Terre Haute casino bill amendments soften blow to other locations

Ford, R-Terre Haute, introduced and the Senate Public Policy Committee approved, an amendment requiring the owner of a proposed casino to pay local governments in Madison and Shelby counties more than $500,000 per year and $900,000 annually to the Indiana Horse Racing Commission. The payments would make up for projected losses in gaming revenues and taxes at Hoosier Park race track and casino in Anderson and the Indiana Grand racino in Shelbyville. They would continue until those facilities get live dealers, which is scheduled to happen in 2019.

The committee approved another amendment from Ford extending "in perpetuity" $3 million annual payments from the Terre Haute casino owner to the Indiana Department of Revenue for maintenance of the historic West Baden Springs hotel. The original bill limited the payments to five years.

Alex Stolyar, senior vice president and chief development officer of Full House Resorts, Rising Star's owner, agreed to the amendments, saying Full House is working with other gaming operators to help ensure the industry remains competitive in the wake of competition from nearby states and from a planned Native American casino in South Bend. He said Full House earlier agreed to sell some of its state-authorized "free play" credits to Centaur Gaming, operators of the Anderson and Shelbyville facilities.

Mayor Duke Bennett led a delegation of government and community leaders who testified about what they termed overwhelming support for a casino that would operate as a satellite of the Rising Star Casino and Resort at Rising Sun. Business at that southeastern Indiana location has declined after a new casino opened in nearby Cincinnati.

Bennett described how Terre Haute has lost much of its manufacturing base and, while its economy has diversified, a casino would "give us a new opportunity to provide a different source of economic impact" that would not require tax breaks sought by many other prospective businesses.

"I've had a lot of response from people who are supportive of this and a lot of them aren't even gamblers," he said. "They just think, 'Why not here? Why not have that available as another amenity, another destination to help increase tourism in Terre Haute.?"

He said that a casino would be a "perfect tie-in" to the planned renovation and expansion of Hulman Center to include convention facilities, a project for which the state approved $37.5 million two years ago.

"We are ready for the cash infusion this casino can potentially bring to our area," said Karrum Nasser, City Council president. "This cash helps us build and improve our infrastructure with new roads and sidewalks; helps us tackle our urban blight; helps us build quality and life; and more importantly helps us diversity our business base to attract and retain new [college] graduates."

David Haynes, president of the Terre Haute Chamber of Commerce, said the casino venture "excites us as other promised economic development sits on a distant horizon and pales by comparison."

Greg Goode, executive director of government relations at Indiana State University, said the presidents of Indiana State, Rose-Hulman Institute of Technology, St. Mary-of-the-Woods College and Ivy Tech Community College-Wabash Valley, have endorsed the legislation.

"We realize that as our community is thriving, the university is going to win," he said.

Shawn Keen, assistant police chief, and the presidents of the local Fraternal Order of Police and International Union of Police Associations, also spoke.

Addressing concerns about a potential impact on crime by casinos, Keen said his review of peer-reviewed research has found no evidence of such an impact. Touting a 40 percent reduction in property crimes during the past nine years and a nearly 100 percent clearance rate on homicides, he said, "I would not support anything if evidence suggested all of our work could be undone."

Justin Groenert, director of government relations and public policy for the Southwestern Indiana Chamber of Commerce, was the lone opponent to speak. He cited a $50 million investment in a new land-based Tropicana casino in Evansville to replace an existing riverboat operation.

"This is legislation that positively impacts one casino and one community and negatively impacts others in the state," he said of Ford's bill. "With so many unknowns in the Indiana gaming industry right now, it seems more ideal to work with industry-wide issues vs. one-off requests like this."

The committee did not vote on the bill. Chairman Ron Alting, R-Lafayette, said panel members will "digest" the testimony.

"This is an enormous policy," he said. "There have to be a lot of people involved in it, including perhaps even the entire caucus of the Indiana Senate to see if they want something like this to move or not move."

Alting praised Ford for an "innovative" approach in drafting the legislation.

"Senator Ford ... understands the word persistence," he said. "I'm not sure where the bill goes but I can assure you one thing: If it doesn't go this year, it will be back next year."

The legislation is the second time Full House has sought to open a satellite casino. Efforts to set up such a facility in Indianapolis failed in 2015.