Indiana’s gambling tax revenues down over $23 million

INDIANAPOLIS – Indiana’s gambling tax revenues are down for the first time in more than a decade – a sign that the normally booming industry is not immune to economic downturns.

For the first six months of 2008, the state collected $465 million in tax money from casinos, down from $488.6 million for the same period last year. The 2008 number includes taxes from the state’s 11 casinos plus two slot-machine facilities that opened in June at the state’s pari-mutuel tracks.

“To have everyone competing, the pie’s just not big enough,” said Mark Bommarito, vice president of sales and marketing for the French Lick Resort Casino.
But Indiana Gaming Commissioner Ernie Yelton cautioned against reading too much into the decline.

“Historically, the industry has been resistant to the economy,” Yelton said.
Most of Indiana’s casinos had less revenue last month than in June 2007.
The gambling industry is considered somewhat recession-proof, but a combination of factors has contributed to the recent decline in Indiana, said Ball State University economist Michael Hicks. Gas prices are high, and recent flooding could have kept some gamblers at home, he said.

But Indiana casinos might have an advantage over destination gambling resorts because they are close to home, he said.

“If I were in Atlantic City, I’d be nervous, because so many of the visitors have many more options,” Hicks said.

Gamblers have more choices in Indiana since the two racetrack casinos opened in early June. The slot-machine facilities in Anderson and Shelbyville generated $6.5 million in tax revenue that month.

“We’re really excited about our first full month of operations,” said Jim Brown, the general manager for gaming at Hoosier Park in Anderson. “We expect that our business levels will remain steady or increase as the year goes on.”

Brown estimates that about 200,000 people visited the Anderson casino and track since it opened June 2. Indiana Downs near Shelbyville opened June 9.

The two new casinos mean more competition for southern Indiana facilities that typically draw many of their gamblers from the Indianapolis area, including the French Lick Resort Casino in Orange County. Tax revenue for French Lick fell from $2.9 million in June 2007 to $2.5 million last month.