We’ve often urged state officials not to bet on a continuous flush of cash from casinos.
That advice takes on new urgency with each passing year.
The Fort Wayne Journal Gazette this week reports that Indiana’s gambling industry has probably hit its peak. If that’s the case, state government will rake in less money from casinos. And that means Hoosiers could be looking at higher taxes, spending cuts or both.
Start with a slow economy. Hoosiers cannot afford to gamble as much as they could even a few years ago. Then add perhaps the biggest factor — increased competition. In the past few years, two casinos have opened in Michigan and nine have opened in Illinois. That has no doubt taken a bite out of the northern Indiana casino market. A Cincinnati casino will open later this year, posing a threat to Indiana’s Ohio River gambling establishments. And Kentucky continues to debate whether to add casinos.
Then turn to the statistics. Last year, casino taxes brought Indiana $660 million, the third-largest source of state income (after sales taxes and income taxes). In looking at the future of casino revenue, lawmakers have budgeted down — $617 million for this year and $567 million for the next.
All of this testifies to the wisdom of what’s going on in French Lick.
As we have often argued in this space, the future of Springs Valley’s economy rests not on the single card of a casino. It also rests on golf courses and first-class resorts that appeal to big spenders, as well as amenities of all kinds that appeal to those of us with lesser means.
The casino remains a critical card in the community’s economic deck. Staking the community’s entire future on that single card is a bad bet.
Likewise, an expansion of gambling seems like a bad bet. It would only create even more competition among casinos.
In the long run, it will be wise to hold a diverse economic hand of several strong cards, not just a single trump.