Friend and fellow blogger at Carl's Casino Quotes wrote about Indiana in A Match Made In Casinos on Thursday, February 19, 2009. In it, he included an article that is no longer archived at MSNBC about Indiana panel approves tax breaks for 3 casinos.
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The text of the full article is below, but in view of Treasurer Cahill's proposal, it would seem we need to do some fact gathering of the experiences of other states instead of continuing to accept the one-sided presentation of casino interests, including the paid casino mouth piece, Clyde Barrows.
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With all due respect, Treasurer Cahill has overstated the revenues and understated the expenses, but that's another post.
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What is striking about Indiana's experience are the similarities of the scenarios.
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The rosy scenario of a guaranteed revenue stream -
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A House [in Indiana] committee approved a bill to give temporary tax breaks to three Indiana casinos, including new ones at the state's two pari-mutuel horse tracks.
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Advocates said the casinos are struggling and
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need help to stay in business
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The same bogus argument of bailing out race tracks --
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Track officials said revenue from the slots was needed to keep their tracks and the horse racing in Indiana viable
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[a casino lobbyist said his client was] under severe financial distress and was paying high interest for loans it obtained to pay the slot licensing fees. He also said the track and the state had misjudged revenue projections from the slots.
"Quite frankly, the tracks blew it and so did the state," ....
"Quite frankly, the tracks blew it and so did the state," ....
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Indiana overstated revenues.
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Treasurer Cahill overstated revenues.
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First Indiana bailed out tracks. Then they bailed out slot parlors.
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Massachusetts is proposing slots to bail out tracks. Will we follow the same path?
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The handwriting is on the wall for all to see.
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All of this is before we discuss the impacts that aren't included, the construction jobs that are overstated, the cost of addiction (gambling's dirty little secret they don't want you to discuss) and the expenses that are understated.
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Massachusetts has been a wise trend-setter in many areas. Let's continue to be so and not follow the pack of casino lobbyists.
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By MIKE SMITH
updated 12:16 p.m. ET, Tues., Feb. 17, 2009
INDIANAPOLIS - A House committee approved a bill to give temporary tax breaks to three Indiana casinos, including new ones at the state's two pari-mutuel horse tracks.
The House Ways and Means Committee voted 17-7 Monday night for a bill to give tax breaks on wagering revenue for Blue Chip Casino on Lake Michigan, and casinos at Hoosier Park in Anderson and Indiana Live at Shelbyville. The bill now goes to the full House for consideration.
Advocates said the casinos are struggling and need help to stay in business. Critics said many other businesses in the state are facing hard times in the sagging economy, and it was not fair to single out the casinos for special favor.
The General Assembly passed legislation in 2007 allowing Hoosier Park and Indiana Live — then called Indiana Downs — 2,000 slot machines each at their pari-mutuel venues.
Track officials said revenue from the slots was needed to keep their tracks and the horse racing in Indiana viable, and they agreed to pay $250 million each over two years to get the slots, as well as spend at least $100 million each to build the new casinos. The state imposed a graduated tax on revenue from slots at the so-called "racinos," which opened last summer.
Under the bill, tax rates on the slot revenue at the tracks would be cut 5 percentage points for each of the next five years, reducing their combined annual tax liability by about $18 million per year.
John Keeler, a lobbyist for Hoosier Park, said its parent company, Centaur LLC, was under severe financial distress and was paying high interest for loans it obtained to pay the slot licensing fees. He also said the track and the state had misjudged revenue projections from the slots.
"Quite frankly, the tracks blew it and so did the state," he said.
The bill also would provide a $15 million tax deduction to Blue Chip for one year, to be phased down and out over five years. The deduction is projected to cost the state about $5 million in lost tax revenue the first year and less in subsequent years, said Democratic Rep. Scott Pelath of Michigan City, the bill's author.
Blue Chip's business has taken a hit since the opening of the Four Winds casino in Michigan, which opened in August 2007 about 10 miles from Blue Chip and is owned by the Pokagon Band of Potawatomi Indians. Blue Chip saw its monthly revenue fall from $26.7 million in July 2007 to $16.1 million a year later — a decline of nearly 40 percent.
Ryan Soultz, a lobbyist representing Blue Chip, said the tax deductions would allow the casino to enhance its marketing efforts and draw more customers.
Several lawmakers who voted for the bill said they did so with reservations, but said casino revenue was important to the state — especially during this recession — and they wanted to keep the bill alive in some form.
Rep. Randy Borror, R-Fort Wayne, said the bill sent a wrong message to other businesses that were struggling. He was among the seven who voted against the bill.
updated 12:16 p.m. ET, Tues., Feb. 17, 2009
INDIANAPOLIS - A House committee approved a bill to give temporary tax breaks to three Indiana casinos, including new ones at the state's two pari-mutuel horse tracks.
The House Ways and Means Committee voted 17-7 Monday night for a bill to give tax breaks on wagering revenue for Blue Chip Casino on Lake Michigan, and casinos at Hoosier Park in Anderson and Indiana Live at Shelbyville. The bill now goes to the full House for consideration.
Advocates said the casinos are struggling and need help to stay in business. Critics said many other businesses in the state are facing hard times in the sagging economy, and it was not fair to single out the casinos for special favor.
The General Assembly passed legislation in 2007 allowing Hoosier Park and Indiana Live — then called Indiana Downs — 2,000 slot machines each at their pari-mutuel venues.
Track officials said revenue from the slots was needed to keep their tracks and the horse racing in Indiana viable, and they agreed to pay $250 million each over two years to get the slots, as well as spend at least $100 million each to build the new casinos. The state imposed a graduated tax on revenue from slots at the so-called "racinos," which opened last summer.
Under the bill, tax rates on the slot revenue at the tracks would be cut 5 percentage points for each of the next five years, reducing their combined annual tax liability by about $18 million per year.
John Keeler, a lobbyist for Hoosier Park, said its parent company, Centaur LLC, was under severe financial distress and was paying high interest for loans it obtained to pay the slot licensing fees. He also said the track and the state had misjudged revenue projections from the slots.
"Quite frankly, the tracks blew it and so did the state," he said.
The bill also would provide a $15 million tax deduction to Blue Chip for one year, to be phased down and out over five years. The deduction is projected to cost the state about $5 million in lost tax revenue the first year and less in subsequent years, said Democratic Rep. Scott Pelath of Michigan City, the bill's author.
Blue Chip's business has taken a hit since the opening of the Four Winds casino in Michigan, which opened in August 2007 about 10 miles from Blue Chip and is owned by the Pokagon Band of Potawatomi Indians. Blue Chip saw its monthly revenue fall from $26.7 million in July 2007 to $16.1 million a year later — a decline of nearly 40 percent.
Ryan Soultz, a lobbyist representing Blue Chip, said the tax deductions would allow the casino to enhance its marketing efforts and draw more customers.
Several lawmakers who voted for the bill said they did so with reservations, but said casino revenue was important to the state — especially during this recession — and they wanted to keep the bill alive in some form.
Rep. Randy Borror, R-Fort Wayne, said the bill sent a wrong message to other businesses that were struggling. He was among the seven who voted against the bill.
3 comments:
This makes no sense to me. Why would he even propose this now when the business across the country is doing so poorly?
Tim, you need to do some homework.
I held my nose and voted for him the first time. This is a shallow publicity stunt and doesn't work.
Post some of Cahill's connections. This is material for a governor? Get a life, Tim! You need new advisors.
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