GAMING ACTIVITIES. History of Gaming Lotteries Horse Racing Casinos.

GAMING ACTIVITIES

History of Gaming

• Lotteries

• Horse Racing

• Casinos

LOTTERIES

History of Lotteries

• In 100 B.C., the Hun Dynasty in China used lotteries (and created Keno) to help raise funds for defense – primarily to finance construction of the Great Wall of China.

• Lotteries also date back to the time of Ceasar, before Christ; and, there are references to lotteries in the Bible.

• In 1515, lotteries were used in Genoa and Florence, Italy. The word “lottery” is thought to originate from the Italian word “lotto”, which means fate or destiny.

• From 100 B.C. through the 17th Century, many countries used lotteries to: (i) fund armies; (ii) finance public works projects such as ports, canals, bridges and buildings; and (iii) replenish royal treasuries.

History of Lotteries

• European royalty recognized the fundraising potential of lotteries in the early 1500’s. In 1520, King Francis I of France held the first ever state lottery and directed the proceeds to go to the Royal Court.

• England caught lottery fever about 40 years later, when Queen Elizabeth I established the first English state lottery in 1567. She used the money to improve England’s ailing harbors.

• In 1612, King James I of England, by royal decree, created a lottery in London. The proceeds were used to help the first British colony in America – in Jamestown, Virginia. Reports indicate that 2 of the 3 winning tickets for the first draw were held by Anglican churches.

History of Lotteries in the United States

• Many of our Founding Fathers played and sponsored lotteries. For example, Benjamin Franklin used lotteries to help finance cannons for the Revolutionary War. George Washington used lotteries to help finance construction of strategically important roads.

• Lotteries were particularly popular in the New World in the 18th Century. They served an important function in the early development of the country through the Civil War.

• Lotteries were most active during the period following the adoption of the U.S. Constitution in the 1700’s and before the establishment of an effective means of local taxation in the early 20th Century.


• After the Revolutionary War, lotteries served as established sources of public and private financing in the early years of the United States.

• From 1790 to the Civil War, numerous projects were funded with lottery revenues, including hospitals, orphanages, jails, libraries, courthouses, churches and colleges. Over 50 colleges were started with assistance from lottery proceeds, including the Ivy League schools of Harvard, Yale, Princeton and Columbia.

• After the Civil War, the southern states relied on lotteries to help finance Reconstruction.


• However, between 1820 and 1878, corruption in privately operated lotteries became rampant.

• An example was the Louisiana lottery. It was very popular in the country – more than 90% of its revenues were from out of state. It was also extremely profitable, returning a 48% profit to its private operators. However, the public eventually learned that it was operated by a northern crime syndicate that regularly bribed legislators and committed widespread fraud and deception in its operations.

• Public opinion turned against lotteries, and governments were unable to properly and effectively regulate them. By the end of the 19th Century, all states had outlawed lotteries.


• In 1890-1895, the U.S. Congress banned all lottery materials from the mail and interstate commerce.

• A few years later, in 1905, the U.S. Supreme Court reaffirmed the authority of states to control gambling within their borders.

• In 1964, New Hampshire created a state lottery, which was the first legal lottery to operate within the United States in the 20th Century. Other states soon followed, including New York and New Jersey. Indiana followed in 1989.

• By the end of the 20th Century, 37 states and the District of Columbia operated lotteries in the United States. More than 100 foreign lotteries exist; some have operated for centuries.

History of the Lottery in Indiana

• In the 1980’s, Lottery forces were growing in Indiana and urging the adoption of a state lottery to help finance the public budget.

• On November 8, 1988, Indiana voters approved a lottery referendum by a strong majority – 62 percent.

• On May 3, 1989, the Indiana General Assembly passed the Lottery Act, and, one week later, Governor Evan Bayh signed it into law.

• The Hoosier Lottery was in full operation by 12:10 p.m. on Friday, October 13, 1989, when ticket sales commenced. The first week’s sales exceeded $21.8 million.

History of the Lottery in Indiana

• Sixty cents ($0.60) out of every dollar ($1.00) that the Lottery receives goes back to the players in the form of prizes.

• Since its inception in 1989, the Hoosier Lottery has returned more than $3.3 billion to the State of Indiana.

• Lottery revenues go towards the Build Indiana Fund, the Teachers’ Retirement Fund, and the Police and Fire Pension Relief Fund.

HORSE RACING

History of Horse Racing

• Horse racing is one of the world’s oldest sports. Its origins are believed to go as far back as the nomadic tribesmen of Central Asia who first domesticated the horse around 4,500 B.C.

• The popularity of horse racing stretched from Central Asia to the Mediterranean.

• By 638 B.C., both chariot and mounted horse racing were events in the ancient Greek Olympics, and the sport became a public obsession in the Roman Empire.

• For thousands of years, competitive horse racing flourished as the sport of kings and nobility.


• The origins of modern horse racing lie in the 12th Century, when English knights returned from the Crusades with swift Arab horses.

• Over the next 400 years, an increasing number of Arab stallions were imported and bred to English mares to produce horses that combined speed and endurance.

• Horse racing began to become a professional sport during the reign of Queen Anne of England (1702-1714). Horse tracks sprung-up all over England, offering increasingly large purses to attract the best horses.


• With the rapid expansion of the sport came the need for a central governing authority. In 1750, the English racing elite created the Jockey Club, which to this day exercises control over English horse racing.

• The Jockey Club wrote complete rules of horse racing and also sanctioned horse tracks to conduct races under those rules.

• The Jockey Club also took steps to regulate horse breeding, including the tracing of the pedigree (or family history) of every horse racing in England. The results were published in the “General Stud Book”, which is maintained to this day.


• Interestingly, this book shows that the Thoroughbreds are so inbred that the pedigree of every single horse can be traced back to one of 3 stallions, called the “foundation sires”, which were Byerley Turk (foaled c.1679), Darley Arabian (foaled c.1700), and the Godolphin Arabian (foaled c.1724).

• In the United States, the founding sire of all Standardbreds (horses bred for racing under harness) is an English Thoroughbred named Messenger. Messenger was brought to the U.S. in 1788, and was bred to pure Thoroughbred as well as mixed-breed mares. His descendants were rebred until these matings produced a new breed that had the endurance, temperament, and anatomy suitable for harness racing.

History of Horse Racing in the United States

• British settlers brought horse racing with them to the New World. The first horse track was established on Long Island in 1665.

• In 1730, the first true Thoroughbred was brought to the United States. His name was Bulle Rock.

• However, horse racing was delayed in the 1700’s due to the British Stamp Act. In protest, no more Thoroughbreds were imported from England.

