MUNSTER, Ind. (AP)
- A proposal by the Pokagon Band of Potawatomi Indians to build a casino in
South Bend has existing casinos in northwest Indiana concerned about what it
will mean for their business, which already is seeing a downturn.
"A new casino in
South Bend would add capacity to an already saturated market,” David Strow,
the Las Vegas-based corporate communications director for Boyd Gaming Corp.,
the parent company of the Blue Chip Casino, told The Times of Munster.
The federal Bureau
of Indiana Affairs will hold a public hearing on April 14 in South Bend on a
draft environmental impact statement that says a proposed $480 million
tribal village and casino would have no significant effect aside from
traffic.
“This is an
important first step in a lengthy process that began over two years ago,”
Pokagon Band Chairman John P. Warren said in a written statement. “We are
very pleased to have reached this significant milestone.”
The tribe already
operates three casinos in Michigan. The largest is in New Buffalo and
includes a hotel and entertainment venue and it has satellite casinos in
Dowagiac and Hartford.
The existing
casinos are the Blue Chip Casino in Michigan City, the Horseshoe casino in
Hammond, the Ameristar casino in East Chicago, Majestic Star casinos in
Gary. The Blue Chip Casino is the closest to South Bend, about 40 miles to
the west.
A study by Spectrum
Gaming Group for the Casino Association of Indiana, of which Horseshoe and
Ameristar are members, said the proposed casino would “significantly affect
the investment climate and the competitive landscape.”
The four casinos
have seen gambling revenue decline about 14 percent during the last five
fiscal years, dropping to $1.02 billion from $1.18 billion, according to
figures from the Indiana Gaming Commission. Statewide, casino revenue is
down about 17 percent, dropping to $2.30 billion from about $2.78 billion,
over the same period.
Because Four Winds
Casino would be on land-in-trust controlled by a Native American tribe, it
would not be subject to the same tax and regulatory system as other casinos
in Indiana. “This is a game-changer even if it were competing on the same
playing field,” said Ed Feigenbaum, editor of the Indiana Gaming Insight
newsletter.
According to the
Indiana Gaming Commission, about 30 percent of gaming revenue from the four
casinos in northwest Indiana went to pay the wagering and admissions taxes
in fiscal 2014. Exactly how much money a South Bend casino would contribute
to Indiana governments would be determined through a compact between Indiana
and the tribe required by federal law.