13 WTHR - Indianapolis News |Anderson horse track facing money woes

Anderson horse track facing money woes

Chris Proffitt/Eyewitness News

Anderson - One of Indiana's horse tracks and casinos is facing serious money problems and bankruptcy may become an option.

The economy helped keep Hoosier Park in Anderson from covering the cost of its new gaming license. With more than 3 million visitors in its first year of operation, Hoosier Park's new casino would seem an unquestionable success. Why then, is its owner, Indianapolis-based Centaur Gaming, suggesting that the property could be forced into bankruptcy after earning $217 million.

The answer, executives say, is in what amounts to a crushing tax burden and the largest fee for a gaming license of any state.

"If you look at 11 other casinos in the state, none of them paid license fees and they had a 20 percent tax. We paid a $250 million license fee and almost 50 percent taxes and fees," said general manager Jim Brown.

The economy has also taken a toll on gaming profits from Nevada to Indiana with consecutive months of declining revenues. That, coupled with the state's two "racinos" paying the highest tax and fee rate as a percentage of their revenue, has Hoosier Park lobbying legislators to renegotiate by asking for a roughly 19 percent tax reduction.

With 1,000 workers, Hoosier Park is Anderson's third-largest employer, paying the city $200,000 a month in taxes. Mayor Kris Ockomon says that has enabled the city to avoid laying off its own employees. Ockomon also says Hoosier Park's quarter-billion dollar licensing fee is an unfair burden.

"To put our gaming situation in jeopardy here town is going to be devastating for this community, if that happens," he said.

Lawmakers, now in special session, could allow new table games at Hoosier Park and Indiana Live Casino and offer tax relief injected into a bill designed to help Indianapolis' financially strapped Capital Improvement Board. Without help, Hoosier Park says of all the options available, bankruptcy remains on the menu.

Hoosier Park isn't alone when exploring bankruptcy. The Indiana Gaming Commission says that The Majestic Star, which runs a pair of Gary casinos, couldn't make two payments on loans and could be forced into bankruptcy.