Herald Bulletin
Legislation that would authorize up to 2,500 slot machines at Hoosier Park is now before the full House.
The House Ways and Means Committee endorsed the bill Tuesday on a bipartisan 14-8 vote Tuesday after making a couple of changes, including a provision that would directly steer some of the tax revenue from the machines to counties without tracks or casinos. The bill would also authorize 2,500 slot machines at the state's other pari-mutuel track, Indiana Downs at Shelbyville.
"Every step of the legislative process moves this bill closer to passage," said Rep. Terri Austin, D-District 36. "Like many others, I am encouraged that the bill continues to move forward. I look forward to a successful vote out of the House, and it receiving a fair hearing in the Senate."
In a Public Policy Committee vote on Feb. 14, Rep Jack Lutz, R-District 35, voted for House Bill 1835.
At the time, Lutz said, "The Anderson track draws crowds from all over Indiana. We must continue to provide support to the venue and ensure that any additional programs benefit the county through job creation and increased tax revenue, which will ultimately help our communities pay for local services. This measure requires 20 percent of the tax revenue from the local horse track machines to be remitted to Madison County beginning in July of 2009."
Should HB 1835 get through the House, the Senate awaits. Sen. Tim Lanane, D-Anderson, said he feels more optimistic about the bill this year than in years past.
"In the past it couldn't get a hearing," he aid. "But I've talked to the President Pro-Tem (Sen. David Long, R-Fort Wayne) and he said the bill will go to committee for a hearing.
"It won't be an easy situation. We know we'll have to garner votes for it to have a chance."
Estimates vary on how much the machines could collect, but Massachusetts-based Cummings Associates predicted 2,500 slots at each track could bring in $533 million a year. That would produce about $185 million in tax revenue, with 80 percent going to the state. Under the original bill, 20 percent of the wagering tax revenue generated at each track would go to local governments in their host counties.
Under a change approved Tuesday, each county involved, Madison and Shelby, would keep 5 percent of the tax revenue, with the remaining 15 percent spread among all counties that do not have tracks or casinos. The specific breakdown would be based on population.
"A bipartisan vote on a major bill this session - isn't that something?" Republican Rep. Jeff Espich of Uniondale said jokingly. Partisan tensions between the 51 Democrats and 49 Republicans in the House have intensified in recent days.
The bill by Rep. Trent Van Haaften, D-Mount Vernon, would allow each of Indiana's two horse tracks to pay the state $75 million for a license to have up to 2,500 slot machines. A 32 percent wagering tax on the first $150 million the machines bring in and a 37.5 percent tax on any money over that would go to the state and the two counties - Madison and Shelby - where the tracks are located.
The tracks and horse racing industry, starting in 2009, would give up the $27 million a year in subsidies they currently share from riverboat gambling revenue.
Supporters said slot machines would breathe life into the struggling race tracks at Anderson and Shelbyville, while providing the state with much-needed revenue.
The Legislative Services Agency estimates that the tax revenue that would be generated would be much lower than the report by Cummings Associates. LSA estimates the tax revenue would be up to about $53 million the first year and up to $85 million the second.