Prepared for the Interim Study Committee on Public
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Prepared for the Interim Study Committee on Public Policy Office of Fiscal and Management Analysis, Legislative Services Agency September 25, 2014 1988 2012 • Repeal of Constitutional •Evansville OTB closes. Prohibition 1989 2008 1997 • Lottery legalized 1998 • Racinos open: Anderson, • Pari-mutuel Wagering legalized • Casinos open: E. Chicago, Michigan City • Casino opens: Harrison County Shelbyville • Hoosier Lottery begins • Pull tabs at taverns legalized 1990 1996 2000 2007 • Casinos open: Gary, Hammond, • Casino opens: Switzerland • Charity Gaming legalized Rising Sun, Lawrenceburg County •Racinos legalized 1992 1995 2002 • Casino opens: Evansville 2006 • Pari-mutuel Wagering at OTBs • Dockside Gaming • OTBs open: Merrillville, Ft. • Casino opens: French Lick legalized Wayne, Indianapolis • Racetrack opens: Shelbyville 2003 1993 1994 2004 • French Lick Casino legalized • Riverboat casinos legalized •Racetrack opens: Anderson •OTB opens: Clarksville • OTB opens: Evansville Hoosier Pari-mutuel Charity Riverboat Racino Gaming in Lottery Wagering Tax Gaming Gaming Gaming Bars and Taverns State - 25% - 35% Admissions - of 91.5% of racino 10% Excise Tax on 10% Excise Tax on $3.00 per GGR price of gaming price of gaming admission to cards cards casino Counties - 3% of $0.24 per $1.00 of 2.0% - 2.5% of racino GGR up to $8 million annually ticket sales to wagers on live or state funds simulcast races Wagering – Supplemental - 1% 15% - 40% of of racino GGR until casino GGR License fee on July 1, 2012 License fee on (A lower tax organizations and taverns and game bracket of 5% game suppliers suppliers instead of 15% based on revenue Additional 15% of threshold) GGR to Horse Racing Industry (presently 10% to 12% of GGR) Type of Gaming FY 2014 Since Inception Hoosier Lottery $226.3 $4,562.0 Horse Racing 2.1 79.8 Charity Gaming 5.4 113.3 Riverboats and Racinos 694.8 12,181.2 Type II Gaming 0.4 2.3 Total $929.0 $16,938.6 Note: The table above does not include: (1) The license fees paid by the suppliers, operators, or owners of riverboats and racinos (e.g., $500 million paid by the racinos). (2) The share of racino GGR (15%) distributed towards purses and racetracks. The shares distributed to state funds are included above. (3) Revenues received under the Local Development Agreement by the local units. Revenue Source State Share Local Share Hoosier Lottery $226.3 $0.0 Horse Racing 2.1 0.0 Charity Gaming 5.4 0.0 Riverboat and Racino 478.5 216.2 Type II Gaming 0.4 0.0 Total $712.8 $216.2 Revenue Source State Share Local Share Hoosier Lottery $4,562.0 $0.0 Horse Racing 79.7 0.2 Charity Gaming 113.3 0.0 Riverboat and Racino 8,665.0 3,516.2 Type II Gaming 2.3 0.0 Total $13,422.2 $3,516.4 Fund or Unit FY 2014 Since Inception State General Fund $346.5 $5,362.2 Build Indiana Fund 81.3 2,497.0 Other State Funds 25.9 567.7 State Breed Funds 23.0 143.4 Property Tax Reduction Fund 0.0 49.3 Indiana Gaming Commission 1.9 45.4 Local Units