• Founding Father George Washington was involved in horse racing. He managed a horse track in Alexandria, Virginia, and he trained horses at Mount Vernon both before and after the Revolutionary War.


• In the 1840’s, horse racing began to spread westward across the United States as more Americans migrated into the interior of the country.

• Horse racing grew significantly after the Civil War. The first Kentucky Derby occurred in 1875. By 1890, there were about 320 horse tracks operating in the United States.

• Fraud and criminal activity became rampant in the sport in the late 1800’s. In response, track and stable owners met in New York in 1894 and created the American Jockey Club (which was modeled on the English version). This new authority soon ruled horse racing and eliminated much of the corruption.


• However, in the early 1900’s, anti-gambling sentiment almost wiped out horse racing. By 1908, the number of horse tracks in the country dropped to just 25.

• By the end of World War I, economic prosperity and great horses like Man o’ War brought spectators flocking back to the horse tracks.

• The sport prospered until World War II, declined in the 1950’s and 1960’s, and then enjoyed a resurgence in the 1970’s which was triggered by the popularity of great horses such as Secretariat, Seattle Slew, and Affirmed, each winners of the American Triple Crown.


• Today, horse racing is one of the most widely attended spectator sports in the U.S. Each year, more than 65 million people attend horse races and wager more than $12 billion.

• Horse racing is also a major professional sport in Canada, Great Britain, Ireland, Western Europe, South Africa, South America, Australia, and New Zealand.

• By far the most popular form of the sport is the racing of mounted Thoroughbred horses over flat courses at distances from three-quarters of a mile to two miles.

History of Horse Racing in Indiana

• On September 1, 1994, Indiana opened its first horse track in Anderson, Indiana, commonly known as “Hoosier Park”. It was managed by Churchill Downs.

• The first pari-mutuel race was won by B K Bentley, owned by Penny & Ron Krodel and Nancy & Henry Blackwell II.

• Opening night crowd of 7,633 people who wager $406,485.

• For the first year, the money wagered was distributed as follows: (i) track share – 11.2%; (ii) purses – 6.7%; (iii) pari-mutuel tax & breakage – 2.7%; and (iv) bettors – 79.4%.

• In 1995, the effort to open a second horse track in Shelbyville failed after several unsuccessful attempts to secure financing.


• On May 30, 2001, the Horse Racing Commission approved a second horse track for Shelbyville, Indiana, commonly known as “Indiana Downs”. It opened in December, 2002.

• The annual amount wagered at Indiana horse tracks has grown from $20 million in 1994 up to $190 million in 2005-2006.

• In 2007, the Indiana General Assembly passed legislation allowing the two Indiana horse tracks to operate slot machine facilities commonly referred to as “racinos”. Each facility is required to pay a fee of $250 million to the state and spend a minimum of $100 on initial capital improvements. The law also limits the number of machines to 2,000 in each racino.


• The racino at Hoosier Park will be 90,000 square feet and will open on June 1, 2008.

• Indiana Downs will open its temporary facility in mid- June, with its 235,000 square foot permanent facility open by early 2009.

2007-2008 Capital Expenditures

• Hoosier Park in Anderson is investing $100+ million in its new “racino” slot machine facility and ancillary facilities.

• Indiana Downs in Shelbyville is investing $170+ million in its new “racino” slot machine facility and ancillary facilities.

Other Gaming Taxes

TAX TYPE DISTRIBUTION TOTAL DISTRIBUTION

RIVERBOAT ADMISSIONS TAX

$3 per patron ($4 for Orange County Casino) collected and remitted by the licensee. The revenue is distributed to local and state units.

$ 1011.5 Mil

PARI-MUTUEL ADMISSIONS TAX

$0.20 per person on paid admission to a horse track or satellite facility. 50% to General Fund and 50% in equal share to city and county in which the

facility is located.$0.3 Mil

PARIMUTUEL SATELLITE FACILITY TAX

0.5% of total wager made in a satellite facility. 50% to livestock industry promotion and development fund, and 50% to

state fair commission.$ 6.8 Mil

CASINOS

History of Casinos

• The earliest record of gambling was written by the Chinese in 2,300 B.C.

• Gambling was part of the Grecian and Roman Empires as well as Napoleon’s France and Elizabethan England.

• At the height of the Roman Empire, a law was passed which required all children to learn the art of throwing dice. There are reports that one Roman Emperor even had his carriage designed so it could accommodate his gambling sessions while traveling on official business.

• Playing cards were invented by the French in 1387, but the first full deck of cards was printed by a German named Johann Gutenberg in 1440.

History of Casinos

• The Egyptians invented the game Roulette, which the French bourgeoisie played with great skill in the 16th Century.

• Napoleon was reportedly an adroit player of the card game Vingt-et-Un, which is known today as Blackjack.

• The game of Craps appears to have originated in England.

• Persia, Italy and England are generally credited with the development of the modern Poker games. The French added to the betting techniques of Poker, while the English created the idea of bluffing.

• In 1858, the Grimaldis allowed gambling in their principality, Monaco, to keep from going bankrupt, creating Monte Carlo.

History of Casinos in the United States

• Casino gambling started slowly. Taverns and roadhouses began to allow dice and card games.

• By the early 1800’s, gambling was spread across the country by Mississippi riverboats. Soon thereafter, casinos were established on the banks of the Mississippi River near the City of New Orleans.

• The gold rush brought gambling to California. In 1850, San Francisco replaced New Orleans as the center for gambling.

• Public opinion turned against gambling; new laws were enacted; and professional gamblers were lynched in 1856.


• The slot machine was an American invention. The inventor was Charles Frey, and he introduced it to gamblers in San Francisco in 1895. The slot machine was outlawed in 1911.

• By 1910, virtually all forms of gambling were outlawed in the country (except horse racing in a few states). Feelings against gambling were so strong that Arizona and New Mexico were forced to outlaw casinos to gain statehood.

• The Great Depression changed the perception of gambling. Many people began to view gambling as a way to stimulate the economy; and greater legalization of gambling resulted.


• In the 1940’s, Benjamin Bugsy Siegal started casino gambling in Las Vegas. This was known as the “Bugsy” era. In reality, a group of men were responsible for the growth of gambling in Las Vegas. They were Benny Binion, Bob Stupak, and Steve Wyn.

• Many casinos in Nevada were financed by organized crime. Most notable was the Flamingo, which was opened in 1947 by Bugsy Siegal.

• During the 1950’s, the U.S. Senate investigated mob activity in the gambling business. It found widespread evidence of skimming and other criminal activity.


