The past two months have been quite eventful for the state of Indiana and its gambling industry. Its revenue from gaming activities fell considerably in 2014 as compared to what was generated the previous year. This imminently caught the attention of the Indiana General Assembly and local officials offered various solutions that could help the state’s suffering gambling venues.
Currently, there are as many as thirteen gambling facilities in Indiana. Of these, ten are boat-based, one is land-based. The state is also home to two racinos.
Experts attribute the substantial losses to the severe competition from neighboring states. It seems that players from the area prefer to engage in their favorite casino games in Ohio- and Illinois-based venues.
Ohio’s gambling industry could be said to be thriving as compared to the current situation in Indiana. A total of eleven casinos have opened doors on the territory of the state since 2012, and they brought millions of dollars to coffers. Many consider Ohio’s gaming facilities the biggest rivals of those based in neighboring Indiana. Officials from the latter state have been voicing their concerns for quite some time. And some have even tried to come up with solutions that would help Indiana’s suffering casino industry.
During the past few months, and the past two months, to be more precise, several bills were submitted for consideration by the Indiana General Assembly, which is known to be the state’s Legislature. Generally speaking, they all contained one particular provision, which suggested that owners of Indiana’s ten riverboat casinos should be allowed to move their venues to properties on nearby lands.
This proposal, however, was not particularly welcomed by some members of the state’s government. The reason for this was the fact that authorities considered it an attempt for local gambling industry to be further expanded, which, in turn, might lead to an increase in the number of people who show symptoms of gambling addictions as well as to other social problems.
Taxes imposed on local gambling operators and the permission of live dealers for gaming tables at the state’s two racinos were two other issues that some officials included in their proposals; others conveniently avoided such delicate topics.
On February 12, the Public Policy Committee of Indiana voted in favor of Rep. Tom Dermody’s bill, who is actually the current chairman of the committee. His proposed legislation suggested that riverboat casinos should be allowed to be moved onto land as soon as possible, certain tax changes should be implemented, and live dealers should be permitted for table games at local horse racing venues.
It is interesting to note that similar bills have been rejected by local authorities over the past several years. Yet, mere hours ago, it was announced that Rep. Dermody’s proposal was reviewed and backed by the House Ways and Means Committee.
The proposed tax changes were paid special attention. They are to come into effect as of January 2017. Under the bill, annual tax payments, deposited by Indiana’s thirteen gambling venues, would be cut by a total of $120 million, as admission taxes will be eliminated and wagering taxes will be adjusted, depending on the size of the casinos.
John Smith, general manager of Horseshoe Southern Indiana, one of the state’s emblematic casinos, did not seem particularly happy with Rep. Dermody’s bill. He stated that it favors certain gambling venues.
The state official rejected this claim and commented that his proposal for tax incentives might lead to more hotel and entertainment operators and real estate developers expressing interest in building new facilities on the territory of Indiana and thus, bolster local economy.