with Casino or Racino 183.2 3,135.5 Revenue Sharing-Nonriverboat counties 33.0 380.7 Total Distribution $694.8 $12,181.2 $1,000 900 800 700 600 500 400 300 200 100 0 FY 1996 FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Riverboat Wagering Tax Riverboat Admissions Tax Racino Wagering Tax Number of Number Total Admission of Gaming Gaming in FY 2014 Hotel Casino Owner Location County Opening Sq Ft Positions (in M) Room Tropicana Tropicana Entertainment Inc. Evansville Vanderburgh 12/18/1995 38,360 1,191 1.1 339 Majestic Star I Majestic Star Casino LLC. Gary Lake 6/11/1996 40,720 1,242 1.1 0 Majestic Star II Majestic Star Casino LLC. Gary Lake 6/11/1996 37,300 1,058 1.1 300 Horseshoe Caesar’s Entertainment Corporation Hammond Lake 6/29/1996 108,000 4,067 4.3 0 Rising Star Gaming Entertainment LLC. Rising Sun Ohio 10/4/1996 40,000 1,398 0.8 294 Hollywood Penn National Gaming Inc. Lawrenceburg Dearborn 12/31/1996 142,000 2,972 1.9 295 Ameristar Ameristar Casino LLC East Chicago Lake 4/18/1997 54,000 2,165 2.4 290 Blue Chip Boyd Gaming Corporation Michigan City LaPorte 8/19/1997 65,000 2,296 2.3 486 Horseshoe S. IN Caesar’s Entertainment Corporation Harrison Co. Harrison 11/20/1998 86,600 2,404 2.1 503 Belterra Belterra Resorts Indiana LLC. Switzerland Co. Switzerland 10/27/2000 48,000 1,543 1.2 608 French Lick CFC INC. and Other Owners French Lick Orange 11/1/2006 49,719 1,276 0.8 686 Hoosier Park Centaur Holdings LLC. Anderson Madison 5/29/2008 54,000 1,925 N/A 0 Indiana Downs Centaur Holdings LLC. Shelbyville Shelby 6/6/2008 83,800 2,005 N/A 0 Total 847,499 25,542 19 3,801 8,000,000 1 0.9 0.8 6,000,000 0.7 0.6 4,000,000 0.5 0.4 0.3 2,000,000 0.2 0.1 2001 Recession FrenchLick Begins Great Recession Begin Racinos Operation 0 0 96-3 97-3 98-3 99-3 00-3 01-3 02-3 03-3 04-3 05-3 06-3 07-3 08-3 09-3 10-3 11-3 12-3 13-3 Events Statewide Casino Admissions The data shown is 4-Quarter Moving Average. Racino’s admissions are not reported and they have been estimated. $ 800 700 600 500 400 300 200 100 0 97-1 97-4 98-3 99-2 00-1 00-4 01-3 02-2 03-1 03-4 04-3 05-2 06-1 06-4 07-3 08-2 09-1 09-4 10-3 11-2 12-1 12-4 13-3 14-2 Southern Indiana 6 Casinos Lake Michigan 5 Casinos 2 Racinos 800 1 700 600 Begins 500 Begins 400 Expansion 0.5 Operations Operations Recession 300 Racino in Racinos Opening Racinos VGT 200 The Great French Lick Casino Opening Four Winds Casino Opening Indiana Cline Avenue Closure Des Rivers Plaines, Il, Opening Casino Casino/ Ohio Illinois 100 0 0 06-1 07-1 08-1 09-1 10-1 11-1 12-1 13-1 14-1 Southern Indiana 6 Casinos Lake Michigan 5 Casinos 2 Racinos Video Gaming Commercial Commercial Tribal Terminal Charity Horse Casino Racino Casino Locations Lottery Gaming Racing Indiana 11 2 NO NO YES YES YES Illinois 10 NO NO 4,464 YES YES YES Michigan 3 NO 23 NO YES YES YES Ohio 4 7 NO NO YES YES YES Kentucky NO NO NO NO YES YES YES •60 Casinos and Racinos •4,464 Video Gaming Terminal Locations in Illinois Statewide Number of Statewide Statewide Gross Gaming Statewide Effective Casinos and Gaming Floor Number of Revenue