Anderson's Hoosier Park wants parity with riverboats

ANDERSON - The tax breaks approved by the House Ways and Means Committee Monday for Hoosier Park should give the struggling casino some relief.

"We paid an unprecedented $250 million licensing fee and got strapped with an onerous tax and fee rate, the highest in the state," said Jim Brown, Hoosier Park's general manager of gaming.

On Monday, the House Ways and Means Committee voted 17-7 for some tax relief for Hoosier Park, Indiana Live (formerly Indiana Downs) and the Blue Chip Casino on Lake Michigan in the amount of 5 percentage points for the next five years. The relief only comes from payments to the state. Revenue generated by Hoosier Park that goes to Madison County and Anderson will not be affected, according to Brown. The tax relief will sunset after five years, said Brown, and he didn't want to speculate on what might happen then.

Brown explained that Hoosier Park parent Centaur took out a five-year loan on $250 million two years ago after slots machines were approved for the horse racetracks. Brown said the legislation is designed to make the tax breaks equal to the $45 million Centaur pays in interest on its loan.

Hoosier Park and Indiana Live were paying 47 percent of their revenue in taxes. Brown said that when the slots were being discussed, Centaur and the state came up with separate predictions on what kind of revenue the casinos would generate.

Centaur estimated 37 percent higher than actual revenue, said Brown, and the state estimated even higher. The riverboats, Brown noted, paid no license fee when they started up.

The tax breaks will allow the casino to be profitable, pay down its debt and invest in amenities, such as hotels or golf courses, things the riverboats have added to their list of attractions, he noted.

Rep. Jack Lutz, who is not on the Ways and Means Committee, said the tax breaks would be a good thing for Hoosier Park.

Linda Dawson, the Anderson's economic development director, agreed. She said it was her understanding that the tax breaks wouldn't affect distribution of casino revenue to the city and county.

"Hoosier Park (casino) is relatively new and facing this economy can have serious side effects on it," she said.

"The state received an abnormally huge amount in licensing fees. It has a responsibility to assist (the casinos) in this economy."

John Keeler, a lobbyist for Centaur who argued for the tax cuts to the Ways and Means Committee, said a couple of legislators said that if the state was going to receive less, the local governments should get less, too. But that was not in the final bill that left committee, Keeler noted.

The bill goes to the full House for consideration.

Brown said that the riverboats were given from 1995 to 2002 to be successful and during that time built their hotels, restaurants and golf courses.

"We just want parity with the riverboats," said Brown. "If we have the ability to succeed, Anderson could expect more in tax revenue."