Daniels says no but gambling issues persist

From Indiana -- the ongoing saga of the Arms Race and Centaur --

When Gov. Mitch Daniels weighed in last week on a debate about how or whether to help Indiana casinos deal with competition coming from newly approved casinos in Ohio, he did so definitely.

No tax breaks for the gambling industry. No way. No how.

“If they’re asking for tax relief, if they’re asking for cash – no,” Daniels said. “If we’re going to start bailing out industries in this state, we’re not going to start with a very profitable one like that.”

It was an interesting declaration from a governor whose administration has for the most part looked kindly on the industry.

Daniels signed into law a property tax deal that authorized the state’s two horse track casinos.

The Indiana Gaming Commission has given casinos more latitude in their construction standards, so the most recent projects have been bigger and fancier than ever before.

But the Republican governor seems to have soured a bit on the industry.

Those horse track casinos — particularly Hoosier Park in Anderson — have been vocal in their criticism of the $250 million licensing fee that Daniels pushed for.

And the racinos were seeking tax breaks even before the latest out-of-state threat came from Ohio.

It seems Daniels hasn’t liked the attitude.

In fact, just last week, he instructed Ernie Yelton, the gaming commission’s executive director, to send reporters that cover gambling a newspaper story describing another state’s efforts to impose $200 million licensing fees.

“A deal is a deal,” the governor appears to be saying to the racinos. “And the deal was fair.”

But the two racinos and the state’s other 11 casinos — most of them located on water — do seem to have the ear of some legislators.

Already, a committee has been studying what — if anything — the state should do to adjust for competition. Tax breaks to encourage more player promotions and new capital investment were among the ideas considered.

That group has not yet made any recommendations, but there is sure to be legislation promoting some of those ideas when the General Assembly convenes in January.

And while Daniels is putting the kibosh on any tax breaks, he said he might be open to other things that could help the gambling industry — like eliminating the requirements that riverboat casinos have the ability to cruise and keep crews on staff.

He said he might even be open to letting them rebuild on land or letting the two boats in Gary relocate.

But such changes would help only some of the state casinos and lawmakers have found that it’s tough to pass gambling legislation unless there’s a little something for all the venues.

That’s probably why gambling will almost inevitably be a controversial issue come January — just like it is in almost every legislative session.