Indiana § 4-35-8-5 - Deductions for qualified wagering

§ 4-35-8-5. Deductions for qualified wagering

Sec. 5. (a) This section applies to adjusted gross receipts from wagering on gambling games that occurs after the effective date of this section, as added by SEA 528-2013.

(b) As used in this section, "qualified wagering" refers to wagers made by patrons using noncashable vouchers, coupons, electronic credits, or electronic promotions provided by the licensee.

(c) Subject to subsection (d), a licensee may at any time during the state fiscal year deduct from the adjusted gross receipts reported by the licensee the adjusted gross receipts attributable to qualified wagering. A licensee must take a deduction under this section on a form and in the manner prescribed by the department.

(d) A licensee may not deduct more than the following amounts in a particular state fiscal year:

(1) Two million five hundred thousand dollars ($2,500,000) in a state fiscal year ending before July 1, 2013.

(2) Five million dollars ($5,000,000) in a state fiscal year beginning after June 30, 2013, and ending before July 1, 2015.

(3) Seven million dollars ($7,000,000) in a state fiscal year beginning after June 30, 2015, and ending before July 1, 2021.

(4) Nine million dollars ($9,000,000) in a state fiscal year beginning after June 30, 2021.

(e) Deductions under this section also apply to a licensee's adjusted gross receipts for purposes of the following statutes:

(1) IC 4-35-7-12.

(2) IC 4-35-8.5.

(3) IC 4-35-8.9.

(f) A licensee may for a state fiscal year assign all or part of the amount of the deduction under this section that is not claimed by the licensee for the state fiscal year to another licensee, a licensed owner as defined by IC 4-33-2-13, or an operating agent as defined by IC 4-33-2-14.5. An assignment under this subsection must be in writing and both the licensee assigning the deduction and the licensee, licensed owner as defined by IC 4-33-2-13, or operating agent as defined by IC 4-33-2-14.5, to which the deduction is assigned shall report the assignment to the commission and to the department. The maximum amount that may be assigned under this subsection by a licensee for a state fiscal year is equal to the result of:

(1) seven million dollars ($7,000,000); minus

(2) the amount deducted under this subsection by the licensee for the state fiscal year.

As added by P.L.229-2013, SEC.36. Amended by P.L.255-2015, SEC.44; P.L.293-2019, SEC.39.

IC 4-35-8.3Chapter 8.3. Historic Hotel District Community Support Fee

4-35-8.3-1Application 4-35-8.3-2Historic hotel district community support fee 4-35-8.3-3Deposit of fee 4-35-8.3-4Distribution of fees 4-35-8.3-5Distributions to political subdivisions

IC 4-35-8.3-1Application Sec. 1. This chapter applies to a state fiscal year beginning after June 30, 2015.

As added by P.L.255-2015, SEC.45.

IC 4-35-8.3-2Historic hotel district community support fee Sec. 2. Before October 1 of each year, a licensee shall pay to the department an annual historic hotel district community support fee equal to:

(1) one million two hundred fifty thousand dollars ($1,250,000); multiplied by

(2) the number of gambling game facilities operated by the licensee under this article.

As added by P.L.255-2015, SEC.45.

IC 4-35-8.3-3Deposit of fee Sec. 3. The department shall deposit the fees received under section 2 of this chapter in the state general fund.

As added by P.L.255-2015, SEC.45.

IC 4-35-8.3-4Distribution of fees Sec. 4. Before December 1 of each year, the state comptroller shall distribute an amount equal to the fees deposited in that year under section 3 of this chapter to communities and schools located near a historic hotel district and the Indiana economic development corporation as follows:

(1) Twenty-two and four-tenths percent (22.4%) to be paid as follows:

(A) Fifty percent (50%) to the fiscal officer of the town of French Lick.

(B) Fifty percent (50%) to the fiscal officer of the town of West Baden Springs.

(2) Fourteen and eight-tenths percent (14.8%) to the county treasurer of Orange County for distribution among the school corporations in the county. The governing bodies for the school corporations in the county shall provide a formula for the distribution of the money received under this subdivision among the school corporations by joint resolution adopted by the governing body of each of the school corporations in the county. Money received by a school corporation under this subdivision must be used to improve the educational attainment of students enrolled in the school corporation receiving the money. Not later than the first regular meeting in the school year of a governing body of a school corporation receiving a distribution under this subdivision, the superintendent of the school corporation shall submit to the governing body a report describing the purposes for which the receipts under this subdivision were used and the improvements in educational attainment realized through the use of the money. The report is a public record.

(3) Thirteen and one-tenth percent (13.1%) to the county treasurer of Orange County.

