Senators looking at gambling options for new state revenue
By The Associated Press
Friday, March 18, 2005 12:04 AM EST
INDIANAPOLIS - Senate Republicans have discussed at least two gambling proposals that could reap hundreds of millions of dollars for the state, including legalizing and taxing video gambling machines now operating unlawfully in hundreds of bars, social clubs and truck stops.
Senate Republicans also are privately considering a proposal that would bring the state $75 million a year by taking it away from six of the state's seven counties with casinos, Senate Appropriations Chairman Robert Meeks, R-LaGrange, confirmed Thursday. Consideration of that plan was first reported Wednesday by The Courier-Journal of Louisville, Ky.
Meanwhile, Democratic Sen. Vi Simpson of Bloomington suggested Thursday that the Hoosier Lottery should consider offering keno. She said the game featuring computerized drawings could generate up to $50 million a year for the state's cash-strapped budget and be used to increase funding for public schools.
It was not clear whether any of those proposals could get beyond a discussion stage in the Senate, let alone pass that chamber, get through the House and be signed into law by Gov. Mitch Daniels.
But they were signs that lawmakers are still searching for new money to ease the state's budget crunch.
''I'm looking for revenue,'' Meeks said. ''Under every rock.''
Meeks said he could not provide details about the gambling proposals discussed privately among Republicans who control the Senate or when they would decide whether to pursue them. But the decisions would have to come soon, since Senate Republicans plan to complete their two-year budget plan by March 31.
Gambling options have been bandied about for weeks this session, but none has gained ground. Proposals to authorize slot machines at pari-mutuel tracks failed to clear a House committee, and Senate President Pro Tem Robert Garton has since declared them dead.
Although a top Republican was considering a bill to legalize video gambling machines now operating unlawfully in Indiana, he never pursued it.
Meeks has supported such a move for years, saying the machines already are operated illegally throughout Indiana with little law enforcement and without the state receiving a dime. There are no controls on payouts or who plays them, he said.
''There are kids playing them,'' Meeks said. ''It is not an expansion (of gambling), it's already there,'' Meeks said.
At least five states have authorized the machines at various venues. Meeks said Oregon takes in about $500 million a year from the machines.
Gov. Daniels said initial counts by state excise officers this year indicate there are thousands of the machines in Indiana now. Industry officials and state lawmakers have estimated the number somewhere between 10,000 to 15,000.
Daniels has not taken a firm stand on the issue, saying he has not decided whether Indiana should strongly enforce laws against the machines or simply legalize them.
Another proposal discussed by Senate Republicans would limit local distributions from casino wagering and admissions taxes at $2 million or 20 percent of the county or community's maximum property-tax levy, whichever is greater. The plan would not affect casino money collected under local development agreements.
The proposal would affect riverboat localities differently, depending on how much property taxes they collect. Some would not receive a cut because the money they get from casinos is less than 20 percent of their property tax levy. Evansville and Vanderburgh County fall into that category.
But Harrison County would lose $19 million a year in casino tax revenue, according to a review of the plan by The Courier-Journal. Communities in Dearborn County would lose about $26.6 million, those in Ohio County more than $5.8 million, and Switzerland County nearly $6 million.
Democratic Sen. Earline Rogers of Gary said a key component of the 1993 law that authorized casinos was to help areas such as Lake County and others that needed their revenue and jobs.
To take more money away ''leaves those local communities still at a point where we're still in need and still lacking,'' she said.
Simpson said the Lottery should consider offering the game keno, a sort of mix between between bingo and Powerball with multiple, computerized drawings each day. Several states have the game, with drawings held at bars, restaurants and other sites.
The Lottery has rejected the game in the past.
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