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Indiana Casinos Face Out-of-State Competition

INDIANA – As reported by the Indianapolis Star: "A huge share of Indiana's growing casino business comes from across the state's borders, where competitors are pushing hard to keep their gamblers at home.

"And if the out-of-state competition bites deeply enough into Indiana gambling revenues, it could have an impact on local and state governments that have come to depend on tax dollars collected from casino operators.

"The most aggressive competition may come from Illinois, where legislators this week could act on a proposal to add as many as three casinos in the Chicago area and relax rules on gambling at the area's four existing casinos. And earlier this month, the Ho-Chunk Nation of Wisconsin announced plans to open the nation's largest Native American casino south of Chicago.

"…Officials in Kentucky, Ohio and Michigan also are looking at the expansion of gambling to help fill growing budget needs of state and local governments.

"…While Indiana may not have a reputation as a big-time player in the gambling world, a 2003 study by the Center for Urban Policy and the Environment at Indiana University-Purdue University Indianapolis found it is among national leaders in a number of categories.

"Among the 11 states with state-regulated casino gambling, it reported that Indiana has the third-fewest casinos, but the fourth-highest overall revenues, the third-highest tax revenues as a percentage of revenues and the third-highest number of employees.

"The boats provide jobs for more than 15,000 workers -- many from economically depressed areas of the state -- and pay millions more each year in local taxes and incentives to their host cities and counties.

"…John Busam, editor of Midwest Gaming & Travel in Waseca, Minn., said he does not think two or three new casinos in Chicago would have a significant impact on the northwest Indiana riverboats.

"But John Brokopp, a gambling writer for the Daily Southtown newspaper in Chicago and several other gambling publications, is not so sure.

"…Among those facing the greatest competition could be Horseshoe Casino in Hammond and Blue Chip Casino in Michigan City.

"Horseshoe is the closest of the five northwest Indiana casinos to Chicago, while Blue Chip is the farthest from Chicago. Blue Chip also is facing potential competition from a proposed Native American casino in southwestern Michigan…"

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