(4) Five and three-tenths percent (5.3%) to the county treasurer of Dubois County for appropriation by the county fiscal body after receiving a recommendation from the county executive. The county fiscal body shall provide for the distribution of the money received under this subdivision to one (1) or more taxing units (as defined in IC 6-1.1-1-21) in the county under a formula established by the county fiscal body after receiving a recommendation from the county executive.

(5) Five and three-tenths percent (5.3%) to the county treasurer of Crawford County for appropriation by the county fiscal body. The county fiscal body shall provide for the distribution of the money received under this subdivision to one (1) or more taxing units (as defined in IC 6-1.1-1-21) in the county under a formula established by the county fiscal body after receiving a recommendation from the county executive.

(6) Six and thirty-five hundredths percent (6.35%) to the fiscal officer of the town of Paoli.

(7) Six and thirty-five hundredths percent (6.35%) to the fiscal officer of the town of Orleans.

(8) Twenty-six and four-tenths percent (26.4%) to the Indiana economic development corporation for transfer as follows:

(A) Ten percent (10%) of the amount transferred under this subdivision in each calendar year shall be transferred to the South Central Indiana Regional Economic Development Corporation or a successor entity or partnership for economic development for the purpose of recruiting new business to Orange County and promoting the retention and expansion of existing businesses in Orange County.

(B) The remainder of the amount transferred under this subdivision in each calendar year shall be transferred to Radius Indiana or a successor regional entity or partnership for the development and implementation of a regional economic development strategy to assist the residents of Orange County and the counties contiguous to Orange County in improving their quality of life and to help promote successful and sustainable communities.

However if the amount distributed under IC 4-33-13-5(b)(3)(H) to the Orange County development commission is insufficient to meet the obligations described in IC 4-33-13-5(b)(3)(H), an amount sufficient to meet current obligations to retire or refinance indebtedness or leases for which tax revenues under IC 4-33-13-5 were pledged before January 1, 2015, by the Orange County development commission shall be paid to the Orange County development commission before making distributions to the South Central Indiana Regional Economic Development Corporation and Radius Indiana or their successor entities or partnerships. The amount paid to the Orange County development commission reduces the amount payable to Radius Indiana or its successor entity or partnership.

As added by P.L.255-2015, SEC.45. Amended by P.L.149-2016, SEC.13; P.L.268-2017, SEC.36; P.L.293-2019, SEC.40; P.L.9-2024, SEC.111.

IC 4-35-8.3-5Distributions to political subdivisions Sec. 5. (a) Money distributed to a political subdivision under section 4 of this chapter:

(1) must be paid to the fiscal officer of the political subdivision and may be deposited in the political subdivision's general fund (in the case of a school corporation, the school corporation may deposit the money into either the education fund (IC 20-40-2) or the operations fund (IC 20-40-18)) or riverboat fund established under IC 36-1-8-9, or both;

(2) may not be used to reduce the maximum levy under IC 6-1.1-18.5 of a county, city, or town or the maximum tax rate of a school corporation, but, except as provided in section 4(2) of this chapter, may be used at the discretion of the political subdivision to reduce the property tax levy of the county, city, or town for a particular year;

(3) except as provided in section 4(2) of this chapter, may be used for any legal or corporate purpose of the political subdivision, including the pledge of money to bonds, leases, or other obligations under IC 5-1-14-4; and

(4) is considered miscellaneous revenue.

(b) Money distributed under section 4(2) of this chapter must be used for the purposes specified in section 4(2) of this chapter.

As added by P.L.255-2015, SEC.45. Amended by P.L.149-2016, SEC.14; P.L.238-2019, SEC.3.

IC 4-35-8.5Chapter 8.5. County Slot Machine Wagering Fee

4-35-8.5-0.5Application 4-35-8.5-1County gambling game wagering fee imposed 4-35-8.5-2Distribution of county gambling game wagering fees 4-35-8.5-3Allocation of county gambling game wagering fees 4-35-8.5-4Use of county slot machine wagering fees

IC 4-35-8.5-0.5Application Sec. 0.5. This chapter does not apply to sports wagering conducted under IC 4-38.

As added by P.L.293-2019, SEC.41.

IC 4-35-8.5-1County gambling game wagering fee imposed Sec. 1. (a) Before the fifteenth day of each month, a licensee that offers gambling game wagering under this article shall pay to the commission a county gambling game wagering fee equal to three percent (3%) of the adjusted gross receipts received from gambling game wagering during the previous month at the licensee's racetrack. However, a licensee is not required to pay more than eight million dollars ($8,000,000) of county gambling game wagering fees under this section in any state fiscal year.

