From the Muncie Star-Press:
Indiana’s uneasy relationship with casinos and gambling is about to face a test, if not this year, then in coming ones.
Like an addict hooked on crack, Indiana has come to rely on the millions of dollars that pour into the state’s coffers from its 11 casinos and two racinos.
Last year, the state received $812 million from gambling.
But state lawmakers have been reluctant, and rightfully so, to expand gambling, keeping it mostly confined to locations near other states, and on water based “riverboats” that once were required to leave the dock, but not anymore.
And the ploy worked. Only three states raise more revenue from gambling than Indiana, but that might not hold as neighboring states open their own casinos.
The competition means the state’s share of revenue, after disbursing shares to local governments, will decline from $567.5 million this year to $520.3 million in 2015.
Clearly, casino revenue is an unreliable source of income for the state.
Lawmakers should resist the temptation to expand gambling to new locations within the state. No Hoosier lives more than two hours (most significantly less) from a casino or race track. Opportunities to play the slots or game tables abound, and we don’t need more.
But where casinos now exist, they should be allowed to move from faux boats to land.
That would allow them to expand and upgrade their facilities to keep them competitive with newer facilities in Ohio and other states.
The future key to success is to transform the small towns that now host casinos into destination places where people can go to enjoy more than just slots and black jack.
That process is underway and it needs to be encouraged.
Finally, as gambling revenue continues its downward trajectory, Gov. Mike Pence and lawmakers should resist the urge to cut income taxes, a centerpiece of the governor’s campaign last fall.
Lawmakers, including Republicans, have given a cold shoulder to Pence’s proposed tax cut, saying they want to see revenue figures released in April before acting. We think cutting income taxes will adversely affect the state’s finances.
For good or bad, gambling is here to stay, but it’s not the cash cow it once was. The real question, though, is how will lawmakers deal with the huge loss of revenue when state agencies have already doubled down on spending?
Gambling on a tax cut or expanding gambling is not a prudent course of action.
http://www.thestarpress.com/apps/pbcs.dll/article?AID=2013303060018
