The Herald Bulletin - 6:19 p.m.: Steep wager: New set of numbers in slots bill

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Sen. Tim Lanane, D-Anderson, left, testifies before the Senate's Tax and Fiscal Policy Committee Tuesday morning as Rep. Trent Van Haaften, D-Mount Vernon, House Bill 1835 co-author, looks on. After changes in the bill the committee endorsed the bill on a 9-3 vote.
John P. Cleary / The Herald Bulletin

In a packed hearing room the Senate Tax and Fiscal Policy Committee held a hearing on House Bill 1835 that would allow slot machines at the state's two horse tracks. After changes in the bill the committee endorsed the bill on a 9-3 vote.
John P. Cleary / The Herald Bulletin

Rick Moore, president and general manager at Hoosier Park in Anderson, speaks in front of the Senate's Tax and Fiscal Policy Committee during hearings on House Bill 1835.
John P. Cleary / The Herald Bulletin

Senate Tax and Fiscal Policy Committee chairman Sen. Luke Kenley, R-Noblesville, proposed an amendment to House Bill 1835 that lowered the number of allowable slot machines from 2,500 to 1,500 at each track. The amended bill passed the committee by a vote of 9-3.
John P. Cleary / The Herald Bulletin

Tax and Fiscal Policy Committee member Sen. Robert Meeks, R-LaGrange, proposed an amendment to House Bill 1835 that would raise the license fee for each track from $100 million to $400 million. The amended bill passed the committee by a vote of 9-3.
John P. Cleary / The Herald Bulletin

Published March 20, 2007 06:20 pm - INDIANAPOLIS — The prospect of slot machines at Hoosier Park is still alive, but officials have a new set of numbers to work with.

6:19 p.m.: Steep wager: New set of numbers in slots bill
Slot bill passes committee, but numbers change

Justin Schneider

INDIANAPOLIS — The prospect of slot machines at Hoosier Park is still alive, but officials have a new set of numbers to work with.

The Tax and Fiscal Policy Committee of the Indiana Senate Tuesday approved an amended version of House Bill 1835, which would bring slot machine gaming to Hoosier Park in Anderson and Indiana Downs in Shelbyville. The 9-3 vote means the bill will head to the senate.

“Let’s look at this as the glass is half full,” said Rick Moore, president and general manager of Hoosier Park. “The subject matter is moving forward.”

In one fell swoop, however, the committee drastically altered the bill. Two key amendments trim the number of slot machines at each facility to 1,500 and quadruple the sum of a one-time licensing fee to $400 million.

Hoosier Park officials and an East Coast gaming economist have said slot machine legislation could bring as many as 1,000 jobs to Hoosier Park. But that was under the old math: 2,500 slot machines per facility and a $100 million licensing fee.

Fewer machines mean less revenue, while a higher licensing fee means less money Hoosier Park owner Centaur Inc. can devote to construction of a new gaming room or launching a marketing campaign. Centaur declined to comment for this story.

“From what I heard today, it’s still open for discussion,” Moore said. “But $400 million is just a huge, huge number.”

Possibly an unprecedented number. Moore said the highest licensing fee he knows of for a “racino” is Pennsylvania at $50 million. In Iowa, licenses are either $5 million, $10 million or $20 million, based on population, and Maine uses a fee of $200,000, plus $100 per machine.

“It’s higher than any license fee I’ve seen for a racino,” Moore said. “Again, we’re talking a race track with slot machines, not a full-fledged casino with table games. I hope there’s time for discussion.”

Committee Chairman Luke Kenley, R-Noblesville, introduced the licensing amendment. He made reference to an Illinois gaming license auction that netted $530 million.

Moore believes Indiana Downs would have an equally difficult time paying the heavy license fee. Indiana Downs General Manager John Schuster said the horse industry is not asking for charity.

“We’re not asking for a handout — we’re asking for a hand,” Schuster said. “This will enable us to improve the health of the horse-racing industry in the state of Indiana.”

The two race tracks currently share a $27 million subsidy provided by the state of Indiana.

Opponents have accused the state of bankrolling a failing industry.

“The expansion of gambling is only a quick fix for a little while,” said Daniel Gangler of the Indiana Coalition Against Legalized Gambling, during Tuesday’s meeting. “It’s not a good economic solution for the long haul.”

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