An Indiana House committee passed two bills Thursday morning that could have a significant impact on Northwest Indiana’s economic future.
The Ways and Means committee passed a casino bill that would allow boats like Majestic Star Casino to move on land and a measure to allow $9.4 million in annual funding for the proposed South Shore train extension that would connect the line to Munster and Dyer.
Rep. Hal Slager, R-Schererville, and Rep. Ed Soliday, R-Valparaiso, co-authored HB 1618, which would provide an annual $9.4 million state funding match for the project, which is estimated to cost $571 million. The legislation requires the Regional Development Authority to devote the full appropriation for projects extending the Chicago, South Shore and South Bend Railway, and annual progress reports must be submitted to the state Office of Management and Budget.
Slager said the $9.4 million will be doled out, starting in 2016, for the period of a 30-year bond.
In the Ways and Means session, Slager said appropriations are typically stripped out and will be added to the House Budget Bill, or HB 1001. Both bills will need to garner enough votes by the end of next week in order to be sent to the Senate.
The casino bill — House Bill 1514 — has several pieces, but Majestic Star Casino stands to gain from a change in law allowing casinos to operate completely on adjacent land.
Majestic Star CEO Pete Liguori has said Majestic’s aging boats have put the casino at a competitive disadvantage in Northwest Indiana. The committee did make a change to the bill that would specifically impact Majestic, as it would require the company to relinquish one of its two casino licenses if it builds a facility on land. Liguori has said that would be complicated because having two separate operations has tax benefits.
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Indiana’s casino industry has seen a 28 percent drop in revenues since 2010 as neighboring states have expanded gaming offerings. The bill also eliminates the admission tax, allows live dealers at racinos and offers tax incentives for the Historic French Lick hotel and casino.
Though the bill could mean significant tax savings for casinos, local communities like Hammond, Gary, and East Chicago, which depend on casino funds for necessities like pothole repairs, would receive less revenue. The tax changes, which wouldn’t start until 2017, would trim annual tax payments from casinos by $120 million.
Although casino operators are pleased with the current legislation, they know a lot can change once the measure goes to the Senate as similar packages have failed in past years. Also, Gov. Mike Pence has said he doesn’t favor an expansion of gambling, but the industry isn’t clear what his perspective is on the package as a whole.
The Associated Press contributed to this report.