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Deadline for Slots Legislation in Indiana is April 29th

With the April 29, 2007 deadline, legislators in Indiana are working hard to complete a compromise proposal on slots legislation for racing tracks. Some of the details of the proposal were revealed on April 27, 2007, stating that the Hoosier Park and Indiana Downs will have to pay a $250 million licensing fee for the 2,000 slot machines.

The $500 million fee will be used for property tax relief. Each division of the Indiana General Assembly approved both versions of the bill earlier this year and the proposal has since been discussed and reviewed by a conference committee. The House version of the bill states a $100 million licensing cost for the 2,500 slot machines.

The Senate Version of the proposal only allows for 1,500 machines and a licensing cost of around $400 million. Representatives of Centaur Inc., which operates the Hoosier Park, commented to the lawmakers that a $400 million licensing fee was not possible.

They also said that they could only afford around $125 million in licensing fees and would need around 2,000 slot machines to do so. The licensing fees would be a great help to the homeowners of Indiana, especially with an impending 24% tax increase.

The proposal also states a sliding tax scheme. Around 25% in total taxes for the first $100 million of adjusted receipts on the slot machines and around 30% for the next $100 million. Profits above $200 million annually would be imposed for a total tax of 35%.

Each racing track would also be required to spend $100 million on the areas that will feature the slot machines. While both the House and the Senate proposals would allocate around 15% of the revenues of the slot machines for purses and breeding programs for the state.


Wednesday, 09 May 2007
Darren G. Strachan