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Economist: 3 Reasons Why Poker Casinos are Benefit

9/1/2003

One of the state's leading economists notes that the poker casinos which are uniquely located near recreational hot spots, the Lighthouse Premium Place Outlet Mall and Lake Michigan, appeal to out-of-towners.

Other riverboat locations in northwest Indiana provide only the poker casino aspect, but visitors to this poker casino can travel less than a mile to Lake Michigan to swim or to the mall to shop.

Those traveling from Michigan and Illinois have made Indiana riverboats 殿 true export industry,� said Carl Braunlich, Purdue University associate professor of hospitality and tourism management. Here are casino's benefits, according to the economists:

1. Huge revenues have been generated through the wagering and admission taxes, particularly for the state. In the 2001-02 fiscal year, the 10 Hoosier riverboats dumped $322 million into state coffers - only individual income, motor fuel and corporate income taxes contributed more.

2. Jobs, jobs and more jobs are a major benefit readily cited by economists. The casino employs around 1,200 people, and the 10 boats combined have 16,500 employees, totaling $478 million in wages. Only Wal-Mart and McDonald's employ more Hoosiers than the 10 riverboats, according to Mike Smith, executive director of the Casino Association of Indiana. Riverboats then help provide business for local vendors, more than 4,000 statewide, including food service, contractors and janitorial services, in turn spurring job growth in these industries. Additionally, riverboats with hotels -turn one-day trips into overnight stays, leading tourists to shops, restaurants and other recreation venues outside the casino. The thousands of dollars every year in tips collected by poker slot representatives, servers and poker dealers stay right in the community.

3. IIncluded in any list of how a riverboat affects the local economy has to be how Michigan City, LaPorte County and every community and taxing district in the county receives parts of the money. Rather than paying for infrastructure projects through bonds or not completing them at all, those communities and taxing districts can use gambling revenue to pay for an entire project or to supplement it. All those factors lead economists to conclude the riverboat is a major stimulus in the state and local economy.

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