(Indianapolis, Ind.) - Indiana’s casino revenue – the state’s fifth largest source of tax revenue – declined significantly in May.
Lawmakers passed a law earlier this year that allows casinos to deduct taxes from up to $5 million in free-play vouchers they offer to lure visitors starting July 1. The law allows casinos to take a deduction on up to $2.5 million in vouchers for May and June of this year.
A report released Monday shows total tax receipts from casinos fell by $14 million, or almost 18 percent, compared to May of last year, the Indianapolis Star reports.
The free-play deductions accounted for $7.5 million of the decline.
Also contributing to the lower tax take was a drop in overall revenues at Indiana’s 13 casinos, which fell 5.8 percent last month. Much of that decline was seen in southeast Indiana, where reported revenues at Hollywood Casino in Lawrenceburg and Rising Star Casino in Rising Sun fell by more than a third from May 2012.
The local decline has been largely contributed to the March opening of the Horseshoe Casino in Cincinnati.