Court lets casino tax ruling stand

October 4

Under a ruling from the state Supreme Court this week, Indiana's riverboat casinos will have pay an approximation of $200 million in back taxes. Collectively, the ruling also could cost the ten casinos up to $50 million more a year in corporate income taxes.

In April, the Indiana Tax Court ruled in that that company running Evansville's riverboat, Aztar Corp., was not allowed to deduct wagering taxes from its state income tax bill.

All the other gaming companies in the state have asserted the same deduction.

The casinos appealed the April decision. This week the state's high court rejected to hear the case. Casino attorneys are seeking other routes in order to fight the ruling, despite the fact that was their last real chance.

The Indiana Department of Revenues' deputy commissioner states that the department is examining the casinos' past tax information regarding how much each company owes. At that point, each casino will be charged back taxes plus possible penalties and interest.

It is noted that these penalties are coming at at time when the state is desperate to pay-off its $800 million deficit.