A majority of Indiana gambling operators would rather state lawmakers do nothing than approve legislation that would allow land-based casinos – a proposal aimed at shoring up the state’s industry against out-of-state competitors.

To the surprise of lawmakers on the Senate Appropriations Committee, the Casino Association of Indiana told the panel Thursday that it opposed a bill that sought to free up additional revenue and opportunities to compete against new casinos across Indiana’s borders.

“We have differences of opinion within our organization,” said John Barnett, the association’s lobbyist. “The industry felt it would be more prudent to delay this until next year.”

Their position boiled down to simple math: casinos that would like to expand on land to improve their ability to compete are outnumbered by gaming properties who would not take advantage of such a new law.

Senate Bill 405 would allow casinos to build on land if they paid $50 million fee to the state. It also would remove burdensome maritime requirements from riverboat casinos, freeing up as much as $2 million for additional marketing and investment.

The legislation also contains a provision to allow off-floor gaming tournaments, such as poker, and the ability to allow alcohol gifts to entice customers.

The changes have been pushed by Sen. Luke Kenley, R-Noblesville, and Sen. Ron Alting, R-Lafayette, as a means to protect the more than $800 million in taxes casinos generate for the state each year. That revenue is threatened by four future casinos that have been approved for Ohio, including Cincinnati; three new American Indian casinos in Michigan; and the lingering chance of casinos in Kentucky and Downtown Chicago.

But most gaming operators insisted Thursday they’d rather have no help than to allow casinos to move ashore.

John Hammond, a lobbyist for the Hollywood Casino in Lawrenceburg, said owners there just invested $330 million on a new barge it opened in July. He said the casino owners, Penn National Gaming,spent an extra $40 million building a boat than they would have had to build on land.

“We didn’t have the opportunity to go land-based, and those are the rules we thought we were playing under,” Hammond said. “The equity of us having making that investment and having to compete with someone right down the road who didn’t have to make the additional investment to make the hull, engines and other things on the boat has created difficulty for our folks.”

But John Barden, owner of the Majestic Star casinos in Gary, said he and other casinos that want to improve their properties deserve the chance.

But Ryan Soultz, director of government affairs for Boyd Gaming which owns Michigan City’s Blue Chip Casino, argued allowing Barden to move to a new location would not be fair.

“If the state would have presented us with the option of moving to an interstate location seven, eight or nine years ago, we would have taken a hard look at it, but we didn’t have that opportunity,” said Soultz. Blue Chip spent $170 million four years ago to improve its boat and $130 millionlast year on a hotel.

“Just to be clear, there is a value that is derived from the ability to move your license,” he said, “even if it’s just to a different location in the community that you’re in.”

Kenley said that’s why a $50 million fee would be assessed for the chance to build on land, which Rising Sun’s Grand Victoria Casino said it would consider.

“We sure would like to have the tools to compete against the influx of land-based gaming in Ohio,” said Lisa Hays,a lobbyist for that casino, which is located 40 miles from where a new casino will be built in Cincinnati. “Time is against us. We need it .We need it now.”

Barnett, the casino association lobbyist, said of the 12 members in its association, eight voted against SB 405. Blue Chip Casino is not a member of the group.

He said its members would rather deal with the issue more comprehensively next year when the state might have money available to offer casinos incentives for new development or adjust their tax rates to compete with Ohio in addition to the option for land-based operations.

Thank To : cincinnati