Slots bill passes Ind. House

The Indiana House of Representatives voted Friday, February 23 to permit slot machines at the state’s two tracks. Legislators voted 54-39 to send House Bill 1835 to the Indiana Senate for debate, but not without changes. HB 1835 would allow up to 2,500 slot machines apiece at Hoosier Park and Indiana Downs.

If the bill were to become law each track would be able to receive a 10-year license to operate slots for a fee of $100 million. In its original form, HB 1835 set the franchise fee at $75 million per track. In addition, revenue generated by slots at the tracks would be taxed at a rate of 37.5 percent. Previously, the tax rate was set at 32.5 percent up to the first $150 million in revenue, with the rate increasing to 37.5 percent on revenue exceeding $150 million.

Rep. Trent Van Haaften, D-Mount Vernon, who authored the bill, told his colleagues the measure is an expansion of gambling in the state. However, the money generated by slot machines, is good for Indiana. HB 1835 would not only help stabilize Indiana’s slumping racing industry, it would generate upwards of $180 million in annual tax revenue for the state. The bill also calls for the $27 million annual subsidy paid to the industry from riverboat admission tax revenue to be directed to a new health insurance fund.

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