INDIANAPOLIS (AP) — Lawmakers continued working Saturday on two gambling proposals — one that would crack down on illegal betting machines and another that would allow slot machines at Indiana’s two horse racing tracks.
Senate President Pro Tem David Long, R-Fort Wayne, said lawmakers may be getting close to a compromise on the illegal gambling bill. A previous proposal included creating a state prosecutor post to go after illegal gambling, but several House Democrats objected, saying local prosecutors are more accountable to the public.
A proposed compromise would remove the special prosecutor and would instead create an administrative position to handle the cases, Long said. That person could revoke alcohol, tobacco and retail licenses from businesses that house illegal gambling machines, sometimes called “Cherry Masters.”
“We’ve found an alternative we think will work,” Long said.
Lawmakers have until adjournment Sunday to reach a compromise on the bill. Many legislators say its passage would bolster the odds of passage for the proposal to authorize up to 2,000 slot machines at each of Indiana’s two pari-mutuel horse tracks.
Some say the two bills together could result in an overall decrease in gambling — something Gov. Mitch Daniels has said he supports.
“I think they’re linked, and I think they’re linked in the governor’s eyes, too,” Long said. “It’s very important that we get this done and not play any politics with it.”
Recently mailed property tax bills in some counties are putting more pressure on lawmakers to pass the slot machine bill, which would direct millions to property tax relief.
Under a draft proposal discussed Friday, the horse tracks in Anderson and Shelbyville could each pay a $250 million licensing fee to install up to 2,000 slot machines. That proposal would also permit riverboat casinos to pay a $25 million fee to go from a riverboat to a barge — allowing them to more cheaply build bigger facilities on platforms instead of boats.
Lawmakers are relying in part on that money to help pay for property tax relief this year, when homeowners’ property tax bills are expected to jump an average of nearly 24 percent statewide.
But Sen. Luke Kenley, R-Noblesville, said lawmakers were considering taking out the provisions in the bill that would allow barge facilities because some casinos objected to the proposal.
“We’re fighting our way through this deal with the riverboats fees,” he said. “I don’t know if it’s going to survive or not.”
The proposal discussed Friday would also impose a graduated slot machine wagering tax — 25 percent on the first $100 million of adjusted slot machine receipts each year, 30 percent on the second $100 million and a 35 percent tax on revenues exceeding that amount.
Kenley said that if the barge provisions are removed from the bill, lawmakers could use the first year of proceeds from the slot machine taxes to provide more property tax relief.
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