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Horseshoe Casino Hotel Plans Cancelled

INDIANA – As reported by the Northwest Indiana Times: "Renewed lawmaker interest in gambling revenues torpedoed plans for a multi-million hotel at Horseshoe Casino, Horseshoe General Manager Rick Mazer said.

"A $220-million hotel was part of a larger, approximately $556 million Horseshoe improvement project Mazer had intended to propose to officials of the riverboat's owner, Harrah's Entertainment Inc., he said.

"…That was before lawmakers in February began eyeing a bigger share of casino revenues as a source of state funding, Mazer said.

"Proposals by State Rep. Earl Harris, a Democrat from East Chicago, and Republican State Rep. Jeff Espich, of Uniondale, sunk plans for the hotel, though neither measure survived the first half of the legislative session, Mazer said.

"Harris's plan would have added $1 to the admission tax casinos pay the state, as a way to raise about $14 million for property tax relief and to fund lakefront development and the Regional Transportation Authority.

"Espich had proposed a 1 percent increase in the top casino tax rate, to generate about $8 million a year to help fund a new Indianapolis Colts stadium.

"…The casino industry's claim that it can't afford a higher tax rate flies in the face of evidence other gaming venues would be willing to pay more than the 34 percent in taxes the state's 10 casinos pay on average, according to Espich.

"The state's 10 casinos paid a combined $742 million in taxes in 2004…"

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