From the Indianapolis Star:
Casino revenues continued to slump last month amid increased competition from gambling options in other states, but the big, new loser was the state of Indiana.
Most of the state’s 13 casinos were quick to take advantage of a new law allowing them to deduct free-play coupons from their tax burden. The result: A $24.6 million hit to taxable state casino revenue.
The new law allows casinos to deduct up to $5 million a year on free-play promotional coupons that they use to draw in gamblers. But since the state’s fiscal year doesn’t start until July 1, lawmakers allowed casinos to take half that deduction, or $2.5 million, from May through June this year.
Several took full advantage, according to a monthly Indiana Gaming Commission report issued Monday. Six casinos deducted the entire $2.5 million in May, and all but three deducted more than $1.5 million.
Overall, tax receipts fell $14.1 million, or nearly 18 percent, compared with the same month last year.
About $7.5 million of the decrease was due to the free-play deductions, said Frank Brady, audit director with the gaming commission.
The tax break is intended to even the playing field with casinos in neighboring states like Ohio and Michigan, where free play is not taxed. It was the only major win for the state’s gaming industry during the legislative session that ended in April. Proposals to allow land-based gaming for riverboat operators and live dealers at the state’s two horse-track casinos were shot down.
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See the full article here:
http://www.indystar.com/apps/pbcs.dll/article?AID=2013306110028
