The bill before Indiana House members Thursday might have been about creating a new casino license for Fort Wayne, but the discussion was far more complicated.
Rep. Ethan Manning – chair of the House Public Policy Committee – said he knows of four or five competing casino bills this session with different ideas. He encouraged the hearing as a starting point of the overall discussion.
Indeed, some of the testimony focused instead on transferring an existing casino license from southern Indiana to northern Indiana.
And other locales, including Indianapolis and Steuben County, don’t think they should be left out of the conversation on the best location.
A study released by the Indiana Gaming Commission in October found that Indianapolis was the top location for a casino relocation, followed by northeast Indiana.
While the Indianapolis region would bring the state more tax revenue, it would also hurt the two casinos nearby in Shelbyville and Anderson that help support the horse racing industry. Northeast Indiana was seen as more of an open market, impacting casinos in Ohio and Michigan.
Rep. Craig Snow’s legislation, House Bill 1038, would add a 14th casino license in the state and create a competitive bidding process for that license. A minimum $50 million license fee would be paid to the state by the casino operator.
The committee will return in January to amend and vote on the bill.
“This opportunity is too big of an opportunity for the city of Fort Wayne to pass up,” said Fort Wayne Mayor Sharon Tucker. “We recognize and see that the economic investment, the economic development that could happen because of a license being located in the city of Fort Wayne is tremendous.”
Tucker and the three Allen County Commissioners submitted a letter on Dec. 1 to legislative leaders with an agreement on how money from any local development agreement would be split. These agreements are generally between casino operators and local government to put money into growing a community.
Sixty percent of the revenue would be distributed to communities in Allen County based on population. The remaining 40% — estimated at about $11 million a year — would be put into a designated humanitarian fund for non-profits to help improve mental health and combat homelessness, addiction and other challenges. A board would be appointed by elected officials to oversee the distribution of these funds.
“Whether it’s in the city of Fort Wayne, or whether it is in the county … everyone in our community would have an opportunity to benefit,” Tucker said.
Tom Kelley, a prominent Fort Wayne businessman, said the proposed economic impact of a casino is more than $200 million annually.
“I believe very strongly that’s the vitality that our kids and our grandchildren need to keep moving forward. The city, the county, the state, have put Fort Wayne and northeast Indiana in a very enviable state to attract businesses,” he said. “And the more money we have for economic development, the more jobs we’re able to create, the more income for the state of Indiana.”
The bill does not include a referendum for voters to approve having a casino – something that all other gambling communities have passed.
Tucker said she is “never in opposition of allowing the public to speak” but she is concerned about slowing the process with a referendum. She and others acknowledged a tribal casino in the area is also a possibility, but a state-regulated facility would be better.
Several Hoosiers testified against a casino coming to the area, including Allen County resident Kristen Bissontz. She said it doesn’t match the family-friendly character of the area and will hurt local residents who become addicted to gambling.
“No one is talking about the social impact of what’s about to happen here when you bring a casino into virgin territory,” Bissontz said. “I have one study that says 83% of the revenue for casinos is from residents, my neighbors. You’re coming to pillage my village.”
Matt Bell, president of the Casino Association of Indiana, opposed the bill. He said adding a new license would bring instability to the industry.
“If y’all make the decision to create new licenses in Indiana, then you are injecting tremendous uncertainty into that investment market. You’re making it much harder to bring capital to the state of Indiana,” he said.
But the association doesn’t have a position on moving an existing license.
That is the route some believe makes more sense as the Rising Star Casino in southeastern Indiana’s Ohio County — owned and operated by Full House Resorts — has seen revenues plummet since casinos opened in Ohio and gambling has expanded in Kentucky.
Full House supported a bill last year to move its license to New Haven Indiana but the legislation died.
“We definitely agree that northeast Indiana should host a destination casino … we just disagree with the approach,” said Alex Stolyar, senior vice president for Full House. “We would rather see allowing us to relocate our license, rather than expanding.”
He also promised a high-quality casino resort that will be used to grow the region.
Indiana Capital Chronicle is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Indiana Capital Chronicle maintains editorial independence. Contact Editor Niki Kelly for questions: info@indianacapitalchronicle.com.