 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
 |
|
||||||||||||||||||
 |
 |
 |
|
||||||||||||||||
 |
 |
 |
 |
 |
|
||||||||||||||
 |
|
||||||||||||||||||
 |
 |
 |
 |
|
|||||||||||||||
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|
||||
 |
 |
 |
|
||||||||||||||||
 |
|
||||||||||||||||||
 |
BACK TO HEADLINES |
|||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||
| Indianapolis Star November 30, 2004 Slot-Machine Pitch to Get Fresh Legs in Legislature Devices can put ailing tracks in black, lobbyists say By Michele McNeil On the last night of live horse racing at Hoosier Park, 78-year-old Lillian Peacock studied the odds over a plate of chicken and mashed potatoes, ready to make her first bet. She comes to Hoosier Park nearly every day during the live racing season, spending money on food and gambling. The problem is there aren't enough customers like Peacock. Even on the final night of racing at Hoosier Park earlier this month, there were plenty of seats and virtually no lines to buy a drink or place a bet. Starting in January, lobbyists representing the horse racing industry will try for a fourth year to convince the legislature that turning horse tracks into "racinos" with pull tabs -- essentially slot machines -- will save a dying horse-racing industry and bring precious dollars into a depleted state treasury. Gambling is a key source of revenue for Indiana's state government, expected to top $900 million this year compared with $164 million 10 years ago. Gamblers in Indiana's 10 casinos lost $2.2 billion in 2003, ranking the state behind just Nevada, New Jersey and Mississippi in gamblers' losses. Horse racing has been one of the few forms of gambling to finish in the red. If Indiana wants to see gambling revenue continue to grow, some officials say, the state has few options beyond allowing slot machines at Indiana's off-track betting parlors and two racetracks. "They would be an asset to the state," said Peacock, who would like to see slots offered in Anderson. "They would draw bigger crowds; there would be more of an incentive for people to come." But critics say Indiana has enough legalized gambling, and the cost of crime and addiction that can result outweighs any extra money to the state. The case for slots When their supporters speak of added slot machines in Indiana, they call them "pull tabs," which work like a slot machine. The difference is that slot machine prizes are random, while electronic pull tabs have a set number of winners and losers. Most pull-tab proposals, including one endorsed last month by a bipartisan legislative committee, call for 1,000 slot machines each at Hoosier Park in Anderson and Indiana Downs in Shelby County, and 1,500 each in off-track betting parlors in Indianapolis and Fort Wayne. "This is not just about pull tabs. It's about horse racing and economic development," said Rick Moore, general manager of Hoosier Park. "There are other states looking to do this -- Michigan, Ohio, Kentucky." Adding 5,000 pull-tab machines would increase by at least 25 percent the number of slotlike machines in Indiana and could bring in about $70 million a year for the state budget, which has a nearly $800 million deficit. In a recent Indianapolis Star/WTHR (Channel 13) poll of 1,002 likely voters, 48 percent of Hoosiers opposed slot machines in horse tracks and a casino in Indianapolis, while 46 percent said the idea should be considered. But when it came to solving the state's budget crisis, the same poll showed expanding gambling was the only solution voters even mildly supported, especially compared with raising taxes. The state already taxes the 10 riverboats in Indiana at some of the highest rates in the country. Riverboats, which started as cruising vessels with limited passenger boarding times, are now essentially land-based casinos open 24 hours. In 2006, the state's 11th casino in French Lick is scheduled to open, using the last riverboat license authorized by the General Assembly. The legislature would have to act if it wants to add riverboat casinos. Since the first riverboat casino opened in Evansville in 1995, Indiana has grown increasingly dependent on gambling revenue. Gamblers contribute about $900 million a year to the state, according to the Indiana Department of Gaming Research. That's more than enough to pay the cost of housing prison inmates for a year and represents about 8 percent of the state's annual budget. The money raised by gambling is the equivalent of boosting the sales tax a percentage point -- to 7 percent. A struggling industry Last year, the horse tracks in Anderson and Shelby County brought in $5.3 million for the state -- $4 million from Hoosier Park, owned by Louisville-based Churchill Downs, and $1.3 million from Indiana Downs, owned by private investors. But in turn, the state subsidized them with $23 million from riverboat taxes. That's not helping Indiana's budget crisis. When lawmakers reconvene for the 2005 session in January, they must pass a new, two-year spending plan in the face of a nearly $800 million budget deficit. Slot machines are a proven money maker. In riverboats, they provide about 82 percent of a casino's income -- table games account for the rest. The financial windfall from 5,000 additional slot machines is attractive to Sen. Robert Meeks, R-LaGrange. A budget negotiator, Meeks said the state needs the money. Rep. Luke Messer, R-Shelbyville, and Sen. Robert Jackman, R-Milroy, will push pull-tab legislation. Their districts include the Indiana Downs track in Shelby County, which opened in December 2002 but ended with a disappointing first-year loss of about $3.9 million. For Jackman, offering money for the budget is a carrot for lawmakers. But his top priority, he said, is helping the people trying to build the horse racing industry in Indiana. "I'm trying to help the guy who's got 10 or 12 mares. The guy who provides the feed, the hay, the shoes for the horse," Jackman said. Indianapolis Mayor Bart Peterson has supported similar pull-tab legislation because cities would stand to gain portions of revenue from the gambling proceeds. But supporters will have to overcome some major obstacles. Gov.