INDIANAPOLIS – A short legislative session won’t deter lawmakers from pushing significant policy changes related to two of Indiana’s largest vices – gambling and alcohol.
But the compressed 10-week period could reduce the likelihood of success.
“Because it’s a short session, and we are going into a big election year, it’s going to be probably difficult to get a lot done,” said Mike Smith, president of the Casino Association of Indiana and a former lawmaker himself.
But others believe the severe economic recession could help pave the way for change at Indiana casinos.
“We always make difficult policy decisions when we have an economic pistol to our head,” House Republican Leader Brian Bosma said. “When we need money, we come to the trough time and time again.”
When lawmakers convene Jan. 5, one of the biggest decisions facing them is whether to allow existing riverboat casinos to move to land-based operations, possibly after paying a fee to the state.
Other gaming issues include holding a referendum in Fort Wayne to gauge support for a casino and changing state tax structure for the state’s two racinos, which are at its two horse tracks.
The debate comes as the state faces an onslaught of competition from Michigan and other states including Ohio, where voters last month approved four casinos that are expected to open in just a few years. That means some legislators are concerned about protecting the state’s gaming tax revenue as much as growing it.
“My colleagues would rather not interact with gambling this session, but we are regulators of an industry that gives $900 million a year to the state,” said Rep. Matt Bell, R-Avilla. “We don’t have the luxury of saying this is uncomfortable to deal with.”
Although a special legislative committee recently made findings in support of some of the gambling issues, a similar group looking at the alcohol industry was divided.
That panel approved a few smaller provisions, such as allowing alcohol sales on Election Day and moving to a uniform ID verification system.
But the panel voted against the most significant alcohol proposal – allowing groceries and other retailers to sell carry-out alcohol on Sundays. Regardless, at least one bill on the subject has already been filed, and the issue could receive the first floor vote on the subject that anyone can remember.
Matt Norris, director of Hoosiers for Beverage Choices, said if lawmakers were creating regulations for the alcohol industry from scratch, there would be no question about allowing Sunday sales.
But because alcohol laws evolved over time, legislators fear the change would put locally owned liquor stores out of business because those stores currently aren’t open on Sunday and would see increased administrative costs compared with groceries.
“We are encouraging our members to push the effort locally and talk to their legislators,” he said. “More contentious issues are harder to pass in election years. And a short session makes it more of an uphill climb.”
Rep. Trent Van Haaften, D-Mount Vernon, chairman of the alcohol study committee, said he doesn’t expect the Sunday sales issue to pass.
That leaves gambling as one of the prime issues of the session.
“Anybody that tells you that something isn’t going to happen in the gambling arena doesn’t understand the hundreds of high-powered lobbying interests out there,” Bosma said.
“I don’t discount any possibility in this short session. They wield such dramatic power that there is always a possibility that it would pass. It is now a way of life in the General Assembly.”
House Speaker Pat Bauer, D-South Bend, said gambling bills usually start in the House, and he hopes the Senate would step forward if bills are to advance this session.
He said House Democrats were “clubbed” last session when they considered a bill to level out the tax structure for racinos. But it was often termed a bailout and died.
The casino association’s Smith said some small changes might have success, such as removing marine navigation requirements for riverboats, including having a captain aboard; freeing up the use of promotional alcohol for special events; and clarifying that the casinos won’t shut down in the event of a state budget impasse.
But all the heat will be on the major issues.
Land-based gaming
Now that the state essentially has two land-based casinos at its two horse tracks, this once-reviled option is gaining favor. But there is some confusion about what going land-based would mean.
One option is allowing riverboat casinos to expand onto land at their current location. Another is letting them move – perhaps closer to highways.
That is what Gary officials want to do with one of the two licenses there. In exchange for the change, the second license would revert to the Indiana Gaming Commission.
“Gaming is a billion-dollar industry in Indiana, and it provides tax revenues to the state and to our local communities,” said Sen. Earline Rogers, D-Gary, who has already filed a bill authorizing land-based gambling. “The commitment we’re offering is to keep the burdens low so Indiana’s industry can compete amidst the changing dynamics.”
Gov. Mitch Daniels said he has always found Indiana’s riverboats – which stopped cruising on the water years ago – to be “amusing fiction” and isn’t particularly bothered by going land-based so long as there is no expansion of gaming.
Local referendum
Since early this year, Fort Wayne Mayor Tom Henry has been pushing state officials, so far unsuccessfully, to allow him to have a referendum on casino gambling.
And the recent gaming committee findings don’t help his cause much since they oppose expanding casino gambling to any new counties or cities.
But with a Gary license possibly available, there will be pressure to put that license somewhere.
Bell said Fort Wayne’s chances are hurt because there is not a consistent message coming from the community. In fact, Henry is the only public official in favor of it, with many residents and officials publicly against having a local vote.
“Governments shift the burden down to gamblers,” Fort Wayne resident Charlie Wilson said. “And gamblers shift the burden to those they love the most.”
Henry argues that a recent study found a casino in Fort Wayne would make additional revenue for the state and that the committee agreed in general that a community should approve casino gambling through a referendum before moving forward.
But Van Haaften said an “argument could be made that a casino in every county in the state could increase revenue. Until there is a license available, it’s a moot discussion.”
Tax structure
Another key finding of the gambling study committee is that the tax structure set up for racinos is unfair. Each racino is required to give money off the top of its gross receipts to horsemen groups for breeding development and race purses.
But the state requires the racinos to pay taxes on the total gross receipts even though the racino doesn’t get to keep that money.
Changing the structure would cost the state millions of dollars in tax revenue annually at a time when revenue shortfalls have forced Daniels to cut education spending and lay off state employees.
“This provision is important to address the disparity of tax treatment between the racinos and the riverboats,” said Sen. Tim Lanane, D-Anderson.
“The change will maintain support for the state’s horse racing industry but alleviate some of the unnecessary tax burden on the racinos. The jobs provided by both of these industries are critical to our local economies.”
But Van Haaften and others believe any changes that will negatively affect state revenue have no chance. Daniels is also against giving a bailout or tax break to companies that voluntarily entered into the industry.
Source:journalgazette.net/
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