By Brandi Watters, Herald Bulletin Staff Writer
ANDERSON - In its first year, Hoosier Park's new casino brought in more than three million visitors, but fell victim to a virulent economy and a hefty state licensing fee.
Jim Brown, gaming manager for the casino, said legislators slapped the casino with a $250 million gaming licensing fee when it was built, anticipating that the casino would earn a revenue of about $265 million per year.
That didn't happen.
Instead, the casino managed to top $200 million but only ended up earning about $217 million.
The $265 million was also expected of Indiana's other racino, Indiana Live in Shelbyville, Brown said. "There was no history for our facilities and those were estimates generated by firms that specialize in this. Since that time, the economy has faltered."
Hoosier Park isn't the only casino to see a drop in revenue in the wake of the economy's downturn. The economic climate, Brown said, has proved that the gaming industry is not recession-proof. "The industry nationally has fared the way that the economy does."
Last October, a report revealed that Indiana's wagering tax and admission revenues fell from the previous year.
Indiana's French Lick casino's fall revenue was down $2.7 million from the same season in the previous year. Other Indiana casinos showed a similar stumble.
In Nevada, America's gambling capitol, October 2008 registered a 22 percent drop from October 2007 in its 10th straight month of declining revenues.
Ball State University economist Michael Hicks speculated in late 2008 that the downturn in gambling revenue was caused by an increase in gambling options for Hoosiers coupled with a stock market that turned into a gamble of its own.
With a $250 million licensing fee and a less than impressive first year, casino officials are hoping to get some help from the state legislator, Brown said.
In February, the House Ways and Means Committee voted in favor of a bill to tax breaks on wagering revenue to Hoosier Park, Indiana Live and Indiana's Blue Chip Casino.
Hoosier Park lobbyist John Keeler said the casino's parent company, Centaur LLC, was struggling to pay the high interest on the $250 million loan it took out to pay the state's licensing fee.
While the casino may have had its fair share of struggles in its first year, it added a much-needed boost in the local economy, attracting more than three million visitors to Anderson.
Anderson Mayor Kris Ockomon said the casino had helped the city over the past year by turning it into a destination.
The casino hosted 13 concerts over the past year, featuring headliners like Aretha Franklin, Trisha Yearwood and Charlie Daniels.
The city also got a boost from the monthly wagering taxes paid by the casino.
Since July 2008, Anderson has received $2,455,778.29. Due to its population, the city received the largest portion of wagering dollars.
Despite its early struggles, Hoosier Park is ranked fifth in total revenue of Indiana's 13 casinos.
Though revenues aren't as high as the state anticipated, Brown said, casino officials have been pleased with the progress they're seeing. "It hasn't exceeded our expectations, but everyone that's come to the facility appears to be having a good time and getting a great entertainment experience."
Vicki Johnson agrees.
The 55-year-old Huntington resident, who drove an hour on Wednesday to play the slots, said she does so every three weeks or so.
When she plays, Johnson spends enough to get VIP treatment at the casino and has enjoyed the venue's many concerts. "I just like it because they send me free stuff."
On Wednesday, Johnson was up $500 after spending only $1 of her own money.
Elsie Powell, 84, of Greenville, Ohio, isn't always so lucky. Most of the time, after making the one hour drive from Ohio, Powell loses money, but she and her husband keep coming back.
David Pinkton of Anderson said he thinks the casino has been good for the community. "It's made a big change."
Steve Wilson went to the horse track to gamble before the casino opened, but now spends most of his time on the slots side of Hoosier Park. "It's good for the community if people are playing smart and not mortgaging their house. Hopefully, it's helping the economy somewhat."
Elsie Powell is an example of the casino's influence on the local economy. Before Hoosier Park opened up the slots, Powell didn't see Anderson as a destination for entertainment and never visited the area. "I never had a reason to."
Now, Elsie and three million others are finding reasons to visit Anderson: the chance to hit it big.