Indiana's casino industry is weakening and needs help from the state government to shore it up.We hardly need to remind state officials tom the state government to shore it up.
We hardly need to remind state officials that the casino industry is a major source of state revenue, not to mention local government support. But for the sake of everyone else, we'll note the wagering admission taxes brought in $694.8 million for state and local governments in the 2014 budget year that ended June 30.
The casino industry is also a major employer and a generator of significant economic impact through its suppliers across the state, not just in casino host communities.
But Indiana's casino industry is endangered not just by the economic downturn but also by competition -- existing and potential -- across the state line.
To get a sense of how much the casino industry in suffering, compare that $694.8 million in tax revenue for fiscal 2014 with the $900 million or more a year the casinos earned on a consistent basis before the Great Recession and before the demise of the Cline Avenue Bridge.
A legislative study committee led by state Rep. Tom Dermody, R-LaPorte, is looking at the health of the gambling industry in Indiana, including the 11 riverboat casinos and the two land-based casinos at horse racing tracks.
Among other things, they have learned Indiana has the second-highest tax rate for casinos in the Great Lakes area. Casino officials say tax cuts are needed to make Indiana properties more competitive with their counterparts in neighboring states — especially tribal casinos that pay little to no gaming taxes.
They also asked legislators to consider eliminating the wagering tax on table games.
Majestic Star CEO Peter Liguori told the committee his company spends $5 million a year for a crew that rarely moves the boats, simply because Indiana requires casinos to float rather than be based on dry land.
Allowing Majestic Star to build a land-based casino on the dry land the company already owns, closer to the hotel and parking garage, would open Buffington Harbor to other uses, including public access and potential development.
Indiana should be open to changes that would aid the industry, including permission to build land-based casinos on land already owned by each casino.
Otherwise, Indiana's casino industry is likely to lose its competitive edge to surrounding states. And that could sink not only the riverboats, but also state and local government services.