Wednesday, March 31, 1999
Argosy underpaid taxes
Casino didn't count all its passengers
BY RACHEL MELCER
The Cincinnati Enquirer
LAWRENCEBURG, Ind. — At Argosy Casino and Hotel, where the turnstile count adds up to boasting rights for America's most popular gambling riverboat, officials are in trouble for not counting carefully enough.
The Indiana Gaming Commission (IGC) will penalize the Lawrenceburg casino for underestimating its total number of passengers on several cruises last summer and fall. As a result, Argosy paid less than it should have in admission tax dollars to the state and local jurisdictions.
The IGC has never before fined one of the state's nine casinos for this type of violation. The commission is expected to settle on a dollar amount, as well as possible corrective actions, in the next few weeks, an IGC official said Tuesday.
During a random, 12-day spot-check last summer, IGC inspectors found that Argosy failed to pay an average of $291 a day in admission taxes. Assuming that the problem began when the riverboat moved to its current dock in December 1997, the IGC assessed it $63,729 in back taxes.
The amount is small when compared with the $1.5 million to $2 million in admission taxes Argosy paid monthly in 1998. Argosy has tallied more admissions at its Lawrenceburg complex since May 1998 — 5.8 million — than any other riverboat casino in the country.
The commission decided not to levy a fine until inspectors found the same problem at Argosy during a recheck in September.
“The fact that the problem continued, after it was brought to their attention and they had been assessed, led the commission to take it more seriously than they had,” said Jennifer Byrd, IGC director of external affairs.
Argosy recently installed an automatic turnstile system designed to correct the problem — a move approved by the IGC.
“We acknowledge the complaint and accept the fine levied,” said Argosy General Manager Arnold Block in a written statement.
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