Indiana casinos report record revenue in 2002

INDIANAPOLIS - Communities that counted on a share of increased tax money from dockside gambling may have placed a losing bet despite record casino revenues last year.\nState officials are eyeing the Build Indiana Fund where casino tax money is stored as a way to ease the $850 million budget deficit, The Indianapolis Star reported Wednesday.\nThe state's 10 riverboats reported record revenue of more than $2 billion in 2002, according to figures released Tuesday by the Indiana Gaming Commission.\nDuring the last five months of 2002, after lawmakers made it legal for customers to come and go freely rather than take two-hour cruises on established schedules, the money from tables and slot machines rose sharply.\nCasinos took in $888 million between August and December. That compares with $767 million during the same period in 2001, when riverboats were required to cruise.\nWhen the Legislature legalized dockside gambling, it also subjected casinos to higher taxes.\nSome of that tax money was supposed to go to the 85 counties without a casino. But Gov. Frank O'Bannon's budget plan calls for using $33 million of the money that has been accumulating in the Build Indiana Fund and using it to shield public schools from budget cuts.\n"Our thought was that the Build Indiana Fund money has not been distributed yet, and traditionally, the Legislature has gone to the Build Indiana Fund as its first source of money for shoring up the general fund," said Michael Landwer, a deputy state budget director.\nBut some legislators and local officials are unhappy with the administration's idea.\nIndianapolis had planned to use its $4.9 million share on police and fire salaries and equipment and training.\n"We were counting on that money," said Steve Campbell, spokesman for Mayor Bart Peterson.\nFort Wayne, which also lacks a casino, had expected to receive $1.2 million, which it had earmarked for sewers, building projects or other items.\n"We felt as if we have been deceived," said state Rep. Win Moses, D-Fort Wayne. "We voted for that bill entirely on the basis of sharing revenue"