Indiana Gaming Regulators Under Fire From State Lawmakers

Article by : Erik Gibbs Dec 26, 2023

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During a state budget committee hearing on Tuesday, Indiana legislators censured state gaming regulators for their approach to imposing fines and regulatory penalties.

State Senator Chris Garten (R-Charlestown) scrutinized members of the Indiana Gaming Commission (IGC) and issued a warning, suggesting that if the regulatory body doesn’t promptly adjust its methods for evaluating regulatory violations, he would advocate for changes.

Garten emphasized that the profitability of casinos in Indiana doesn’t grant the commission the authority to excessively penalize businesses for certain legal faults.

Garten confirmed his apprehension, emphasizing that the notion seems to be that the profitability of Indiana’s casinos justifies imposing higher fines. In the preceding seven years, the IGC has levied fines exceeding $4.5 million on Indiana’s 12 commercial casinos. These include riverboat and land-based establishments.

It’s worth noting that Indiana is also home to a solitary Tribal casino, which falls outside the legal authority of the IGC regulation. As per the state’s casino legislation, the IGC is empowered to impose penalties on its licensed gaming operators for breaches of statutory conditions.

Senators, such as Garten and Ryan Mishler (R-Mishawaka), contend that the fines imposed in recent years have not reflected a reasonable application of the law.

Greg Small, the Executive Director of the IGC, stood by his agency, asserting that the monetary penalties serve as a means to foster compliance among the casinos. The Executive Director clarified that the commission maintains the stance that its fines haven’t hindered hiring or led to any casino reporting less profits.

Fines imposed by the IGC cover a variety of infractions, ranging from a casino’s failure to identify underage users and or running compliance checks to verify that players are not subject to legal responsibilities such as child support and others.

As the Chair of the Joint Rules Committee, Garten publicly read complaints from casinos regarding the IGC’s penalty evaluations.

The IGC has also faced an increased workload over the past years. In addition to supervising the introduction of sports betting in 2019, it has also supervised the introduction of three casinos.

Indiana’s gaming controversies expand beyond the IGC. In a bribery scandal involving Spectacle Entertainment, John Keeler, a former legislator and co-founder of Spectacle, pleaded guilty to bribing Sen. Brent Waltz and Rep. Sean Eberhart with campaign funds for favorable treatment.

The IGC collaborated with the US Department of Justice in the investigation. The scandal led Indiana legislators to refrain from voting on gaming bills in the 2024 session.