Casinos' impact on Indiana, Fort Wayne

FORT WAYNE, Ind./OH (WANE/AP) - With 99% of precincts reporting unofficial results, a referendum to legalize casinos in Ohio passed with 53% of the vote Tuesday.

The amendment paves the way for casino plans in Columbus, Cleveland, Cincinnati and Toledo.

An economic impact study predicted nearly 40,000 temporary and permanent jobs and $4 billion in economic impact.

While jobs and extra revenue will be added in Ohio, it will come at a cost to the Hoosier state.

"There were a lot of people -- at least lawmakers in the state of Indiana -- watching the results in Ohio," said Rep. Randy Borror.

That's because the casinos opening in Ohio will deal a blow to future state budgets in Indiana. State lawmakers wrangled with passing one this year, just narrowly escaping a statewide government shutdown, and they relied partly on gambling dollars to put that budget together. Money could be even tighter in future years.

Four casinos opening in the Buckeye state means some people who have been coming to Indiana to gamble will likely stay in Ohio, and some Hoosiers may gamble there as well.

"I would expect at least a $100 million reduction in the revenue available for our state budget," said Rep. Win Moses.

"That's of grave concern to the entire state budget since we're dealing with very slim revenues," said Rep. Borror.

Lawmakers agree that while Indiana made a flush of money in the past from gambling, the glory days are now coming to an end.

"We originally had nine boats and then we added French Lick and then a few years ago we added the two racinos and like I said there's only so much money you can saturate in this particular thing regardless of what the economy is," said Senator Tom Wyss.

"This is only the beginning. Ohio has approved it and I fully expect Illinois to put one in Chicago and I wouldn't be surprised if Kentucky doesn't put some more up along the Ohio River. The peak days of casino revenue are probably over," said Rep. Moses.

It'll still be a few years before those Ohio casinos open for business. Area lawmakers I talked to say making up that money will be a big issue in the upcoming legislative session.

Fort Wayne leaders have also been fighting for a casino license. Toledo is some two hours from Fort Wayne, but Indiana lawmakers already are warning that a casino there will deal a blow to Indiana, and the Summit City.

Mayor Tom Henry has been pushing for a casino license in Fort Wayne. His office says that could generate a $500 million investment, create quote "hundreds of jobs" and generate $15 to $20 million dollars a year in revenue.

While that's still just a talking point among city and state leaders, if a Fort Wayne casino opens, it would likely be negatively impacted by a casino in Ohio or one of the other three cites in Ohio. Still, Fort Wayne is pushing on to get its slice of the pie.

“We watched the results of that election and obviously the Mayor was happy that the citizens of Ohio got their chance to vote in a referendum and he's still pushing to get that here. With Ohio getting casinos means for our chances, I couldn’t speculate that,” said Ozzie Mitson, Legislative and Business Liaison for the City of Fort Wayne.

“Competition is going to dramatically increase. It makes it much more difficult for those who want to bring a casino to Fort Wayne also,” said Rep. Moses.

“I think what you'll find is an even more so decline of available dollars that will be spent here in the Fort Wayne area,” said Senator Wyss.

Steuben County, Indiana leaders are pushing their own casino referendum. Leaders met with a gaming study committee in Indianapolis late October. They want to expand on current lake tourism.

If slot machines pop up across the border, Angola Mayor Richard Hickman says a possible casino in Steuben County would still be successful. But, he adds, there is still a long fight ahead before the area gets one.

"We still have a lot of a lot of things to overcome," said Hickman. "Number one, the legislature has to approve a casino moving. Number two, (the legislature has to) approve Steuben County having a referendum, and that referendum passing. So there's a lot of hurdles yet for this community to overcome to get a casino here."

The gaming committee is working on a report in which it will lay out its recommendations on gaming in Indiana. That report will be turned over to the state legislature when it's back in session in January.