• The result of the Senate investigation was a crackdown on criminal influence in gambling and a cleansing of the casino industry nationwide. Organized crime sold their casinos to lawful individuals and publicly-traded companies.

• In 1978, New Jersey became the second state to legalize casino gambling in an attempt to revitalize the Atlantic City area.

• In the late 1980’s, casino gambling made history again when the tribal gaming casinos began to pop-up across the country on Indian Reservations.

• Following the Indian Reservation gaming boom, riverboat gambling began to emerge.


• In Mississippi, Tunica became a gaming giant and brought prosperity to this economically poor state. Gaming continues to thrive in Mississippi today.

• In the 1990’s, other states jumped into the casino business, including Indiana.

History of Casinos in Indiana

• On July 1, 1993, the Indiana General Assembly passed the Riverboat Gambling Act, which permitted casino gaming on riverboats. It established the Indiana Gaming Commission and vested it with authority to issue gaming licenses and to regulate this new industry.

• The Indiana Department of Revenue was given responsibility for collecting admission and wagering taxes.

• The Act also authorized the Governor to appoint a bipartisan seven-member commission to provide oversight.

• The Act authorized 11 licenses to be issued. Competition for these licenses was strong, with 52 applications being filed.


• Licenses were issued over several years. By 1996, six boats were open and operating. Two more opened in 1997.

• In 2004, the Indiana General Assembly passed legislation allowing a casino in Orange County, Indiana.

• In July, 2004, the Indiana Gaming Commission awarded the new casino project in Orange County to Trump Indiana Casino Management, LLC. However, after the Trump organization filed for bankruptcy, the project was terminated and a new RFP was issued.


• Blue Sky Casino, LLC, responded with an exciting proposal which included refurbishment of both the West Baden and French Lick historic hotels. The Commission voted in favor of Blue Sky on June 23, 2005. In November, 2006, the French Lick Resort Casino opened as a destination resort.

• In 2005, the Indiana General Assembly passed legislation to allow the Indiana Gaming Commission to employ its own gaming agents. Since the inception of gaming in Indiana, the Commission had contracted with the Indiana State Police to serve as investigators and enforcement officers on riverboats. This new law shifted this responsibility to the Commission.


• Today, the Indiana Gaming Commission employs 128 gaming agents, 11 supervisors, and 4 investigators.

ADMISSIONS 3,903,885 1,966,663 3,284,646 3,319,677 1,497,489 1,005,122 1,797,937 4,118,085 1,583,258 1,583,258 3,477,317

TOTAL ADMISSIONS FOR ALL RIVERBOATS 27,537,337

RESORTSMAJESTIC

STAR IHORSESHOE MAJESTIC

STAR IIFRENCH

LICKGRAND

VICTORIAARGOSY BLUE CHIP CAESARS CASINO AZTARBELTERRA

TOTAL ADMISSIONS PER RIVERBOAT - FY 2007

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

Distribution of Riverboat Admissions Tax and Wagering Tax

Cumulative TotalFiscal Year Fiscal Years

2007 1996-2007

Rivberboat Admissions Tax

Distribution to State/Local Units* $127,189,850 $1,178,023,866

Riverboat Wagering Tax

Distribution to Property Tax Replacement Fund $486,274,698 $2,122,061,160

Local Revenue Sharing ** $33,000,000 $165,000,000

Distribution to Lottery and Gaming Surplus Account $94,748,685 $1,824,513,882

Distribution to Local Units $103,101,538 $910,234,575

Grand Total $844,314,772 $6,199,833,482

*

** P.L 224-2003 required the $33 million set aside for local revenue sharing for FY 2003 to be deposited in the state General Fund. In FY 2004, FY 2005, FY 2006 and FY 2007 $33 million was distributed to the local units in counties which do not have any riverboat casino.

In FY 2007 $625,314,369 in wagering tax revenues were deposited in the property tax replacement fund (PTRF). In Sep 2006, $44,290,985 was transferred from PTRF to the local units to address the admissions tax distribution shortfall for the previous fiscal year. In June 2007 $94,748,685 was transferred from PTRF to the Build Indiana Fund (BIF) to meet the statutory requirement.

FY 2007 Tax OverviewIn FY 2007, riverboat gaming operations in Indiana generated $767,863,554 in wagering tax, and $83,617,133 in admission tax, for a tax total of $851,480,687.

FY 2007 Win Wagering Tax Admission Tax Total Tax

Argosy $480,655,921 $153,171,412 $11,711,655 $164,883,067

Belterra $171,928,620 $45,158,983 $5,899,989 $51,058,972

Blue Chip $267,254,458 $85,188,799 $9,853,938 $95,042,737

Caesars $341,020,147 $104,849,844 $9,959,031 $114,808,875

Casino Aztar $123,451,731 $29,479,589 $4,492,467 $33,972,056

French Lick $110,920,428 $13,493,576 $4,020,488 $17,514,064

Grand Victoria $149,924,858 $37,446,789 $5,393,811 $42,840,600

Horseshoe $444,320,933 $140,596,714 $12,354,255 $152,950,969

Majestic Star I $138,112,435 $33,944,598 $4,749,774 $38,694,372

Majestic Star II $115,111,365 $27,178,788 $4,749,774 $31,928,562

Resorts $321,254,597 $97,354,462 $10,431,951 $107,786,413

Totals $2,663,955,493 $767,863,554 $83,617,133 $851,480,687

2007 TOTAL TAXES PER RIVERBOAT

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

180,000,000

ARGOSY BELTERRA BLUE CHIP CAESARS CASINOAZTAR

FRENCHLICK

GRANDVICTORIA

HORSESHOE MAJESTICSTAR I

MAJESTICSTAR II

RESORTS

Tota

l Tax

WAGERING TAX ADMISSION TAX

CASINO AZTAR4%

FRENCH LICK2%

GRAND VICTORIA5%

HORSESHOE 18%

MAJESTIC STAR I5%

MAJESTIC STAR II4%

RESORTS13%

CAESARS 13%

BLUE CHIP 11%

BELTERRA 6%

ARGOSY 19%

2007 Gaming/Casino Taxes by Riverboat

15% 7/1/2006 15% 7/1/200620% 7/31/2006 20% 7/19/200625% 9/1/2006 25% 8/7/200630% 10/2/2006 30% 8/26/200635% 1/10/2007 35% 10/24/200615% 7/1/2006 15% 7/1/200620% 7/21/2006 AGR Rate 20% 8/19/200625% 8/12/2006 less than $25 million 15% 25% 10/10/200630% 9/4/2006 $25 - $50 million 20% 30% 12/7/200635% 11/4/2006 $50 - $75 million 25% 35% 5/14/200715% 7/1/2006 $75 - $150 million 30% 15% 7/1/200620% 9/7/2006 over $150 million 35% 20% 7/27/200625% 11/18/2006 25% 8/23/200630% 1/25/2007 30% 9/19/200635% 35% 12/10/200615% 7/1/2006 15% 7/1/200620% 9/20/2006 20% 9/8/200625% 12/15/2006 25% 11/20/200630% 3/3/2007 30% 2/4/200735% 35% 15% 7/1/2006 15% 10/31/200620% 7/29/2006 20% 1/27/200725% 8/28/2006 25% 4/27/200730% 9/28/2006 30%35% 12/23/2006 35%

