By Dan Carden, Times of Northwest Indiana
dan.carden@nwi.com
INDIANAPOLIS | State gambling tax revenue is poised to grow next year and in 2011, even as Indiana sees a decline in sales and income tax revenue.
Annual riverboat wagering taxes should total $554.5 million through June, according to a new revenue forecast. That's up $13.4 million from the May forecast and 1.7 percent more than in the 2009 state fiscal year, which ended June 30.
Riverboat admission taxes are set to grow as well. The forecast estimates Indiana will get $16.4 million in admission taxes, about 27 percent more than last year.
Gambling taxes, including the Hoosier Lottery, riverboats and racinos -- horse track casinos in central Indiana -- are the third largest source of state revenue. Five riverboat casinos on Lake Michigan call Northwest Indiana home.
However, the biggest percentage boost in gaming revenue will come from the two downstate racinos, which opened last year. The forecast predicts racino tax revenue of $117.2 million through June, up 86 percent from last fiscal year.
Still, riverboat tax revenue far exceeds racinos. Riverboat tax payments to the state, which include admission taxes, should total $570.9 million this year, with boats paying millions more to local governments through development agreements.
Mike Smith, executive director of the Casino Association of Indiana, said the casino members of his organization are hopeful Indiana gaming will have a steady year.
"It seems as though we've had some stabilization in the business, and hopefully the economy will continue to improve," Smith said.
However, he noted region casinos are facing attendance drops because the Cline Avenue bridge closure is making it harder to get to the casinos.
On Tuesday, Gov. Mitch Daniels said he would cut $300 million from K-12 education and spend the state's $1 billion reserve fund to cope with an estimated revenue shortfall of $1.8 billion through June 2011.
The shortfall is due to a decline in projected revenue from the state's two main sources: sales and income taxes.
Indiana expects sales tax revenue of $5.9 billion through June, down from $6.15 billion last fiscal year. In 2011, sales tax revenue is predicted to be $6.17 billion, just barely topping 2009 levels.
Individual income tax revenue in 2011 will not even reach 2009 levels. Last year's income tax revenue was $4.3 billion. In 2010, forecasters expect a 12.5 percent drop to $3.8 billion and a slight improvement in 2011 to $4.1 billion.