Wednesday, February 27, 2013

NWI Reports Casinos Slam Gaming Bill

From the Northwest Indiana Times:

A casino bill that riled local communities now is riling casino operators, following changes made by an Indiana Senate committee.

Radical revisions made to sections of Senate Bill 528 dealing with the admissions tax and the deductibility of free slot play have soured many casino operators on a bill they originally supported.

"To have people saying this is legislation to help our industry out, when it doesn't help us out at all, is very puzzling," said Dan Nita, general manager at Horseshoe Casino in Hammond.

The bill as originally introduced in the Senate would have helped Indiana casinos compete with casinos in Ohio, Michigan and Illinois.

Casinos in Ohio have 100 percent deductibility when it comes to free play, Nita said. The original bill would have granted that benefit to Indiana casinos, which currently pay taxes even on free play they give patrons as a bonus.

But the Senate appropriations committee knocked that down to where just $2 million of free play per casino can be deducted. Nita said his casino gives tens of millions in free play to patrons every year in various promotions.

At the $2 million cap, Horseshoe would realize about a $600,000 benefit when cross-border casinos are garnering a much larger benefit from deductibility, Nita said.

Those are the type of things corporate parent companies look at when deciding where to make investments in casino improvements or amenities.

In addition, the appropriations committee changed the bill's admissions tax provisions. As originally introduced, the bill eliminated the tax of $3 per head the casinos pay on each customer admitted. In its place, casinos would have paid a supplemental wagering tax equal to 2.5 percent of their revenue.

That tax swap was not intended to help casinos financially as much as it was intended to relieve them of the task of counting heads, Nita said. But the appropriations committee upped the supplemental wagering tax rate to 3.45 percent.

Nita estimates that would cost Horseshoe about $675,000 above what it currently pays in admissions tax.
"Why have a bill at all if it doesn't do us any good?" he said.

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See the full article here:

http://www.nwitimes.com/business/local/casinos-slam-gaming-bill-reversals/article_fff63b9b-7f61-56b4-988a-438fdf4cc79e.html