Thursday, October 07, 1999
Casinos consider staying docked
Illinois boats drop cruises
BY RACHEL MELCER
The Cincinnati Enquirer
Indiana's riverboat gaming industry, already the most successful in the nation, may be on the verge of changing to keep pace with the neighbors.
Illinois riverboat casinos in June began operating while permanently docked, eliminating cruising schedules that can be inconvenient for patrons. And Kentucky legislators are considering ushering in a dozen or more land-based casinos to compete with Indiana and other gambling-rich states.
So Indiana is beginning a new round of casino tit for tat.
Legislators are talking about approving dockside gambling for the state's 10 licensed casinos: five that cruise on Lake Michigan in the greater Chicago market, and four that run or are under construction on the Ohio River, including Argosy in Lawrenceburg and Grand Victoria in Rising Sun.
Casino companies, their advocates and adversaries testified Tuesday for a legislative committee that will report at the end of October on the financial value of Indiana's gambling industry — and the competitive threat posed by neighboring states.
Together with a two-year statewide report on the overall economic and social impacts of gambling on Indiana that is due in December, the document will provide legislators with the information they need to propose and vote on laws in their January session.
“We've essentially collected a library of information,” said Republican state Sen. Becky Skillman, chair of the economic development committee.
“There's fodder for both sides, those who would support dockside gaming within our state and those who would oppose any expansion of legalized gambling.”
The Casino Association of Indiana, which represents riverboat operators, is leading the push for dockside gambling. But opponents say the added convenience would lead to an increase in gambling opportunities, addiction and other social ills.
Without dockside gambling and other competitive changes, the millions of dollars in tax revenue paid by the state's casinos will drop by about 23 percent annually by 2005, according to a study commissioned by the association. And, the report says, potential casino employment will drop by 31 percent or about 9,500 jobs.
“Our desire is to figure out what we need to do to level the playing field” and keep potential revenue and job creation on track, said Jennifer Simmons, executive director.
In the four years since Indiana legalized riverboat casinos, they have paid more than $1 billion in gaming and admissions taxes to state and local governments. It is the fifth-largest source of tax revenue in the state.
In southern Indiana, without dockside gaming, casinos could lose about 10 percent of their gross revenues and employment by 2005, according to the study. That is especially true if Kentucky approves more convenient land-based casinos.
“The biggest complaint that we get from customers is the inflexibility of boarding. If they hit traffic, if they get held up and they miss that 30-minute window, they have to wait for an hour and a half” for the next cruise to begin, said John Spina, Grand Victoria general manager.
“They don't understand it. Especially if we aren't cruising because of bad weather or whatever reason. The boat is sitting there, and they can't get on it.”
Gary Johnson, director of sales and marketing at Argosy, the nation's most successful riverboat casino, says his company also needs to provide what customers want in order to maintain its leading market position.
But convenience is a problem not a benefit, according to gambling opponents. It would draw in more local gamblers, who might otherwise spend their money on nearby goods and services and benefit different economic sectors. And it would increase addiction and other costly social ills.
“Those prone to gambling would go there more often. A guy could go down (to the casino) after work every day. He wouldn't have to be concerned about being stuck on the boat or about what time it is when he goes,” said Walter Schultz, legal chairman of Southern Indiana Citizens Against Gambling.
“If they want to consider bordering states, that's great. Let's look at what Ohio and Kentucky have done (so far) and have zero gambling.”
Jack Thar, executive director of the Indiana Gaming Commission which regulates the casinos, said so far he sees no evidence that Indiana is losing ground. But Illinois casinos recorded about a 35 percent increase in business in the first two months they stayed docked.
“Actions in one place can have a drastic reaction in another states,” Mr. Thar said. “Two months may be too short to determine whether dockside gaming is necessary for our industry.”
But Grand Victoria's Mr. Spina said he sees the writing on the wall.
“The customers are very clear in what they want. They are voting right now in Illinois by going to those boats with higher frequency than they are in Indiana,” he said.
“If you give them a better product, they will come. ... It's called competition. It's the American way.”
Council approves property tax plan
Washerwoman can lead Tide of goodness
Casinos consider staying docked
Drivers run red, but not in rage
Sauerkraut to honey, we love festivals
Waging war on teen drinking
Norwood mayor's office investigated
Driver faces eight years for hitting teen on bike
Police seek deli shooter
Trucker freed after bail lowered in fatal wreck
Classes to take away fear of computers
Goose dresser explains his passion
Ind. science teacher wins national award
Pets special on this day
Riverboat no longer tipsy
School candidates tell why they run
Where school board candidates stand
ABC's 'Wasteland' will make you scream
GET TO IT
Service honors fallen firefighters
Maisonette munchers rave on
Artists protest plan that displaces shelter
Boone planners may drop growth restriction
County chooses Ohio's program to help jobless
Disciplined janitors sue school board -6 over camera
Elsmere fumes at jail-site choice
Fingerprints at '85 death scene called link to man
School chiefs want funding addressed
Students inspire Up With People
Taft has caution on using windfall
TRISTATE DIGEST
United Way campaign nearly halfway to goal
Work on new school district begins
