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INDIANAPOLIS – A plea for land-based gambling in Gary could also lead to a casino in northeast Indiana and more tax revenue for the state, a panel of legislators examining gaming issues heard Monday.
Don Barden, owner of the two Majestic Star casinos in Gary, said allowing him to build a land-based casino closer to existing highways in Gary and relocate his second license to northeast Indiana could mean $50 million in new tax revenue for the state.
“If it’s good for you, it’s good for me,” he told the Gaming Study Committee. “Let’s see how we can preserve this important industry.”
The Gary riverboats have struggled recently, with gross revenue and taxes paid to the state both down. Barden said his harbor location is not convenient for gamblers and lacks vehicle traffic. And he said competitors in East Chicago and Hammond have upgraded and expanded.
He said using one of his licenses to run a land-based casino along the Interstate 80/94 corridor would allow him and the state to regain stability.
And Barden surprised legislators by saying he supported all casinos in the state having an option to move to a land-based casino within the existing city or county where they are located rather than giving Majestic a specific advantage.
Riverboat casinos are required to be on a navigable waterway. But legislators have recently made exceptions for a casino in French Lick and two “racinos” at horse tracks in Anderson and Shelbyville.
Still, making a comprehensive move to land-based casinos would be a contentious fight in the legislature.
“We have got to get off this half-pregnant notion,” Barden told the committee, noting gaming is “here to stay because we’ve all become addicted to it” and the goal should be to protect the industry as a major state asset.
Gary Mayor Rudy Clay said if the legislature would grant the option of a land-based casino, the city wouldn’t block moving the second license elsewhere.
Barden said Monday he would like to move that license to an underserved area such as northeast Indiana or Fort Wayne. It takes legislative approval to move an existing casino to another county.
Robert Meeks, a former Republican senator from LaGrange, testified that there is a general consensus in support of a casino in Steuben County – located in the area where the Indiana Toll Road crosses Interstate 69.
He wants the committee to recommend a referendum on casino gambling for Steuben County in 2010 so that a license could be moved there in 2011.
“Steuben County is an ideal location,” Meeks said, noting the influx of visitors to the area’s lakes during the summer. “I am not necessarily a supporter of gaming, but I am a realist.”
Rep. Bill Crawford, D-Indianapolis, co-chairman of the committee, said he is reluctant to mandate where the Gary casino would move, preferring to leave that up to the Indiana Gaming Commission or a bidding process.
The city of Fort Wayne is also in the mix, with Mayor Tom Henry seeking a similar referendum on legalized gaming next year.
Henry will give a presentation at a future committee meeting when the specific subject is on the agenda. It arose tangentially Monday due to the Gary discussion.
Fort Wayne City Councilman Mitch Harper, R-4th, testified against the notion of legalized gambling in Fort Wayne and having a referendum. And he told the panel that no governmental body or official has come out in support of a Fort Wayne casino, even noting that the county commissioners, several city council members and the county prosecutor are against the effort.
Crawford questioned why Harper would oppose giving citizens the right to speak in a referendum.
Harper said there aren’t enough details to even know what the referendum would be. For instance, would it cover city residents or be countywide? And it is unclear what kind of gambling the citizens would be approving as he noted differences among a slot parlor, a small riverboat and a full-fledged land-based casino.
Legislators learned that in southern Indiana, the referendums to have riverboats were countywide. But in Lake County, the cities of East Chicago, Gary and Hammond were allowed to vote separately.
Jim Brown, general manager at Hoosier Park Racing and Casino in Anderson, asked the committee to use caution when considering moving a casino to northeast Indiana. He said one in five of its customers come from this area and it counted on that business when deciding to pay a $250 million licensing fee to build.