15% 7/1/200620% 8/26/200625% 10/27/200630% 12/31/200635%

GRADUATED TAX STATUS - FY 2007

Blue Chip

Horseshoe

North Boats RateDate of Change

South Boats RateDate of Change

Grand Victoria

Majestic Star I

Resorts

Argosy

Belterra

Caesars

Casino Aztar

French Lick

Majestic Star II

State AGR Total Tax RateNevada $12,739,130,575 $1,035,456,279 8.1%Indiana $2,642,350,836 $851,480,687 32.2%Illinois $1,923,528,409 $830,239,764 43.2%New Jersey $5,166,566,000 $444,324,676 8.6%Missouri $1,465,658,073 $387,170,073 26.4%Louisiana $1,781,964,944 $383,122,463 21.5%Mississippi $2,808,924,601 $332,285,489 11.8%Iowa $860,076,528 $175,235,736 20.4%

2007 Gaming Taxes and Rates by State

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

2007 Gaming/Casino Tax Rates by State

2007 Gaming/Casino Taxes Collected

$0

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

Revenues & ExpendituresFeesOccupational LicensingApplications $796,778Permanent/Renewal $499,750Other (replacement badges) $5,370Subtotal $1,301,898

Riverboat LicensingApplications $0Permanent/Renewal $50,000Other - License Transfer $100,000Subtotal $150,000

Supplier Licensing Applications $10,000Permanent/RenewalOther - (transfer) $0Subtotal $135,000

Charity Gaming*Licensing $4,884,175Penalties $31,700Subtotal $4,915,875Total Fees $6,502,773

FinesRiverboats $603,000Suppliers $4,500Voluntary Self Exclusion $63,431Total Fines $670,931

ExpendituresIGC Administration Salary & Wages $1,934,164 Other Operating & Encumbrances $611,795 Subtotal $2,545,959

Background Investigations Unit Salary & Wages $665,556 Other Operating & Encumbrances $217,416Less Reimbursements ($347,729) Subtotal $535,243

Charity Gaming DivisionSalary/Wages $775,523Other Operating & Encumbrance $301,770Subtotal $1,077,293Net Total Expenditures $4,158,495

Expenditures and Reimbursements for Gaming Enforcement**Salary & Wages - IGC Agents $6,827,599Salary & Wages - ISP Agents $3,589,546Operating & Encumbrance - IGC $929,403Operating & Encumbrance - ISP $462,892

* Does not include Charity Gaming Excise Tax of $1,428,736 collected by IDOR

** Fully reimbursed by the riverboat casinos ISP ceased gaming agent duties as of March 2007

Gaming Operations – FY 2007

TABLEEGD'S UNITS* COIN IN WIN GAMES

1 CENT 3,794 3,389,556,853 395,541,412 Baccarat 42 310,001,929 48,006,172

2 CENT 1563 1,363,497,594 159,619,674 Big Six 1 1,912,487 954,265

3 CENT 53 18,717,114 2,426,499 Blackjack/21 312 1,238,947,304 176,362,029

5 CENT 3,190 3,681,411,933 400,862,929 Craps 45 412,242,070 79,145,415

10 CENT 163 272,933,973 28,539,303 Poker *** 103 333,108,845 73,387,360

25 CENT 4,348 6,163,461,285 465,265,503 Poker Room ** 137 36,960,740 36,960,745

50 CENT 856 1,193,743,894 102,828,590 Roulette 41 149,729,349 37,857,569

$1 3,934 7,862,305,545 512,101,107 Other**** 0 0 899,801

$2 46 139,481,538 5,363,999 TOTAL 681 $2,482,902,724 $453,573,356

$5 525 1,837,450,803 89,750,068

$10 41 191,286,690 8,159,796

$20 N/A 20,231,020 665,401 * As of June 30, 2007$25 64 261,173,545 9,733,107 ** Traditional Poker

$100 22 120,450,700 6,328,836 *** Includes Caribbean Stud, Let It Ride, Pai Gow,$500 1 292,000 6,600 3 Card, Boston 5 Stud, 3-5-7, Wild Hold Em Fold

Other ** 0 $0 77,480 Em, Crazy 4, and 2-2-1TOTAL 18,600 $26,515,994,487 $2,187,270,304 **** Tournament receipts

* As of June 30, 2007** Tournament receipts

Totals may include minor variations due to rounding.

UNITS* DROP WIN

TABLE GAMES SUMMARYEGD SUMMARY

CASINO FRENCH GRAND MAJESTIC MAJESTIC UNITS* ARGOSY BELTERRA BLUE CHIP CAESARS AZTAR LICK VICTORIA HORSESHOE STAR I STAR II RESORTS

Baccarat 3 N/A 2 2 N/A N/A N/A 13 10 N/A 12Big Six 1 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Black Jack 37 28 32 53 24 21 22 26 26 9 34Craps 6 4 4 7 4 3 3 6 2 2 4

Poker*** 20 10 11 14 8 6 8 8 9 3 6Poker Room** 15 12 8 33 12 12 8 N/A N/A 21 16

Roulette 7 3 5 6 3 2 2 5 2 2 4TOTAL 89 57 62 115 51 44 43 58 49 37 76

DROPBaccarat 11,558,678 215,345 12,822,799 11,357,580 N/A 0 N/A 152,010,144 39,079,031 0 82,958,352Big Six 1,398,865 N/A N/A 336,345 177,277 N/A N/A N/A N/A N/A N/A

Black Jack 179,630,703 80,115,023 96,939,269 184,592,859 43,852,395 27,588,290 42,756,158 284,531,883 88,235,151 18,006,279 192,699,294Craps 59,679,994 27,750,513 21,904,881 60,668,766 16,181,958 9,307,867 19,620,287 115,394,895 18,152,850 10,572,823 53,007,236

