions should be considered by legislators. Otherwise, the gambling venues might not be able to compete with those based in neighboring states.
It was reported that the revenues of five casinos, located in Northwest Indiana, fell by 7.3% in 2014 as compared to the figures posted in 2013. According to the Indiana Gaming Commission, the decrease was mainly due to the launch of several new gambling venues in the nearby states.
Shaw Friedman, a LaPorte County attorney, stated that although casinos in other parts of Indiana might be facing financial problems, the Blue Chip Casino, based in Michigan City, seems to be doing quite well now and LaPorte County should be able to benefit from this.
Mr. Friedman also pointed out that it might be a good idea for the state of Indiana to use the $2-billion surplus it has to offset the losses from gambling revenues.
The auditor’s office of LaPorte County shared that back in 2011, the county collected the amount of $4 million from gambling activities and admissions taxes. Last year, casinos contributed only $2 million.
It was also announced that LaPorte County might hire lobbyists that are currently fighting casino tax reductions concerning venues along the Ohio River.
Back in 1993, when casinos were allowed to operate on the territory of Indiana, 25% of every wagered dollar went to local administration. However, Mr. Friedman pointed out that the amount dropped to 13% by 2012.
According to him, this was quite unfair and did not correspond to what voters were promised in 1993 when they took part in the referendum for the legalization of casinos in the state.
Mr. Decker commented that LaPorte County uses the money generated from its riverboat casinos for various important projects such as road maintenance and building upgrades. According to him, tax reductions during the current harsh economic situation would not be a particularly wise and easy choice.
