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ANGOLA — A number of Steuben County officials will be making a presentation Monday to a legislative study committee studying a potential move of a Gary casino license to northeast Indiana.
Steuben County Commissioner Mayo Sanders, county Councilman Paul Sparks, Angola Mayor Richard Hickman, Fremont Town Council President Loretta Smart, Orland town Councilman Gene German and Steuben County Economic Development Corporation executive director Gary Nielander will be at the meeting to show support for a referendum in Steuben County. Fort Wayne Mayor Tom Henry is also likely to be at the meeting to make a case for his city.
In addition to moving one of the two Gary licenses to northeast Indiana, the committee is also looking at potentially authorizing land-based casinos. That would allow casino owner Don Barden to move the remaining Gary casino to a different location within the city. Barden own the Majestic Star I and II riverboats in Gary.
A referendum of the voters in the community where a casino has been proposed has to first pass before the Legislature would allow a license to be moved and a casino be built. The SCEDC has hired a firm to lobby the Legislature next spring to approve a measure allowing a referendum in Steuben County.
While this week saw the Steuben County Council authorize $15,000 for the lobbying effort for the referendum and the Angola Common Council determine the funding source for its own $10,000 share of the lobby effort, a major issue has not been settled if the referendum passes and a casino is sited here.
State law provides for specific distribution of the two taxes levied on casinos. The wagering tax, which is taken off the top of casino revenues, is distributed on a 75 percent-25 percent scale, with the state receiving the larger share and the host city receiving the 25 percent. The state’s funds are then distributed throughout the rest of the state via revenue sharing. Casino owners also pay an admissions tax, which is a $3 tax levied on an owner for each person who enters the casino. The prescribed distribution sends $1 each to the state, host city and host county.
What’s at issue in Steuben County is what entity would qualify as the host city. The preferred proposed site, west of The Outlet Shoppes at Fremont and near the intersection of I-69 and the Indiana Toll Road, lies in an unincorporated part of the county. Conceivably, the host city could be Fremont, which is the closest municipality and could potentially offer emergency services. In Harrison County, the county is considered the host city due to the casino being the home dock of the riverboat there, which is not in a municipality.
The distribution in Steuben County has yet to be discussed, officials said.
“It’ll be the elected officials who decide that,” Nielander said.
Hickman aid he knew the issue needed to be talked about, but said it had yet to be discussed in detail.
“None of us have sat down and talked about that yet,” Hickman said.
At a Fremont Town council meeting last month, Smart seemed to indicate that she wanted Fremont to receive additional funds, especially since it would likely be Fremont police and fire departments that would likely respond first in an emergency situation.
Mike Smith, executive director of the Indiana Casino Association, said the distribution formulas have changed since the original 10 casino licenses were granted. Each bill authorizing a license move or a new operations, such as the casino-race track at Anderson, has gone by a different distribution formula.
“When they moved the license to French Lick, it had it’s own system,” Smith said. “It really doesn’t follow the rest of the cities.”
The legislation authorizing the referendum, or a final casino bill, could authorize a distribution mechanism unique to Steuben County, he said.
“My guess is that it would be unique to their situation,” Smith said.
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