(b) The commission shall deposit the county gambling game wagering fee received by the commission into a separate account within the state general fund.

As added by P.L.233-2007, SEC.21. Amended by P.L.255-2015, SEC.46.

IC 4-35-8.5-2Distribution of county gambling game wagering fees Sec. 2. On or before the fifteenth day of each month, the treasurer of state shall distribute any county gambling game wagering fees received from a licensee during the previous month to the county auditor of the county in which the licensee's racetrack is located.

As added by P.L.233-2007, SEC.21. Amended by P.L.255-2015, SEC.47; P.L.137-2022, SEC.9.

IC 4-35-8.5-3Allocation of county gambling game wagering fees Sec. 3. The auditor of each county receiving a distribution of county gambling game wagering fees under section 2 of this chapter shall distribute the county gambling game wagering fees as follows:

(1) To each city located in the county according to the ratio the city's population bears to the total population of the county.

(2) To each town located in the county according to the ratio the town's population bears to the total population of the county.

(3) After the distributions required by subdivisions (1) and (2) are made, the remainder shall be retained by the county.

As added by P.L.233-2007, SEC.21. Amended by P.L.255-2015, SEC.48.

IC 4-35-8.5-4Use of county slot machine wagering fees Sec. 4. (a) As used in this section, "political subdivision" means a county, city, or town.

(b) Money paid to a political subdivision under this chapter:

(1) must be paid to the fiscal officer of the political subdivision and must be deposited in the political subdivision's general fund;

(2) may not be used to reduce the political subdivision's maximum levy under IC 6-1.1 but may be used at the discretion of the political subdivision to reduce the property tax levy of the political subdivision for a particular year;

(3) may be used for any purpose specified in this chapter or for any other legal or corporate purpose of the political subdivision, including the pledge of money to bonds, leases, or other obligations under IC 5-1-14-4; and

(4) is considered miscellaneous revenue.

As added by P.L.233-2007, SEC.21.

IC 4-35-8.7Chapter 8.7. Gaming Integrity Fee

4-35-8.7-1"Fund" 4-35-8.7-2Gaming integrity fee imposed 4-35-8.7-3Gaming integrity fund; uses of money in the fund; appropriation

IC 4-35-8.7-1"Fund" Sec. 1. As used in this chapter, "fund" means the gaming integrity fund established by section 3 of this chapter.

As added by P.L.233-2007, SEC.21.

IC 4-35-8.7-2Gaming integrity fee imposed Sec. 2. A licensee that offers wagering on gambling games under this article shall annually pay to the Indiana horse racing commission a gaming integrity fee equal to two hundred fifty thousand dollars ($250,000) for each racetrack at which the licensee offers wagering on gambling games. The Indiana horse racing commission shall deposit gaming integrity fees in the fund.

As added by P.L.233-2007, SEC.21. Amended by P.L.142-2009, SEC.26; P.L.255-2015, SEC.49.

IC 4-35-8.7-3Gaming integrity fund; uses of money in the fund; appropriation Sec. 3. (a) The gaming integrity fund is established.

(b) The fund shall be administered by the Indiana horse racing commission.

(c) The fund consists of gaming integrity fees deposited in the fund under this chapter and money distributed to the fund under IC 4-35-7-12.5 and IC 4-35-7-15. For each licensee, the Indiana horse racing commission shall annually transfer:

(1) seventy-five thousand dollars ($75,000); multiplied by

(2) the number of racetracks operated by the licensee;

from the fund to the Indiana state board of animal health to be used by the state board to pay the costs associated with equine health and equine care programs under IC 15-17.

(d) The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public funds may be invested.

(e) Money in the fund at the end of a state fiscal year does not revert to the state general fund.

(f) Money in the fund may be used by the Indiana horse racing commission only for the following purposes:

(1) To pay the cost of taking and analyzing equine biological samples under IC 4-31-12-6(b) or another law or rule and the cost of any supplies related to the taking or analysis of biological samples.

(2) To pay dues to the Drug Testing Standards and Practices (DTSP) Committee of the Association of Racing Commissioners International.

(3) To provide grants for research for the advancement of equine drug testing. Grants under this subdivision must be approved by the Drug Testing Standards and Practices (DTSP) Committee of the Association of Racing Commissioners International or by the Racing Mediation and Testing Consortium.

(4) To pay the costs of post-mortem examinations under IC 4-31-12-10.

(5) To pay other costs incurred by the commission to maintain the integrity of pari-mutuel racing.

(g) Money in the fund is continuously appropriated to the Indiana horse racing commission to carry out the purposes described in subsection (f).

