Legislature's new deal enables the construction of new casinos in Terre Haute and Gary

Updated bill would allow mobile sports betting in Indiana

Provisions would prohibit wagering by anyone younger than 21 and not allow any bets on high school or youth sporting events.
2019-04-24
Reading time 3:38 min
Legislation to be voted this week would legalize sports wagering for adults ages 21 and older as of July 1 with a 9.5% tax rate. It is expected to bring in about USD 12 M a year. The proposal also decreases the fee that the new owner of the two casinos in Gary would have to pay in order to move a casino from Lake Michigan. Another provision would move up the state's 2021 date for permitting table games with live dealers at the two central Indiana horse track casinos in Anderson and Shelbyville.

Sports betting could be allowed by using mobile devices in Indiana under an agreement in the state Legislature on a wide-ranging gambling bill that would also allow construction of new casinos in Terre Haute and Gary.

The updated legislation, which was previously filed as Senate Bill 552 but has become House Bill 1015 due to the taxes tied to it, also would decrease the fee that the owner of the two casinos in Gary would have to pay in order to move a casino from Lake Michigan to a more convenient interstate location.

The bill would legalize sports wagering for adults ages 21 and older as of July 1 with a 9.5% tax rate. The tax rate is higher than some states, such as Nevada and New Jersey, where the rates are 6.75% and 8.5%, respectively. But it’s lower than others like Mississippi or West Virginia, where the rates are 12% and 10%. The latest version reinserts the language and would allow individuals to sign up in person at a casino or off-track betting facility, such as Winner’s Circle in downtown Indianapolis, or through an online process.

The Indiana House previously voted to allow sports betting only at casino sites. But bill sponsor Sen. Mark Messmer said Monday that not allowing sports wagering through smartphones would be an unreasonable limit and that House negotiators had agreed to the change. "If you have sports betting without a mobile app platform, you don't really have a very usable tool," he said.

Opponents of allowing sports bets by mobile devices call it a significant expansion of gambling that could lead to traditional casino games moving online. The proposed compromise would let the Indiana Gaming Commission issue regulations and start approving casinos for sports wagering.

"They were optimistic they could have rules ready in time for the NFL season," Messmer said. "That's really up to the commission on how fast they roll them out and get them into effect." The compromise is expected to be voted on as early as Tuesday or Wednesday by the House and Senate, as reported by The Associated Press.

Furthermore, a legislative analysis estimates the proposal on sports betting will bring in about $12 million a year. Provisions would prohibit wagering by anyone younger than 21 and not allow any bets on high school or youth sporting events.

The proposal would also allow the new owner of the Gary casinos to move from casino boats along Lake Michigan to an on-land site along heavily traveled Interstate 80-94 in the city. The compromise legislation also sets up a competitive process to select an operator for a new Terre Haute casino.

The proposal would require Spectacle Entertainment, which is buying the two Majestic Star Casino boats in Gary, to spend at least $150 million on a new Gary casino and pay a $20 million state fee for the move. That’s significantly lower than the $100 million fee the House Public Policy Committee recommended and a reduction from the $50 million fee the House Ways and Means Committee inserted into the bill.

The company has proposed a $300 million project building a new casino and 200-room hotel for Gary. The legislation would require a minimum investment of $150 million for the new Gary casino, which would be allowed to have 2,764 gaming positions—much higher than the 1,684 positions now at the two Gary casinos combined.

Gary Mayor Karen Freeman-Wilson said the compromise would boost the city's economy by moving the casino from a heavily industrial area that could be redeveloped into a cargo hub. She said having a Lake Michigan port, along with nearby railroads and highways, will attract shipping business now going through Chicago.

Spectacle has sought to transfer a Gary casino license to Terre Haute, but the compromise would allow any Indiana casino operator to submit a bid to the state gaming commission for the license, Messmer said. Under the proposal, voters in Vigo County would first have to approve a referendum next year allowing the casino in Terre Haute, and the operator would have to spend a minimum of $100 million on the new facility.

Spectacle is led by former executives of Centaur Gaming, which sold its horse track casinos in Anderson and Shelbyville last year to Las Vegas-based Caesars Entertainment Corp. The deal was worth $1.7 billion.

Another provision would move up the state's 2021 date for permitting table games with live dealers at the two central Indiana horse track casinos in Anderson and Shelbyville. Messmer said negotiators were still deciding whether to allow the change to begin Jan. 1 or July 1 of 2020.

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