INDIANAPOLIS (AP) -
Sports betting will become legal in Indiana and construction of two new
casinos will be allowed in the state under a bill signed by the governor on
Wednesday.
Republican Gov.
Eric Holcomb endorsed the bill on his final day to act on the measure
approved by lawmakers after they reached a deal in the final hours of this
year’s state legislative session.
So far this year,
Indiana joins Montana and Tennessee in moving to legalize sports wagering
after six other states moved quickly following a U.S. Supreme Court decision
allowing it nationwide last year. An Iowa sports betting bill is awaiting a
decision by that state’s governor and several other states are considering
legalization measures.
Indiana sports
wagering could start in September. Bets could be placed by anyone 21 or
older at a casino or by mobile devices after a bettor has registered with an
Indiana casino.
Holcomb said
Indiana’s casino industry faced greater competition as neighboring states
have legalized more forms of gambling.
“By modernizing our
laws, this legislation will spur positive economic growth for our state and
for an industry that employs over 11,000 Hoosiers,” Holcomb said in a
statement. “Additionally, it will bring in new revenue and create hundreds
of new jobs - both permanent and in construction.”
The Indiana House
had voted to permit sports betting only at casino sites as some members
argued it would easily allow illegal wagering by minors and set the state up
to future attempts for letting traditional casino games like blackjack move
online. But Senate sponsors pushed to allow sports wagering through
smartphones, arguing that doing otherwise would be an unreasonable limit.
The
Indianapolis-based NCAA last week rescinded its policy prohibiting
championship events from being held in states that have legalized sports
gambling. The ban that previously kept events such as the men’s basketball
tournament out of Nevada became impractical as legal sports gambling spread
to more states.
Indiana’s law will
allow wagering on collegiate sports, but not on high school or youth
sporting events.
The proposal sets a
9.5% tax on sports wagering, but no windfall is expected for the state. A
legislative analysis estimates the proposal will bring in about $12 million
a year - less than one-tenth of 1% of expected state tax collections.
Another section of
the bill allows the two horse track casinos near Indianapolis to have table
games such as blackjack with live dealers starting Jan. 1, 2020 - 18 months
earlier than allowed under current law.
It also allows the
owner of the two Gary casino boats on Lake Michigan to move to a new casino
along heavily traveled Interstate 80-94 in the city and sets up the process
for opening a casino in the western Indiana city of Terre Haute. Indiana has
11 other existing casinos.
The law requires
Spectacle Entertainment, which is buying the two Majestic Star Casino boats
in Gary, to spend at least $150 million on a new Gary casino and pay a $20
million state fee for the move. The company has proposed a $300 million
project building a new casino and 200-room hotel for Gary.
Some legislators
criticized the final package as overly generous for lowering a previous
version’s requirement of a $100 million fee from Spectacle to build the new
Gary casino to $20 million and allowing perhaps $40 million in tax breaks
over five years.
Spectacle has
sought to transfer a Gary casino license to Terre Haute, but the bill’s
final version allows any Indiana casino operator to submit a bid to the
state gaming commission for the license. Under the law, voters in Vigo
County would first have to approve a referendum in the coming year allowing
the casino in Terre Haute, and the operator would have to spend a minimum of
$100 million on the new facility.
The Indianapolis
Star reported in March that Spectacle’s CEO treated Republican Gov. Eric
Holcomb to private jet flights last year as they traveled together for
meetings in Colorado and Arizona. The newspaper also found that one of the
company’s investors helped arrange a Vigo County government contract for GOP
House Speaker Brian Bosma’s Indianapolis law firm.
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