Preservation of the casino industry is perhaps the second biggest issue for Northwest Indiana in this session of the Indiana General Assembly.
Securing state funding for the Northwest Indiana Regional Development Authority is, of course, No. 1. But the importance of the casino industry to the Northwest Indiana economy, and to state and local government revenues, cannot be discounted.
Casino gambling is the sixth largest industry in Indiana. It pours hundreds of millions of dollars into state coffers.
On Wednesday, the Indiana House approved a package of gaming industry changes aimed at improving the strength and flexibility of casinos and their equine cousins, racinos. As competition heats up in neighboring states, Indiana's casinos on its northwest and southern borders, especially, need to be able to compete for market share.
State Rep. Tom Dermody's House Bill 1540 not only has the potential to save 13,000 Indiana gaming jobs, but also would put more Hoosiers to work at aging riverboat casinos are replaced with inland casinos, state Rep. Charlie Brown said.
HB 1540 not only allows casinos to replace their large boats with land-based casinos, on their existing footprint, but also provides state tax incentives for new construction. Building a land-based casino means no longer needing a crew to sail a boat that never leaves the dock anyway. Spend that money instead on employees who actually provide a valuable service to the casino and its customers.
HB 1540 also continues a "free play" tax credit for casino marketing programs. Casinos asked for this so they would not be taxed unfairly for wagers they give away. That makes sense. Without it, they would be taxed up to 40 percent on revenues they don't receive.
The legislation also requires a study of how local governments use their gaming tax revenue. This should serve as a reminder to local officials to spend that money wisely. Casinos were authorized as a way of revitalizing the economy in host cities, don't forget. Local governments depend on that money. The study will show to what extent, and why.
The health of the casino industry is important to Northwest Indiana, and to the state as a whole.
The Indiana Senate should support HB 1540, which offers a needed tonic.