Indiana casinos are struggling because of increased out-of-state competition.
Their profits started declining about a decade ago and haven't stopped.
State lawmakers are trying to temper those losses through legislation, but some casinos say the bill will do more harm than good.
Rising Star Casino Resort, located in the Southeastern corner of the state, was the first Indiana riverboat in the region. At its peak, the casino earned 160 million dollars.
But CEO Dan Lee says those days are gone. Last year the casino only took in $60 million.
"This was built here as the first casino in the tristate area," Lee says. "It made a lot of money in those days. We're sitting here now with it, trying to cover the payroll."
The casino's profits started declining in 2006. Now Rising Star ranks dead last among the state's casinos.
On a tour, Lee surveys the riverboat.
"This is fanciful. Now, we've got some light bulbs out here. Cliff is trying to find a cheaper way to fix all of those," he says. "It needs a little help, but it's not unattractive. And so we're looking at it and saying, OK, we can fix this."
Stopping A Financial 'Free Fall'
In 2014, Indiana's 13 casinos and racinos brought in $650 million in tax revenue - the lowest since 2002.
This legislative session isn't the first time lawmakers have attempted to alleviate that burden through legislation.
"Anything we do, if people think we are going to have revenues back to where they once were, is long gone," Rep. Tom Dermody, R-LaPorte, says. "We have to look at if we can we stop the free fall over the past couple of years."
Dermody is chairman of the House Public Policy Committee and author of a bill that would allow riverboats to build on-land within their footprint and authorize live dealers at the state's racinos.
The state legislature rejected these proposals in the past after high profile Republicans, including Gov. Mike Pence and Speaker Brian Bosma, labeled them an expansion of gaming.
"We have to look at if we can we stop the free fall over the past couple of years."
– Rep. Dermody
Dermody says the only thing his bill expands is the industry's ability to compete.
"We're just addressing things that are currently being done in a different manner," Dermody says. "We're not talking about adding boats or land base. We're talking about switching out facilities."
The bill's co-author, Rep. Terri Austin, D-Anderson, says the provision for live dealers at the state's racinos isn't an expansion of gaming but an exchange that could create 600 jobs.
"That brings people to work, brings in income tax and helps Indiana pay down its unemployment tax," Austin says.
Competition Or Complication?
The legislation aims to give Indiana casinos the necessary tools to compete with surrounding states. However, some casino owners argue that allowing live dealers will lead to more competition among Hoosier casinos.
Dan Lee of Rising Star says the one competitive advantage his casino has over the racinos in Anderson and Shelbyville are live table games.
"A significant chunk of our revenue also comes from Indiana behind us," Lee says. "And we're trying to figure out how to compete and bring more people from Kentucky and Ohio. But if we all of a sudden get ambushed from behind, meaning Shelbyville, it's like I can't fight a battle both directions."
The addition of slot machines in 2008 and electronic table games in 2010 at Indiana racinos has taken a large portion of business away from Rising Star and French Lick casinos.
French Lick Resort President Steve Ferguson says his resort's revenues have dropped $30 million since the racinos became involved in the gaming industry.
Ferguson says there are only so many gamers in the middle of the state, so new legislation will only complicate the issue.
"If you're going to do something that will hurt me, leave it the way it is. If you're going to start doing things that moves gamers around and away from French Lick, then I think I need help," Ferguson says.
Legislation in the past has attempted to help smaller casinos by lowering their tax rates. But this bill doesn't include any measures to specifically reduce the impact on these smaller casinos.
Dermody says those provisions could come later, but this bill is about equipping all casinos.
The bill is awaiting a hearing in the House Public Policy committee.
Dermody says, if passed, it would head to the Ways and Means committee before heading to the floor.
