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Indiana Cashes in on Casino Windfall

INDIANAPOLIS, Indiana – As reported by the Louisville, Kentucky Courier-Journal: "Two years of dockside gambling in Indiana have meant a cash windfall for the state's beleaguered budget and for local governments.

"But a higher overall tax rate has cut into the profit margins of the state's 10 casinos, reducing their take from the change. That's just what lawmakers had in mind when they approved the changes in 2002: Give the casinos dockside gambling to make them more competitive but take more money for such things as property-tax cuts and to help local governments statewide pay for sewer improvements, new fire trucks and other capital expenses.

"The casinos generated 45 percent more admissions and wagering tax revenue in fiscal year 2004 — which ended June 30 — than they did in fiscal year 2002, the last year the state required the boats to conduct gambling during two-hour cruises.

"That's $230million that state and local officials desperately needed to keep paying bills during an economic downturn.

"…They also are pleased with a change made last year to allow 24-hour gambling, rather than forcing the boats to close a few hours each night, even though it actually produces little additional revenue.

"…But despite the significantly higher gambling revenue — a 20 percent increase this year over the $2.3million in revenue statewide in 2002 — casinos say the change initially was neutral or just slightly better for their bottom lines…"

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