It seems that the situation in Indiana is going to get hotter and hotter, just at a time when the new gaming legislation is about to be brought forward by the state Governor Eric Holcomb. The lawmakers representing the local communities with casinos have presented a formal petition aimed at stopping the legislation and regulatory measure, as they claim that the Governor’s consent would break some promises made in the past and would also result in draining local budgets.
As a result, Indiana Governor has postponed the signing of the bill until the upcoming week, saying he was still to make a decision where to sign the new piece of legislation, or not.
The new gambling bill seeks to make the gaming tax system of Indiana more up-to-date. Unfortunately, this new legislation turns out to be a two-edged sword, as the measure could result in a decrease in the amount of money contributed by the state’s casinos to the local communities. Experts say that such a process could start in 2022, but according to communities’ representatives, the delay of the financial decrease does not mean the new piece of legislation is better than the current one.
What is more, some communities’ representatives claim that the new gaming bill breaks a long-standing agreement and expressed their hopes that the bill would not stay in its current form for long.
Up to date, the latter are guaranteed to receive a total of $48 million on an annual basis. If the existing law is changed and the new bill is brought into action, the gaming revenues could continue to decline, and so would the money contributed to communities.
Indiana New Gambling Bill
Indiana lawmakers have introduced the new bill, which if passed, would greatly change the gaming taxes in the state of Indiana. According to the supporters of the bill, the new piece of legislation would be beneficial to local casinos, as it would provide them with the chance to remain successfully working at a market environment of increasing rivalry.
The new bill would eliminate the admissions tax – the admission fee of $3 paid by every visitor of the gaming floor. According to the new legislation’s supporters, this tax had a negative impact on casinos as it discouraged them to other other attractions to their customers, such as for example dining and beverage areas.
On the other hand, a 3% tax on casinos gaming revenue would be charged under the new bill. Although the eventual impact of the bill on the state revenues as a whole would not be a big one, the new piece of legislation is expected to seriously hit small communities which operate casinos in the state. According to some fiscal analysts, the amount that would be stripped off the annual revenue of local communities, would amount to approximately $50 million.
- Author
Daniel Williams
