INDIANAPOLIS — Live table games for racinos, allowing casinos to build on land and changing the way admission tax is collected at casinos are still all being discusses by lawmakers as possible ways to help Indiana's struggling casino industry.
The Interim Study Committee on Public Policy met on Wednesday to hear from representatives from Indiana's 13 casinos on ways to make them more competitive with new casinos in Ohio, Illinois and Michigan.
The two biggest proposed changes would allow the casinos currently on riverboats to move their gaming inland as long as they stay within their current footprint and allow for live table games at Hoosier Park Casino & Racing in Anderson and Indiana Grand at Shelbyville.
Jim Brown, president and COO of Centaur Gaming, which owns both racinos, testified before the committee Wednesday. He said Indiana has a "bizarre law" now that allows them to have games such as poker and blackjack that are policed by an automated dealer. He said allowing live dealers would create more than 600 jobs between the two racinos and generate more than $22 million in capital investments.
Back in 2007, Centaur lobbied for the bill that allowed electronic games in racinos. Now, facing even more competition from neighboring states, they are saying it doesn't make sense to have computers running roulette wheels and craps tables.
"We can't maintain the status quo," Brown said. "The racetrack casinos can't expand at will. We need help to do that."
Rep. Terri Austin, D-Anderson, is on the committee. She thinks live gaming has a "good shot" at getting passed during the 2015 legislative session. She said the changes will likely come in one large, comprehensive bill but thinks live table games will be included.
"I think it's a no-brainer for Hoosier Park to switch out machines with human beings to serve as live dealers for their customers," Austin said. "To me, that's not an expansion of gaming."
Allowing casinos to build property on land and put gaming machines inside them would also be a major change to the gaming industry. What's currently being discussed would allow the casinos to build on their current footprint only. They wouldn't be allowed to relocate; if they had space available, they could build a gaming facility on land.
Some of the lawmakers wondered if that would be a possible expansion of gaming since casinos would be able to purchase more slot machines and table games if they built bigger facilities. Currently, the Legislature has no say over how many machines casinos can have or when they can add more. That is controlled by the Indiana Gaming Commission.
Despite the concerns, chairman Rep. Tom Dermody, R-LaPorte, said he thinks both of the proposed changes have bipartisan support in the committee.
Sen. Carlin Yoder, R-Middlebury, said he doesn't think the casino industry should be stagnant while the states around them keep increasing the level of competition.
"I think we need to take a closer look at what we mean by expansion of gaming," Yoder said. "I don't think that means we should just let the gaming industry stay sedentary."
Promotional play and admissions tax were also discussed as possible ways to give the casinos a more even playing field when it comes to getting customers.
Currently, casinos are charged $3 every time someone walks through the doors of their facility, whether that person is gambling, staying at the hotel or going to a restaurant. Casino owners say that as their facilities become more diverse, people come in and out a lot more often, thus skewing the admissions tax.
Promotional play is a way for casinos to entice people into their buildings through free wagering credits. Casinos are currently taxed on those as well, which discourages them from giving away more free credits. The new casinos in Ohio are currently not taxed at all on free play promotions.
The committee will meet for the final time on Oct. 30 to come up with a final proposal for the 2015 session.