Poker*** 72,747,453 23,320,073 33,531,858 53,215,134 18,212,354 10,669,371 16,290,325 50,762,903 25,735,327 6,169,940 22,454,107Poker Room** 7,227,142 1,282,635 1,873,470 7,215,313 2,293,702 736,440 803,255 0 0 7,248,198 8,280,585

Roulette 29,412,240 6,914,357 10,896,372 25,213,318 6,374,772 3,426,576 3,954,191 32,462,792 7,950,437 4,106,223 19,018,071TOTAL 361,655,075 139,597,946 177,968,649 342,599,315 87,092,458 51,728,544 83,424,216 635,162,617 179,152,796 46,103,463 378,417,645

WIN Baccarat 2,390,772 -16,530 1,798,975 1,779,822 N/A N/A N/A 23,074,548 6,454,048 0 12,524,537Big Six 722,275 N/A N/A 142,596 89,394 N/A N/A N/A N/A N/A N/A

Black Jack 28,695,541 11,385,195 13,453,062 28,887,992 6,836,112 3,577,360 6,832,708 37,271,327 10,419,717 2,178,883 26,824,132Craps 12,984,080 4,749,357 4,780,689 13,262,807 3,546,376 1,924,684 4,121,021 19,725,715 3,988,453 2,192,623 7,869,610

Poker*** 15,242,202 4,890,301 9,059,586 12,844,939 3,696,182 2,612,549 3,568,619 9,981,013 5,419,091 941,225 5,131,653Poker Room** 7,227,142 1,282,635 1,873,470 7,215,313 2,293,707 736,440 803,255 0 0 7,248,198 8,280,585

Roulette 8,202,149 1,627,993 3,083,128 5,852,707 1,556,683 907,663 995,131 8,092,410 2,013,838 1,001,315 4,524,552Other 169,940 0 0 26,385 0 98,311 27,245 0 0 485,700 92,220

TOTAL 75,634,101 23,918,951 34,048,910 70,012,561 18,018,454 9,857,007 16,347,979 98,145,013 28,295,147 14,047,944 65,247,289

* As of 6/30/07 ** Traditional Poker *** Includes Caribbean Stud/Draw, Let It Ride, Pai Gow, 3 Card, Boston 5 Stud, 3-5-7, Wild Hold em Fold Em, Crazy 4, and 2-2-1

Totals may include minor variations due to rounding

2007 SUMMARY OF TABLE GAME ACTIVITY As reported for the year ended June 30, 2007

CASINO FRENCH GRAND MAJESTIC MAJESTICUNITS* ARGOSY BELTERRA BLUE CHIP CAESARS AZTAR LICK VICTORIA HORSESHOE STAR I STAR II RESORTS

1 cent 329 506 252 550 247 423 450 N/A 480 242 3152 cent 329 46 176 126 76 220 N/A 117 109 246 1183 cent N/A N/A N/A N/A N/A N/A N/A 53 N/A N/A N/Anickel 357 160 519 301 223 81 263 451 126 247 462

10 cent 145 N/A N/A N/A N/A N/A N/A 14 N/A N/A 425 cent 493 425 588 505 310 287 315 482 252 350 34150 cent 204 119 24 45 74 36 69 153 16 16 100

$1 436 359 529 445 261 142 283 598 203 192 486$2 N/A N/A N/A N/A N/A N/A N/A 23 N/A 12 11$5 94 43 53 66 69 10 50 48 21 15 56

$10 14 10 N/A N/A 17 N/A N/A N/A N/A N/A N/A$20 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A$25 13 7 6 5 6 2 6 5 8 N/A 6$100 3 4 1 2 2 1 1 4 N/A N/A 4$500 N/A N/A N/A 1 N/A N/A N/A N/A N/A N/A N/Aother N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

TOTAL 2,417 1,679 2,148 2,046 1,285 1,202 1,437 1,948 1,215 1,320 1,903

COIN IN1 cent 350,947,662 412,340,942 196,478,068 533,489,262 203,190,742 174,133,635 436,266,678 12,577,277 435,483,353 187,297,092 447,352,1422 cent 465,073,439 58,924,218 113,005,422 142,823,018 41,439,282 115,490,973 N/A 45,993,896 65,037,801 180,373,198 135,336,3473 cent N/A N/A N/A N/A N/A N/A N/A 18,717,114 N/A N/A N/Anickel 486,432,528 168,146,868 515,566,762 414,707,575 166,064,287 48,705,600 143,576,362 675,771,286 180,953,164 184,181,281 697,306,220

10 cent 237,740,900 N/A N/A N/A 0 0 0 18,961,641 0 2,147,276 14,084,15625 cent 955,239,619 516,875,383 908,225,463 898,528,061 248,448,040 155,330,345 393,445,974 1,012,066,238 262,948,318 397,844,011 414,509,83350 cent 386,711,965 98,155,480 37,980,236 108,632,283 54,600,541 26,553,658 51,988,329 273,932,660 48,968,318 16,654,348 89,566,076

$1 1,604,118,438 430,361,463 1,163,744,879 842,763,778 324,231,284 134,695,731 479,919,506 1,571,985,337 303,824,071 249,502,996 757,158,062$2 N/A N/A N/A N/A 0 0 0 108,413,638 1,039,278 17,929,566 12,099,056$5 634,442,740 108,031,465 218,169,245 269,496,896 103,998,762 20,276,835 110,972,420 219,068,960 26,526,240 27,259,300 99,207,940

$10 95,401,090 23,445,200 18,120,340 13,727,140 23,283,960 0 0 0 0 0 17,308,960$20 N/A N/A N/A 20,231,020 0 0 0 0 0 0 0$25 131,797,100 15,974,000 37,799,125 4,108,070 12,373,325 3,905,925 18,439,150 19,294,375 6,454,250 287,925 10,740,300$100 39,832,900 16,690,300 7,187,900 19,610,600 13,529,500 1,690,900 4,602,300 12,372,100 447,000 0 4,487,200$500 N/A N/A N/A 292,000 0 0 0 0 0 0 0other N/A N/A N/A 0 0 0 0 0 0 0 0

TOTAL 5,387,738,381$ 1,848,945,319$ 3,216,277,440$ 3,268,409,703$ 1,191,159,723$ 680,783,602$ 1,639,210,719$ 3,989,154,522$ 1,331,681,793$ 1,263,476,993$ 2,699,156,292$

WINI cent 42,859,226 46,694,135 26,826,552 63,257,586 23,451,060 19,138,164 41,907,519 1,623,675 50,633,403 22,264,874 56,885,2182 cent 51,637,341 6,160,105 15,146,002 17,978,832 4,920,840 10,922,902 0 5,811,397 7,316,234 22,067,069 17,658,9523 cent N/A N/A N/A N/A N/A N/A N/A 2,426,499 N/A N/A N/Anickel 51,920,752 15,075,862 60,805,965 44,093,768 19,309,568 4,442,260 17,009,214 83,000,624 11,547,394 17,292,505 76,365,017

