Indiana house approves plan for land-based casinos

House Bill 1540, sponsored by state Rep. Tom Dermody, R-LaPorte, permits Hoosier riverboat casinos to move on land adjacent to their docks, provides state tax incentives for new casino construction, continues a "free play" tax credit for casino marketing programs and requires a study of how local governments use their gaming tax revenue.

It also authorizes the two central Indiana horse track casinos, known as racinos, to begin using live dealers instead of video dealers for their existing blackjack, craps, baccarat, roulette and poker games. The measure was approved 76-19. The entire Northwest Indiana delegation voted in favor of the proposal.

Dermody said afterward he was pleased to have strong, bipartisan support for advancing to the Senate what he believes are the most significant gaming policy changes in years."We recognize that this industry is like no others and those jobs are important," Dermody said.

State Rep. Charlie Brown, D-Gary, a co-sponsor of the measure, said it has potential not only to save the nearly 13,000 Indiana gaming jobs, but also put more Hoosiers to work as the casinos replace aged riverboats with new buildings.

For example, Gary's Majestic Star plans to invest between $95 million and $135 million in a new casino, along with new parking, dining and entertainment spaces, if allowed to move off its boats and onto land next to its existing hotel.

Debate in the Republican-controlled Senate, where the proposal is co-sponsored by state Sen. Jim Arnold, D-LaPorte, is expected to focus on the provision permitting live dealers at the racinos.

Senate President David Long, R-Fort Wayne, said such a significant change is bound to be unpopular with some southern Indiana casinos that believe they will lose patrons as a result. "It's whack-a-mole. You hit one thing and try to solve that problem and another one pops up," Long said. "It's frustrating."

Nevertheless, Dermody is optimistic state lawmakers will find a satisfactory compromise before the legislative session ends April 29. "It's a long time between now and April, we'll work through all the issues and go from there," Dermody said.