Tribal casino to take Indiana market by storm
The Pokagon Band of Potawatomi Indians’ Four Winds South Bend is set to become a tough competitor for rest of the Indiana casino industry.
US.- January 16 will set a benchmark in the Indiana casino industry as the Pokagon Band of Potawatomi Indians will open the first tribal casino in the state, the Four Winds South Bend. As a sovereign tribe, operators won’t have to pay the usual tax rate of 15-40 per cent and will only be charged with 2 per cent of its annual revenue, posing a serious challenge for its competitors.
Despite the tax advantage, Boyd Gaming (which operates the Blue Chip casino in Michigan city) spokesperson David Strow said “competition is nothing new to [the Blue Chip casino],” and added: “We have seen several new casino properties open in this region over the last 10 years, and Blue Chip has continued to compete successfully each time over that timeframe.”
According to Four Winds COO Frank Freedman, potential customer migration for two of the three company casinos will result in a net gain. “The net effect (of migration) is plus, plus, plus,” he said and assessed: “For some of our guests who currently frequent New Buffalo that live here, it will be natural to start coming (to the Four Winds South Bend).”
Furthermore, according to the Indiana Casino Association, the new venue will strike hard on casino tax revenue as it estimates a drop of up to US$64 million over the next five years. Nonetheless, it didn’t take into account the 1,200 jobs the venue has created nor the US$5 million the tribe will pay over the next three years to community programs.
