Indiana still banking gambling tax money

October 5

In Indiana, after two years of riverboat gambling, the state is still seeing a big boost in tax revenue from the ten riverboat casinos.

Many of the casino's managers say that because the boats no longer have to actually leave the docks in order for visitors to gamble, and the fact that they can do so 24 hours a day, have been the main reasons for the influx of revenue. It simply brings more customers out to play.

Records from the state of Indiana reflect that the casinos earned a record $2.3 billion in revenues during the 12 month period that ended in June 2004. This number shows a 7% increase over the year before. The casinos watched their revenues grow 12% in 2002-2003 as dockside gambling was allowed for about 11 months of that time frame.

It is reported that he casinos paid 45% more in taxes during the 2004 budget year, than they did during the time that the boats had to leave the docks.

That meant approximately $230 million in extra tax money went to the state and local governments. The casinos paid a reported $742 million in taxes last year, and this year the casinos might very well become one of the top three sources of tax revenue in that state.

Because the state charges the casinos more when they make more, it is harder for the casinos to increase their profit margins.

Now that the casinos are trying to desperately add to their profit margins, they have been forced to discontinue such deals as tour bus discounts, instead focusing on the type of player that might bring a larger bank rolls.

But, the casino managers agree that they do not want to return to the old ways either.