10 cent 24,190,163 0 0 0 0 0 0 2,616,655 0 240,107 1,492,37825 cent 70,951,271 33,558,627 64,620,318 58,390,266 22,728,878 11,465,855 29,461,213 97,184,918 17,973,961 24,052,541 34,877,65550 cent 31,364,416 7,894,745 2,387,022 10,468,601 4,864,359 2,295,763 4,777,959 26,254,831 2,166,358 1,471,189 8,883,347

$1 97,826,958 28,353,005 71,226,752 61,046,492 21,622,720 9,078,355 33,027,126 108,330,594 18,589,263 12,056,632 50,943,210$2 N/A 0 0 0 0 0 0 4,005,559 27,567 682,846 648,027$5 26,773,024 7,097,094 8,800,758 13,150,879 6,095,288 1,144,959 6,143,918 12,356,102 1,201,383 899,130 6,087,533

$10 2,939,261 1,004,229 1,002,520 868,361 1,172,851 0 0 58,991 0 0 1,113,583$20 0 0 0 665,401 0 0 0 0 0 0 0$25 3,555,427 688,801 1,305,819 326,942 741,417 290,300 865,030 977,556 310,500 36,528 634,787$100 926,501 1,483,066 201,420 753,858 526,296 55,450 384,900 1,528,519 51,225 0 417,601$500 0 0 0 6,600 0 0 0 0 0 0 0other 77,480 0 0 0 0 0 0 0 0 0 0

TOTAL 405,021,820$ 148,009,669$ 252,323,128$ 271,007,586$ 105,433,277$ 58,834,008$ 133,576,879$ 346,175,920$ 109,817,288$ 101,063,421$ 256,007,308$

* as of 6/30/07 Totals may include minor variations due to rounding.

2007 SUMMARY OF EGD ACTIVITYAs reported for the fiscal year ended June 30, 2007

Local Development Agreement Payments

2003 2004 2005 2006 2007 Total

Argosy 31,267,998 36,484,324 39,905,759 41,031,924 45,701,311 194,391,316 Aztar 5,030,919 5,171,601 5,272,075 5,314,135 4,748,514 25,537,244

Belterra 1,923,318 1,344,732 1,649,268 1,739,623 1,782,216 8,439,156 Blue Chip 3,695,702 3,996,755 4,339,866 4,878,636 5,885,254 22,796,213 Caesars 13,933,820 15,934,084 16,443,546 19,756,903 20,807,561 86,875,914

French Lick - - - 177,574 2,112,299 2,289,873 Grand Victoria 2,513,337 2,416,358 2,382,651 2,445,437 2,100,314 11,858,097

Horseshoe 23,365,948 23,000,834 24,475,699 24,416,415 27,936,542 123,195,438 Majestic Star 4,103,373 4,488,047 4,508,692 4,582,849 4,745,103 22,428,064

Majestic Star II 5,482,371 7,001,585 5,553,363 2,933,894 2,894,268 23,865,481 Resorts 11,953,726 12,209,948 10,882,023 12,065,441 12,057,670 59,168,809 Total 103,270,512 112,048,268 115,412,942 119,342,831 130,771,053 580,845,605

Local Development Agreement Payments – North Boats

2003 2004 2005 2006 2007 Total

2,585,560 2,995,589 3,339,976 3,830,158 4,935,254 17,686,537 909,676 750,000 750,000 750,000 750,000 3,909,676 200,466 251,166 249,890 298,478 200,000 1,200,000

- 3,695,702 3,996,755 4,339,866 4,878,636 5,885,254 22,796,213

2003 2004 2005 2006 2007 Total1,195,158 932,500 870,267 809,232 801,602 4,608,759

- - 3,529,293 3,529,293 15,559,656 16,691,504 18,266,824 18,266,979 18,266,979 87,051,942 3,705,457 4,067,302 4,276,019 4,085,745 4,146,759 20,281,282 1,633,211 1,271,366 1,062,589 1,252,923 1,191,909 6,411,998

413,132 11,523 424,655

859,334 26,639 1,536 887,509 -

23,365,948 23,000,834 24,475,699 24,416,415 27,936,542 123,195,438

2003 2004 2005 2006 2007 Total3,047,421 3,132,992 2,901,877 3,217,451 3,127,114 15,426,856 3,047,421 3,132,992 2,901,877 3,217,451 3,215,379 15,515,121

176,529 176,529 East Chicago Community Foundation 3,047,421 3,132,992 2,901,877 3,217,451 3,127,114 15,426,856 East Chicago Second Century /Escrow * 2,285,566 2,349,745 2,176,392 2,413,088 2,411,534 11,636,324 Home Buying Assistance Program 84,897 20,226 105,123

Land Lease Payment 441,000 441,000 882,000 11,953,726 12,209,948 10,882,023 12,065,441 12,057,670 59,168,809

* Note: Payments for the East Chicago Second Century are currently being held in escrow.

2003 2004 2005 2006 2007 Total4,103,373 4,488,047 4,508,692 3,066,106 3,105,732 19,271,950

1,516,743 1,639,371 3,156,114 4,103,373 4,488,047 4,508,692 4,582,849 4,745,103 22,428,064

2003 2004 2005 2006 2007 Total

5,382,371 5,630,989 5,553,363 2,933,894 2,894,268 22,394,885 100,000 100,000 200,000

0 1,270,596 1,270,596 -

5,482,371 7,001,585 5,553,363 2,933,894 2,894,268 23,865,481

Total

Port Authority - admin $1

$ 5 Million residential development

Horseshoe - Hammond

City - per 2006 MOAB AgreeCity - Annual AGR %

Payee/descriptionPolice/Fire /Public Safety

Railroad relocation agreePort Authority - admin shortfall

Payee/description

City of Michigan CityMC Community EnrichmentMC Economic Development

Total

Blue Chip - Michigan City

Payee/descriptionTwin City Education Foundation

Resorts - East Chicago

Majestic Star - Gary

Total

City of East Chicago

Stadium & Roadway Development

City of GaryPayee/description

Payee/description

City of Gary - AGR %

Twin City/EC Community Escrow

Infrastructure Improvement

Trump Foundation

TotalLakeShore Dev Fund/ Escrow

Total

Majestic Star II - Gary

Local Development Agreement Payments – South Boats

2003 2004 2005 2006 2007 Total

31,267,998 36,484,324 39,905,759 41,031,924 45,701,311 194,391,316 - - -

31,267,998 36,484,324 39,905,759 41,031,924 45,701,311 194,391,316

2003 2004 2005 2006 2007 Total

2,930,919 3,071,601 3,172,075 2,214,135 1,648,514 13,037,244 -

2,100,000 2,100,000 2,100,000 3,100,000 3,100,000 12,500,000 -

5,030,919 5,171,601 5,272,075 5,314,135 4,748,514 25,537,244

* Note: park lease payments are net of any pre-payments and/or redevelopment credits.* * - Pre-payments of $10.5 million in 12/00 and $ 15.5 million in 12/05 - funds utilized for local initiatives