Gaming Gaming Tax Racinos Space (Sq Ft) Slot Machines (in $ M) Employment Rate Indiana 13 847,499 20,464 2,459 12,543 29.7% Illinois 10 366,250 29,275 * 1,810 * 7,687 35.0% Michigan 26 1,457,000 33,050 2,804 20,515 13.7% Ohio 11 937,000 11,275 1,264 10,000 28.8% Kentucky N/A N/A N/A N/A N/A N/A Note: The count of slot machines and gaming revenues for Illinois includes the impact from Video Gaming Terminals. The information reported is for latest available year. Tribal casino figures are estimated when not available. • Gaming Floor (in square feet): Region - 3.6 million Indiana - 847,499 • Electronic Gaming Devices: Region - 94,000 Indiana - 20,464 Population 21 and above 14.2% Personal Income 13.6% Gaming Floor Square Footage 23.5% Number of Slot Machines 21.8% Gross Gaming Revenue 29.5% $ 9,000 35% 8,000 30% 7,000 25% 6,000 20% 5,000 15% 4,000 10% 3,000 5% 2,000 1,000 0% 0 -5% 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Illinois GGR Michigan GGR Indiana GGR Ohio GGR Annual Growth 30.0% 25.0% 20.0% 15.0% 10.0% Regional Growth Rate 5.0% ANNUAL GROWTH RATES GROWTHANNUAL National Growth Rate 0.0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 -5.0% -10.0% Indiana Growth Rate -15.0% Rivers, Dockside Dockside Smoking Tax Rate Tax Rate Des VGT Gaming Impact Ban Increase Decrease Plaines, Begins Illinois Begins Continued Imposed Begins Detroit Detroit Casino Casino Tribal Tribal Tribal Addition, Addition, Casino Casino Casino Tribal Tribal Michigan Addition Addition Addition Casino Casino Addition addition Dockside French Racino Begins; Lick Gaming Tax Rate Casino Indiana Begins Increase Begins Casino / Casino / Racino Racino Ohio Addition Addition 1995 2014 RECENT MARKET COMPETITION The Impact of Four Winds Casinos in Southwest Michigan Four Blue Chip, Winds, Four Michigan New Four Winds, Winds, City Buffalo Hartford Dowagiac Year Opened 1997 2007 2011 2013 Distance from Blue Chip - 12 Miles 52 Miles 48 Miles Gaming Square Foot 65,000 135,000 52,000 27,000 Number of Slots 1,890 3,000 560 300 Number of Hotel Room 486 415 0 0 2013 GGR $ 159.7 M $ 365.6 M The GGR Impact of Four Winds Casinos Growth Over Prior Year 15.0% 1 10.0% 0.9 0.8 5.0% 0.7 0.0% FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 0.6 -5.0% 0.5 -10.0% 0.4 -15.0% 0.3 -20.0% 0.2 -25.0% 0.1 Blue Chip and HorseshoeandChipBlue Investments Blue Chip Investment Chip Blue Four Winds Opening Winds Four -30.0% Opening CasinoRivers 0 Investment Competition Lake County Casinos Blue Chip Casino Four Winds Opening GGR Loss to Indiana Riverboats $1,800 1,600 1,400 1,200 1,000 800 HOTEL, HOTEL, 600 NEW FACILITY 400 FLOOR INVESTMENT RIVERS CASINO, CASINO, RIVERSDES PLAINES IL OPENING PLAINES FOUR WINDS, FOUR NEW BUFFALO BUFFALO OPENING BLUE CHIP CHIP OPENED BLUENEW 200 CHIP MAKES BLUE GAMING HORSESHOE HORSESHOE HAMMOND OPENS 0 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 LAKE COUNTY CASINOS BLUE CHIP CASINO FOUR WINDS CASINOS Based on observed data, Four Winds casinos resulted in a loss of $60 M to $80 M in GGR annually to the Blue Chip casino.