-elect Mitch Daniels dislikes the idea of expanding gambling but maintains that in this time of tough budget constraints, nothing is off the table, according to Ellen Whitt, his deputy chief of staff. Senate President Pro Tempore Robert Garton, R-Columbus, the most powerful lawmaker in the Senate, continues to oppose pull tabs. And Rep. Robert Alderman, R-Fort Wayne, could provide roadblocks in the House. He's the chairman of the public policy committee, where gambling legislation could be considered. He said any proposal to bring slot machines to Fort Wayne must be voted on in a public referendum. Pull-tab supporters did possibly gain some ground with the defeat in the May Republican primary of state Sen. Larry Borst of Greenwood, who opposed pull-tab machines at the tracks. Brent Waltz, who defeated Borst, got a lot of help from former Republican state Chairman Rex Early, who supports the horse racing industry and has an option to purchase a 3 percent interest in Indiana Downs. In addition to Capitol politics, there are also concerns that adding slots at racetracks will draw business from Indiana's existing casinos. In fact, the horse racing industry is counting on intercepting casino customers, according to the 2003 annual report filed with the Securities and Exchange Commission by Hoosier Park's owner, Churchill Downs. If pull tabs were legalized, the company would expect bigger crowds driven primarily by "casual fans," or those who are patrons of traditional gambling operations such as casinos. The Casino Association of Indiana, which represents the state's 10 riverboats, hasn't taken a stance on pull tabs because not all casinos agree on the issue, said executive director Mike Smith. However, Larry Buck, general manager of Belterra Casino Resort and Spa, said his riverboat would take a big hit if pull tabs were legalized and Indianapolis got a casino at its OTB parlor. Though Cincinnati is the biggest market for this southeastern Indiana casino, it also draws up to 15 percent of its customers from Indianapolis. "There are some people that will gamble in Indianapolis more frequently because it's convenient," Buck said. Social concerns Because Indiana's riverboats sit on the borders of other states, about 60 percent to 70 percent of their gamblers are from out of state. Placing slot parlors inside the state almost certainly will increase the number of Hoosiers who gamble, critics insist. Keith Whyte, executive director of the National Council on Problem Gambling, said the problem isn't just convenience because gambling is everywhere, including the Internet. "Accessibility has an effect, but it's not what people think because gambling is ubiquitous. These folks are already gambling," he said. Regardless of the concerns, horse racing fans such as 77-year-old Donald Mustard, of Muncie, think slot machines are the only way to save the state's horse industry by allowing bigger purses that make it more attractive to raise horses. A retired chemical salesman, Mustard comes to Anderson with his wife, Sarann. "This is a congregation for us," he said. "No one here wants to see the track close." Star reporter Kevin Corcoran contributed to this story. Call Star reporter Michele McNeil at (317) 444-2771. Pull-tab proposal A legislative proposal endorsed last month by the Interim Study Committee on Agriculture and Small Business Issues calls for: • 1,000 pull-tab machines, which would look like slot machines, in each of the state's two racetracks in Anderson and Shelby County. • 1,500 pull-tab machines in two off-track betting sites in Indianapolis and Fort Wayne. • Pull-tab machines that won't dispense coins but will award credits or certificates that can be exchanged for cash or prizes. • A 32 percent tax on pull-tab bets, which would subsidize racetracks and provide property tax relief. • An additional 15 percent of pull-tab revenue to increase purses paid to winning horse owners and foster the industry in Indiana. Indiana's legalized gambling Riverboats • 10 riverboat casinos are operating in Indiana. The first opened in Evansville in 1995. • They feature 17,601 slot machines or electronic games, 620 table games, such as blackjack, and 2,342 hotel rooms. • The average amount of money lost by patrons per visit ranges from $72 at Trump to $100 at Argosy. • On average, casinos make 82 percent of their money off slot machines. Horse racing • Indiana has two horse tracks. Hoosier Park in Anderson opened in 1994 and Indiana Downs in Shelby County opened in December 2002. • Hoosier Park has three off-track betting sites, in Indianapolis, Fort Wayne and Merrillville. • Indiana Downs has two OTBs, in Evansville and Clarksville. • In 2002, patrons bet a total of $147.6 million on live and simulcast horse racing in Indiana -- the most, or $63.1 million, at the Indianapolis OTB. Hoosier Park patrons bet the second most at $35.7 million. • In 2003, the industry got a $23 million state subsidy paid for by riverboat taxes. Lottery • Ticket sales began Oct. 13, 1989; the Hoosier Millionaire show made its debut Oct. 28 the same year. • For each lottery dollar, 56 cents goes to winners, 30 cents to the state, 10 cents to retailers and suppliers, and 4 cents for administrative expenses, advertising and promotions. • Ticket sales reached an all-time high in the 1999 budget year, with $681 million sold. Charity gaming • In the 2003 budget year, there were about 2,200 charity gaming licenses, with groups reeling in $560 million in gambling-related income. • Groups contributed $10.3 million to charities in the 2003 budget year; they kept $58.1 million for themselves. Source: Indiana Department of Gaming Research Indiana's gambling take Indiana had the fourth-largest total casino gambling revenue (the amount gamblers lost) of all states in 2003. The state also has the second-highest tax rate on casinos, behind Illinois.
* States, including Indiana, have different taxes on riverboat casinos. This is the overall rate when all casino-related taxes (such as taxes on admissions, wagering) are included and compared with total gaming revenue. Note: These figures do not include revenue at Native American-operated casinos. Source: American Gaming Association, 2003  |
|
|||||||||||||||||||||||||||||||||||||||||||||||||
 |
 |
 |
 |
 |
||
 |
||||||
 |
|
 |
||||
 |
||||||
 |
||||||
|
|
|
|
|
|
|
|