Payee/description 2003 2004 2005 2006 2007 Total

Switzerland County Public School Endowment Fund 539,364 369,182 255,316 73,240 1,237,102 Vevay-Switzerland County Foundation 271,007 185,499 128,390 36,620 621,515 Vevay Town Board 271,007 185,499 128,390 36,620 621,515 Patriot Town Board 94,033 64,363 44,223 12,802 215,421

804,024 804,024 1,347,708 1,526,126 2,873,834

Interlocal Agreement with Switzerland County 652,793 452,966 228,471 226,674 256,090 1,816,993 Interlocal Agreement with Crawford County 95,114 87,223 60,454 5,959 248,751

- 1,923,318 1,344,732 1,649,268 1,739,623 1,782,216 8,439,156

* Note: Beginning April 2006, one payment is made to the Switzerland County Treasurer for distibution by the county auditor

2003 2004 2005 2006 2007 Total

10,450,365 11,950,629 12,332,660 14,817,677 15,605,671 65,157,001

3,483,455 3,983,455 4,110,887 4,939,226 5,201,890 21,718,913 -

13,933,820 15,934,084 16,443,546 19,756,903 20,807,561 86,875,914

2003 2004 2005 2006 2007 Total

1,927,262 2,416,358 2,382,651 2,445,437 2,100,314 11,272,022 586,075 - 586,075

- 2,513,337 2,416,358 2,382,651 2,445,437 2,100,314 11,858,097

2003 2004 2005 2006 2007 Total

56,824 675,936 732,760 60,375 718,182 778,557 60,375 718,182 778,557

- - - - 177,574 2,112,299 2,289,873

Switzerland Co Treasurer - new agreement*Switzerland Co Treasurer - 1998 Agreement

Belterra - Switzerland County

Total

Harrison Co. Community Foundation

Caesars - Harrison County

Payee/description

City of Evansville - park lease *

Total

Pre-payments to City of Evansville-amortized **

Total

Argosy - LawrenceburgPayee/description

City of Lawrenceburg

Aztar - Evansville

Payee/description

Caesars Riverboat Casino Foundation

French Lick Resort Casino - Orange CountyPayee/description

Orange County

OtherTotal

Rising Sun Reg FoundationsSettlement - Admissions

Grand Victoria - Rising Sun

West Baden Town Hall

Total

French Lick City Hall

Total

Payee/description


• Notable capital expenditures totaling nearly $335 Million, not including gaming equipment purchases and general maintenance, in FY 2007 are as follows:

– Argosy spent $35 million towards its $310 million project that will include a new riverboat casino, parking facility, and related infrastructure.

– Belterra spent $5.3 million for new retail facilities.

– Caesars spent $30 million on upgrades to its riverboat casino.

– Horseshoe spent $121 million towards its $485 million new riverboat casino project.

– Finally, $2.5 million was spent by Majestic Star on pavilion improvements, restaurant renovations, and an entertainment venue.

• In 2006, Blue Chip completed a $175 million project, which included a new riverboat casino, parking structure, and improvements to the pavilion. Blue Chip recently announced the expansion of its $135 million hotel complex which is scheduled to be completed in 2008.


• In 2005-2006, French Lick Resort & Casino invested $380 million in a new casino flanked by the fully-restored and renovated French Lick Springs and West Baden hotels, as well as two adjoining championship golf courses.

• In 2006, Casino Aztar, as part of its new development agreement with the City of Evansville, invested $20 million in an entertainment complex and a new hotel.

• Horseshoe invested $47 million to re-brand its riverboat casino – Caesars Indiana – located in Harrison County. This investment includes upgraded restaurants and other improvements.

Hoosier Lottery$30 M to Pension Relief Fund and$30 M to Teacher's Retirement Fund. Lottery and Gaming SurplusBalance to the Build Indiana Fund. Motor Vehicle Excise Tax

Replacement AccountRiverboat Wagering Tax

Funds certain administrative costs ofthe Indiana Gaming Commission; $ 33 Mil set aside for revenue sharing;25% upto FY 2002 level to local units;remaining deposited in the PTRF. An amount is transferred from PTRF to the Build Indiana Fund to meet the cap of $ 250 million for each fiscal year.

Parimutuel Wagering Tax Appropriations to:$150,000 to the Purdue University > Indiana Technology FundVeterinary School Research Account. > 21st Century Research Balance to the Build Indiana Fund. and Technology Fund

> Higher Education Technology Distribution toCharity Gaming Enforcement Fund > Indiana PBS Stations Counties for

Funds certain administrative costs of > Budget Committee approval of Motor Vehiclethe Indiana Department of Revenue. local capital projects Excise TaxBalance to the Build Indiana Fund. Replacement

$236.2 million in FY 2007$236.2 million in FY 2006

BUILD INDIANA FUND

Sources and Uses

Excise Tax Distribution

Build IndianaFund

Surplus after Motor Vehicle

$236.2 million in FY 2005

$147.3 million in FY 1997$167.6 million in FY 1998$193.2 million in FY 1999$219.8 million in FY 2000$234.7 million in FY 2001$236.2 million in FY 2002$236.2 million in FY 2003$236.2 million in FY 2004

Disposition of Lottery and Gaming Revenues FY 1989 – FY 2007

RIVERBOAT WAGERING TAX

HOOSIER LOTTERY PROFITS

PARI-MUTUEL WAGERING TAX

CHARITY GAMING TAX

IND GAMING COMMISSIONADMINISTRATIVE EXPENSES

TEACHER’S RETIREMENT FUND

IND HORSE RACING COMMISSION ADMINISTRATIVE EXPENSES

DEP OF REVENUEADM EXPENSES

LOCAL UNITS WITH RIVERBOATS

$ 33 Mil in LOCAL REVENUE SHARING

PROPERTY TAX REPLACEMENT FUND

$165.0 Mil$ 336.3 Mil

$ 522.6 Mil

$5220.6 Mil $ 3082.0 Mil $49.1 Mil $72.2 Mil

$910.2 Mil

$ 150,000 to THE PURDUE UNIVERSITY VETERINARY SCHOOL RESEARCH ACCOUNT

POLICE/FIRE PENSION RELIEF FUND

BUILD INDIANA FUNDWAGERING TAX - $ 1824.5 Mil

LOTTERY PROFITS - $ 2221.3 MilHORSE RACING - $ 27.3 MilCHARITY GAMING - $ 56.2 MilSTATE TRANSFERS - $ 135.1 MilINTEREST - $ 115.2 Mil

$4379.6 Mil

$ 2.0 Mil

State/local units receive supplemental distribution if admissions tax distribution

does not meet FY 2002 guaranteed level.

