Northeast Indiana can count itself lucky that it remains the only region of the state that is not entangled with the casino business.
What seemed to be easy money from casinos is beginning to fade. Casino owners are asking the state to adjust its rules to help them survive, and Thursday a legislative committee agreed to make changes.
For a quarter-century, Indiana raked in riches from gamblers in neighboring states that had no casinos. Strategically located Hoosier casinos exploited the Chicago and Cincinnati, Ohio, markets.
It took a while, but our neighbors figured out that they could license their own casinos and keep the money at home.
A news report last week said Indiana casinos are being “wracked by competition from new gambling operations in Ohio, native American casinos in Michigan and additional wagering options in Illinois.”
Indiana’s tax revenue from gambling slid by 13 percent last year to $653 million, the lowest level since 2002. Odds are (pun intended) it may never return to the levels of the gravy-train years.
Worried casino owners and legislators gathered in Indianapolis last month, searching for ways to halt their losing streak.
A study committee of House and Senate members unanimously agreed to recommend changes to the full Legislature for action this winter. The list includes much, but not all, of what the casino owners asked:
• Indiana’s 10 “riverboat” casinos on the Ohio River and Lake Michigan could move their floating casinos onto land on their existing sites. That likely would allow them to enlarge their operations.
• Two land-based casinos at horse-racing tracks in Anderson and Shelbyville could replace their electronic games with live human dealers. This supposedly would increase the appeal of these casinos, with a bonus of creating an estimated 600 jobs.
• The state would replace its casino admissions tax — $3 at riverboat casinos and $4 at horse track casinos — with “another source of revenue” that was not specified. Only three of the top 10 gambling states have admissions taxes. (Indiana still ranks No. 3.)
• The state would extend a new tax break casinos receive for “free play,” a marketing tool to reward loyal customers.
• The committee called for more help for the French Lick casino in Orange County, because it draws traffic to support the town’s two historic hotels. The committee did not offer any specific ideas.
The committee has to step carefully in order to avoid upsetting Gov. Mike Pence, who opposes any expansion of gambling. Commission members went out of their way to say the changes they propose are not an expansion.
Despite the committee’s efforts, it seems Indiana’s windfall from gambling has peaked, and anything beyond modest recovery looks like a long shot. It would be a safe bet to say we need a new strategy for paying the state’s bills.