Although the research that was organized and authorized by Indiana’s Casino Association (CAI), says that most casino gambling resorts in Indiana State are likely to garner approximately $800 million within the first 5 years after the establishment of the casino, it also indicates that in the end, the state would incur a loss of $350 million.
The 140, 000 square foot complex was launched last week, laying fears to states major casino gambling centers. It should be noted that the breaking ground of Four Winds Casino by the Pokagon Band, brings the number of casinos in the northern end to five.
However, the all the casinos in the state are classified as Class II. All these casinos, have approximately 1,800 slot machines all of which are also classified as Class II type. But, even with the casinos at the northern end being the Class II type, they have a huge potential of poaching a great number of customers from 11 casinos in the riverboat along with its two racinos. This would have a huge impact on the revenue.
According to the research mentioned earlier, more than 1,800 most of whom come from the 11 riverboats resorts are likely to lose their daily bread not forgetting the approximated $882 million that would dip over the period of 5 years, which is equivalent to over $73 million deficit in income taxes.
“The change in employment and revenue is likely to ripple. There will be an effect in induced jobs, local and state revenue collections, gross state output as well as personal income,” says the Spectrum Gaming report.
On what would be seen as impunity, South Bend Casino is not going to do as all casinos licensed by Indiana State, who pay 35% to the state from their gambling collection. The most likely thing the tribe would do is to try to negotiate with the state on what ‘small’ thing it is going to pay and not the 35% that is set by law.
The Tribe Succeeds
Unfortunately, the state does not have much within its powers to control the impending mess. According to Indian Gaming Act, it is possible for the tribe to fully operate without the approval!
This situation is likely to continue for many years to come unless there is an introduction of Class III type of gaming. If the latter happens, then it would be easy for the state to ask for a revenue sharing that is similar to the one paid by other casinos licensed by the state.
“Until necessary measures are taken by the Indiana State, Four Winds will continue to operate without any legal constraints and without paying anything substantive to the state, and this will be difficult for her competitors to do business,” says Spectrum.