INDIANAPOLIS | A region lawmaker's proposal permitting Indiana's moored riverboat casinos to move on land adjacent to their current docks won approval Thursday by the first of two required House committees.
House Bill 1540, sponsored by state Rep. Tom Dermody, R-LaPorte, authorizes land-based gaming, provides tax incentives for new casino construction, continues a state tax credit for "free play" promotions and allows live dealers at the two central Indiana horse track casinos.
Dermody told the House Public Policy Committee that in the face of new competition from neighboring states, especially the more than 18,000 slot machines now available at Illinois bars and restaurants, Indiana casinos need tools to win back their players.
He said land-based gaming on property already owned by the casinos isn't an expansion of gaming, but will attract players who refuse to visit or don't like the occasionally cramped and aging multi-level riverboats.
"This is an opportunity to say, 'Hey, we want to try to do something.' Like we would for any other industry or any other business in our state that was struggling," Dermody said. "But know this, if we do nothing it won't stay status quo. It will continue to decline."
Taxes on casino wagers and admissions produced $653 million in revenue for the state and local governments during the 2014 budget year. That was a $99 million drop compared to 2013.
Peter Liguori, CEO of Gary's Majestic Star casinos, echoed Dermody's warning in telling the panel, "Our industry is under attack" from neighboring states.
Majestic Star has plans to invest between $95 million and $135 million in a new gaming facility, along with new parking, dining and entertainment spaces, if allowed to move off its casino boats and onto casino-owned land next to its existing hotel.
The committee voted 10-2 to forward the legislation to the House Ways and Means Committee for further scrutiny of the tax components of the measure. A hearing is expected next week.
Dermody is optimistic that panel, led by state Rep. Tim Brown, R-Crawfordsville, a co-sponsor of the proposal, will favorably report it to the full House, setting up a vote later this month to advance the legislation to the Senate.
Republican Gov. Mike Pence is remaining coy on whether he would sign land-based gaming into law.
Pence repeatedly has said he opposes any "expansion" of gaming, but consistently refuses to define what he considers an expansion.