HORSE RACING
Governor Mitch Daniels on Friday signed House Bill 1835, which will allow 2,000 slot machines at both Indiana harness racetracks -- Hoosier Park in Anderson and Indiana Downs in Shelbyville.
The legislation is set to go into effect on July 1, 2007. Both tracks will be required to pay $150 million in licensing fees by Nov. 1. Another $100 million will be due on Nov. 1, 2008.
Daniels had said he was opposed to any "net" increase in gambling and that he would veto any gambling expansion in Indiana. But he said he approved the bill because it was coupled with another bill that would crack down on illegal gambling in bars, truck stops and like venues. It was one of four major bills signed by Daniels.
"It's not perfect. It's a compromise," Daniels said in a news conference. "I understand the impact for Anderson and Madison County, but this was a statewide issue that affects all of Indiana."
Both Hoosier Park and Indiana Downs are required to spend more than $100 million each to build permanent structures within the next two years to house the slots. In the meantime, both may establish a temporary facility, and must adhere to Indiana Gaming Commission rules and standards.
As well, both the Anderson and Shelbyville venues will have a graduated slot machine wagering tax -- to the tune of 25 percent on the first $100 million of adjusted slot receipts per year.Thirty percent will be taken on the second $100 million and an additional 35 percent tax will be taken on revenues exceeding that amount.
This is the largest expansion of gambling in Indiana since the state authorized riverboat casinos in 1993.
Initially, Daniels said he wanted to allow open bids for the slots -- hoping to garner higher licensing fees from outside parties. However many lawmakers were skeptical, worrying that private entities might not use profits to help Indiana's horsemen and racetracks via increased purses.
The bill also allows for a new division within the state police force that could revoke alcohol, tobacco and other licenses from businesses with illegal gambling machines.