As added by P.L.233-2007, SEC.21. Amended by P.L.142-2009, SEC.27; P.L.229-2011, SEC.61; P.L.213-2015, SEC.54; P.L.149-2016, SEC.15; P.L.217-2017, SEC.43; P.L.268-2017, SEC.37; P.L.86-2018, SEC.10; P.L.168-2019, SEC.22.

IC 4-35-8.8Chapter 8.8. Problem Gambling Fees

4-35-8.8-1"Division" 4-35-8.8-2Problem gambling fee imposed 4-35-8.8-3Use of problem gambling fees 4-35-8.8-4Problem gambling fees are in addition to riverboat admissions taxes used by the division for the prevention and treatment of compulsive gambling 4-35-8.8-5Problem gambling program fund; purpose of the fund

IC 4-35-8.8-1"Division" Sec. 1. As used in this chapter, "division" refers to the division of mental health and addiction.

As added by P.L.233-2007, SEC.21.

IC 4-35-8.8-2Problem gambling fee imposed Sec. 2. (a) A licensee that offers slot machine wagering at racetracks under this article shall annually pay to the commission a problem gambling fee equal to five hundred thousand dollars ($500,000) for each racetrack at which the licensee offers slot machine wagering. The commission shall annually retain two hundred fifty thousand dollars ($250,000) from the total amount paid under this section for the commission's own efforts at preventing and treating compulsive gambling. The commission shall transfer the remaining seven hundred fifty thousand dollars ($750,000) received each year to the division.

(b) The amount retained by the commission under subsection (a) shall be deposited in the problem gambling program fund established by section 5 of this chapter.

As added by P.L.233-2007, SEC.21. Amended by P.L.255-2015, SEC.50; P.L.108-2019, SEC.80.

IC 4-35-8.8-3Use of problem gambling fees Sec. 3. The division may use problem gambling fees received by the division under this chapter only for the prevention and treatment of compulsive gambling that is related to gambling allowed under this article and IC 4-33.

As added by P.L.233-2007, SEC.21. Amended by P.L.255-2015, SEC.51.

IC 4-35-8.8-4Problem gambling fees are in addition to riverboat admissions taxes used by the division for the prevention and treatment of compulsive gambling Sec. 4. The problem gambling fees used by the division under this chapter for the prevention and treatment of compulsive gambling are in addition to any admissions tax revenue allocated by the division under IC 4-33-12-6 for the prevention and treatment of compulsive gambling.

As added by P.L.233-2007, SEC.21.

IC 4-35-8.8-5Problem gambling program fund; purpose of the fund Sec. 5. (a) The problem gambling program fund is established. The fund shall be administered by the commission.

(b) The fund consists of the fees collected and retained by the commission under section 2 of this chapter.

(c) Money in the fund may be used only for the purpose of the commission's own efforts at preventing and treating compulsive gambling.

(d) Money in the fund is continuously appropriated for the purposes of the fund.

(e) Money in the fund at the end of a state fiscal year does not revert to the state general fund.

As added by P.L.108-2019, SEC.81.

IC 4-35-8.9Chapter 8.9. Supplemental Fees

4-35-8.9-1Application of chapter 4-35-8.9-2Supplemental fees imposed 4-35-8.9-3Distribution of supplemental fees

IC 4-35-8.9-1Application of chapter Sec. 1. This chapter applies only to state fiscal years beginning after June 30, 2007, and ending before July 1, 2012.

As added by P.L.233-2007, SEC.21.

IC 4-35-8.9-2Supplemental fees imposed Sec. 2. (a) Before the fifteenth day of each month, a licensee that offers slot machine wagering under this article shall pay to the commission a supplemental fee equal to one percent (1%) of the adjusted gross receipts received by the licensee from slot machine wagering.

(b) The commission shall deposit the supplemental fees into a separate account within the state general fund.

As added by P.L.233-2007, SEC.21.

IC 4-35-8.9-3Distribution of supplemental fees Sec. 3. Before the fifteenth day of each month, the treasurer of state shall distribute supplemental fees received under this chapter during the previous month in equal shares to each licensed owner or operating agent that commences gambling operations with respect to:

(1) an initial owner's license issued under IC 4-33-6; or

(2) the initial term of an operating agent contract entered into under IC 4-33-6.5;

after June 30, 2006.

As added by P.L.233-2007, SEC.21.

IC 4-35-9Chapter 9. Penalties

4-35-9-1Application of chapter 4-35-9-2Aiding, inducing, or causing an underage person to enter; Class A misdemeanor 4-35-9-3Repealed 4-35-9-3.5Underage entry 4-35-9-4Other Class A misdemeanors 4-35-9-5Level 6 felonies 4-35-9-6Persons prohibited from wagering