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Without relief, Hoosier Park's bankruptcy could be 'imminent'

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June 17, 2009

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Indiana Gaming Commission director Ernie Yelton has told media outlets in the state that without financial relief, Hoosier Park�s bankruptcy is �imminent.� The track, which paid a $250 million racino licensing fee and the current tax and fee rate paid on revenue is nearly 50 percent. The tracks�Hoosier Park and Indiana Downs�were also mandated to spend $100 million each on building its racino.

"I was repeating what representatives of Centaur (Hoosier Park's parent company) have been suggesting to particular legislators," Yelton told The Herald Bulletin in Anderson. "We don't take a position one way or another."

Some of the financial burden has already been alleviated as the horsemen�s associations representing all three breeds of horses have agreed to turn over a share of their revenue from the slot machines to the tracks. The current law calls for purses and breed development to receive 15 percent of the gross revenue from the slot machines. The agreement calls for the percentage to drop to 12 percent this year, 13 percent next year, and 14 percent in 2011 before being restored to the 15-percent level in 2012.

�When we gained slots at the tracks and the accompanying opportunity for statewide agribusiness development, our partners paid a heavy price, in the form of an unprecedented and exorbitant licensing fee and development costs,� said Larry Smallwood, chairman of the Indiana Horse Racing and Breeding Coalition, in a press release.�They stepped up and invested in this industry because they believed in the future of Indiana racing. We believe in our partnership and want to do what we can to achieve our shared success.�

Hoosier Park general manager Jim Brown point out to The Herald Bulletin that the 11 riverboat casinos in Indiana did not pay any licensing fee and has a gaming tax rate of 20 percent. �We are seeking the ability to be on a more level playing field with our competitors in Indiana,� Brown told the newspaper.

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