$166.6 Mil

$ 2524.7 M to local units for motor vehicle excise tax replacement; Remainder available for state and local projects.

$2122.1 Mil

$32.2 Mil $19.9 Mil $16.0 Mil

$ 1.8 Mil

HELP AMERICA VOTE ACT.

FY 2007 Disposition of Lottery and Gaming Revenues

RIVERBOAT WAGERING TAX

HOOSIER LOTTERY PROFITS

PARI-MUTUEL WAGERING TAX

CHARITY GAMING TAX

Admission Tax Hold Harmless revenues include $6.5 Mil withheld from local units receiving admissions tax for homestead income tax credits provided in 2001-03.

GAMING COMMISSIONADMINISTRATIVE EXPENSES

TEACHER’S RETIREMENT FUND HORSE RACING COMMISSION ADMINISTRATIVE EXPENSES

GAMING COMMISSIONADMINISTRATIVE

EXPENSES

LOCAL UNITS WITH RIVERBOATS (CAPPED)

REVENUE SHARING WITH NON-CASINO COUNTIES

ORANGE COUNTY LOCAL UNITS and FUNDS

$ 33.0 Mil $ 30.0 Mil

$ 30.0 Mil

$763.9 Mil $210.9 Mil $4.2 Mil $ 6.3 Mil

$ 95.0 Mil

PURDUE UNIVERSITY VETERINARY SCHOOL RESEARCH ACCOUNT

LOCAL POLICE & FIRE FIGHTERS PENSION RELIEF FUND

BUILD INDIANA FUNDLOTTERY PROFITS - $150.9 MilHORSE RACING - -$0.1 MilCHARITY GAMING - $4.5 Mil BIF GUARANTEE from PTRF (Riverboat) - $94.7 Mil

BIF GUARANTEE -An amount is transferred from the PTRF to the Build Indiana Fund to meet the cap of $ 250.0 Mil for each fiscal year.

$ 250.0 Mil

$ 150,000

ADMISSION TAX HOLD HARMLESS State/local units receive supplemental distribution if admissions tax distribution does not meet FY 2002 guaranteed level.

$44.3 Mil

$ 236.2 M to local units for motor vehicle excise tax replacement; Remainder available for state and local projects.

FINAL AMOUNT REMAINING IN THE PTRF (After BIF and Admissions Tax Dist.)

$486.3 Mil

$2.5 Mil $3.8 Mil

$1.8 Mil

$ 8.1 Mil

STANDARDBRED HORSE FUND

$ 387,000


• In 2007, the Indiana General Assembly also passed legislation which made changes to the Charity Gaming laws. Also, the Governor and both chambers concluded that Indiana needed an organized and concerted effort to combat illegal gambling.

• This law created two new divisions under the Commission’s jurisdiction. The first is the Gaming Control officers who focus on illegal slot machines commonly known as “Cherry Masters”. The second division is the License Control Counselor, who can prosecute a regulatory action and revoke charity gaming licenses, retail merchant’s certificates, and alcohol and tobacco licenses.


• During 2007-2008, more than 1,400 illegal gambling machines and related equipment were seized and/or disabled. In addition, the Gaming Commission has confirmed that at least 1,500 Cherry Masters were voluntarily removed from Indiana. The total number of machines voluntarily removed from Indiana is probably much higher.

• In 2008, the Indiana General Assembly passed legislation to allow Type II gaming (pull-tabs, punch boards, and tipboards) in bars/taverns in Indiana. The bill’s proponents argued successfully to legislators that bars/taverns needed “parity” with the lodges/clubs already engaging in this activity. This new law becomes effective July 1, 2008.

FEDERAL GAMING BILLS

Federal Gaming

• In 2007-2008, Congressman Barney Frank has a bill (H.R. 2046) in Congress which would legalize Internet gambling across the country, and undermine the ability of states to make and enforce their own gambling laws. His bill would create a federal licensing program run by the U.S. Treasury Dept.

• Rep. Frank’s bill would largely reverse the Unlawful Internet Gambling Enforcement Act which Congress just passed in 2006. This law drove many illicit gambling operators from the U.S. marketplace.

• Governor Daniels opposes Rep. Frank’s bill, and sent a letter to Congress last November urging its defeat.

Federal Gaming

• In 2006, Indiana updated its gambling laws to specifically prohibit Internet gambling. Indiana law now clearly provides that using the Internet to engage in gambling in Indiana, or with a person who is located in Indiana, is a felony.

QUESTION & ANSWER SESSION

Notes/Bibliography

• The information for this presentation was gathered from a variety of sources, including those listed below. In many instances, direct quotes from the authors of these articles were used in the presentation.

• 1. Annual Reports of the Hoosier Lottery

• 2. Annual Reports of the Indiana Horse Racing Commission

• 3. Annual Reports of the Indiana Gaming Commission

• 4. History of Gambling in the United States, http://www.library.ca.gov/crb

• 5. Casino History, http://www.online-casinos.co.uk/Casino

• 6. American Casino History, http://www.uscasinolinks.com

• 7. The History of Horse Racing, http://www.mrmike.com/explore

• 8. Horse Racing, http://www.horsebettingnotes.com/horse-racing-history

• 9. Lottery History, http://www.e-lottery-blog.co.uk/index

• 10. A History of Horse Racing, http://www.derbypost.com/history

• 11. The History of Lottery, http://ezinearticles.com/?The-History-of-Lottery

http://www.library.ca.gov/crb

http://www.online-casinos.co.uk/Casino

http://www.uscasinolinks.com/

http://www.mrmike.com/explore

http://www.horsebettingnotes.com/horse-racing-history

http://www.e-lottery-blog.co.uk/index

http://www.derbypost.com/history

http://ezinearticles.com/?The-History-of-Lottery

GAMING ACTIVITIES. History of Gaming Lotteries Horse Racing Casinos.

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