ELWOOD — Hoosier Park may be flirting with bankruptcy, but the racetrack and casino won’t likely get any help from the governor.
During a scheduled visit in Elwood to discuss the state budget on Wednesday, Gov. Mitch Daniels told The Herald Bulletin that he has no intention of bailing out Indiana’s two struggling racinos.
Both Hoosier Park and the Indiana Live casino in Shelbyville paid $250 million licensing fees to the state.
Now, Jim Brown of Hoosier Park is saying those fees are crippling the company’s ability to survive, especially in today’s bleak economy.
Daniels blamed lawmakers for the $250 million licensing fee for the state’s racinos. “I was for an auction of the licenses to find out what they are really worth.”
Brown said Hoosier Park’s revenue for its first year fell far below what lawmakers projected when they established the $250 million licensing fee.
The casino’s projected annual revenue was $265 million, Brown said, but as the casino approached its one-year anniversary, only $217 million had been collected.
Daniels argued that the casino exceeded revenue projections, but used a different method to measure the racino’s success.
While Brown analyzed total annual revenue, Daniels’ results were measured in revenue per day, per machine. The average daily revenue estimate per machine when lawmakers considered the licensing fee was calculated at $262, according to numbers supplied by Daniels.
According to those same numbers, Hoosier Park actually took in $280 per day, per machine.
While lawmakers could consider tax breaks for the racinos, Daniels has no plans to offer relief. “This is just not a time to be bailing out businesses.”
Daniels believes Centaur, the company that owns Hoosier Park, is looking for the state to resolve its unrelated financial troubles. “Their problems are they’ve got a huge debt load from out of state.”
The licensing fee, Daniels said, was necessary for the state’s taxpayers. “Every penny of those licensing fees went to property tax reductions so they’re saying they want higher property taxes, and I disagree.”
More than 1,000 Hoosiers work for the Hoosier Park racino in Anderson. Daniels said he is not worried about the stability of those jobs, despite recent news that the casino could file bankruptcy. “The jobs and the track in the community, that’s going to be a long-term success.”
If Centaur doesn’t run the racino, someone else will, Daniels explained.
Sen. Tim Lanane, D-Anderson, objected to the governor’s refusal to bail out one of Anderson’s largest businesses since Daniels is in support of a measure to offer support to the Capital Improvement Board, which would bail out Lucas Oil Stadium.
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Daniels opposes tax breaks for Hoosier Park
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