Hard Rock Casino Northern Indiana owner backs food and beverage tax, House Speaker raises concerns

Spectacle Entertainment, the owner of the Hard Rock Casino Northern Indiana, is supportive of a bill that would impose a 1% food and beverage tax on the Gary casino, company officials said, but the Speaker of the House has questions.

In a statement to the Post-Tribune, Spectacle Entertainment Vice President of Operations and General Manager Jahnae Erpenbach said the company is “supportive” of the tax “and believe the additional source of revenue will aid the City of Gary in it’s much-needed revitalization endeavors.” “Additionally, we are invested in the well being of our guests and our team, and support the tax provision to provide public safety within the vicinity of the casino,” Erpenbach said in the statement.

According to an amendment to House Bill 1065, which is a large bill related to various tax matters, a 1% food and beverage tax would go into effect Jan. 1, 2021 at the Hard Rock Casino. However, House Speaker Brian Bosma, R-Indianapolis, said during a media briefing Thursday that state senators and representatives “don’t normally have a fit" about food and beverage taxes “if they are locally enacted.”

When reporters pointed out the food and beverage tax on the casino was not locally enacted, Bosma expressed concern. “We may have some problems then,” Bosma said. “We’ll have a conversation about it.”

The money received through the food and beverage tax “must be used by the city for purposes of public safety within a one mile radius” of the casino, which is referenced throughout the amended bill as “a riverboat,” according to the amendment.

The bill was passed by the House and the Senate Tax and Fiscal Policy Committee. On Thursday, it was scheduled to be heard in the Senate on second reading, which allows senators to propose amendments to the bill.

Sen. Travis Holdman, R-Markle, who sponsored the bill in the Senate, held it Thursday. Elizabeth Vos, a spokesperson for Holdman, said he held the bill because an insurance-related amendment “is being prepared for the bill.” Holdman will have an opportunity to present the bill Monday, Vos said.

Gary Mayor Jerome Prince’s administration has been considering a food and beverage tax for the entire City of Gary as an additional source of revenue. The amended bill accomplishes a portion of that by creating a food and beverage tax for the casino. Prince said the tax is something that was considered during the transition process and since his swearing-in, the city had the opportunity to get legislation seeking the tax introduced.

The administration worked with a lobbyist to ensure the legislation would make it before the right people and it has received outside support for the tax from entities including Spectacle Entertainment and U.S. Steel.

The tax initially proposed would have applied to all the food and beverages sold in the city including in places such as the new Hard Rock Casino Northern Indiana and the South Shore Rail Cats Stadium. But legislators have since amended the bill, narrowing its scope to include only food and beverages sold at the casino.

“It’s advancing pretty steadily,” Prince said. “I think when the public finds out it is going to generate a significant amount of revenue to allow us to continue to provide needed services, I think they will be pleased."