By Scott Underwood, Herald Bulletin Managing Editor
ANDERSON - Local government and Hoosier Park officials say they are adamantly opposed to a state legislator's plan to put a casino in downtown Indianapolis to generate tax revenue for a debt-plagued Indianapolis sports board.
Bill Crawford, D-Indianapolis, wants to create the downtown casino by removing 500 slot machines from Hoosier Park and 500 from Indiana Live in Shelbyville, Indiana's two horse track-casinos, and 500 more machines created for the Indianapolis facility. A 10 percent gaming tax on the 1,500-machine facility in Indianapolis would generate an estimated $20.5 million to help the Capital Improvement Board pay down its debt.
The board, which has financed Lucas Oil Field and other sports-related economic development in Indianapolis, has a projected budget deficit of $47.5 million next year.
But officials say the creation of an Indianapolis casino would exact a heavy toll on Anderson and Hoosier Park by reducing the number of visitors to the Anderson casino. They say that would reduce the money wagered there and, in turn, reduce the tax draw that Anderson and other Madison County government entities get from gambling at Hoosier Park.
"I think that's a big mistake," Mayor Kris Ockomon said. "That's going to be a huge hit for us. We knew about the push for a casino in Fort Wayne, but I was unfamiliar with this plan."
Ockomon said Anderson received about $220,000 in tax revenue from the casino last month, up slightly from previous months.
"That's something we rely on now," he said. "We used to hope it would be on top of everything else; now it helps keep us afloat. Any subtraction from that would hurt us immensely."
According to Crawford's plan, Hoosier Park and Indiana Live would split the gambling revenue from the Indianapolis casino. But John Keeler, assistant general counsel of Centaur, which owns Hoosier Park, said the measure would be bad for Hoosier Park.
He noted that the local casino is already feeling the burden of a $250 million licensing fee and "the state's highest rate" of taxation.
"We don't want anything down there competing against us," Keeler explained. "We believe a downtown casino would take market share from Hoosier Park and Anderson and also Shelbyville. We're looking for things to help us be profitable in Anderson. ... If the legislature does put a casino in Indianapolis, we certainly wouldn't want to be excluded from it."
Gambling revenue at the Anderson casino, which opened in June 2008, has fallen short of projections, and Keeler noted that Hoosier Park is lobbying the General Assembly for tax relief or permission to offer table gambling with live dealers. A tax relief bill passed the House but died in the Senate. Still, Keeler, said, some relief could come out of General Assembly conference committees this month.
Local state representatives say they will fight against the Crawford plan and are skeptical that it will find much support in the legislature.
"It's bad for Madison County because it will drain the casino and jobs," said Rep. Scott Reske, D-Pendleton. "It's not only us, it affects French Lick, Shelbyville - it would have a domino effect throughout the state. The casinos were placed in certain places for economic development."
Rep. Terri Austin, D-Anderson, said legislators from Madison County would stand united against Crawford's plan because the Anderson area would lose jobs, tax revenue and casino traffic if an Indianapolis casino were opened.
Rep. Jack Lutz, R-Anderson, said Friday he would have to learn more about the proposal before commenting.