News From Terre Haute, Indiana

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May 19, 2006

Small town hits it big with casino gambling

Hooked on Gambling: First of three-part series

ELIZABETH, IN — Becky Lu’s restaurant stands out along State Highway 11 on the outskirts of tiny Elizabeth, Ind., and business is brisk from the nearby Caesars Indiana riverboat casino.

Becky Eckart, mother of three, opened the eatery four years ago after Harrison County voters approved the casino. She features pizza and subs and the only fish dinner in town on Fridays.

“Casears has done a lot for us,” said Eckart. "We've got a new fire truck, and all our roads are blacktop now."

The town of 137 people also got its first stop sign when the casino built a 503-room hotel with gold-colored windows.

Largess from riverboat gambling, legal in Indiana since 1993, has meant big money for towns like Elizabeth along the Ohio River. It has also meant 2,138 local jobs at the casino for people from the region.

Caesars Indiana turns over a quarter of its wagering and admission taxes to Harrison County - a formula that yielded $25.2 million last year for the county and its municipalities.

In addition, the casino pays property taxes on its four-floor boat and related buildings, pumping another $4.05 million annually into the county treasury.

Two community foundations in the region, located across the Ohio River from Louisville, Ky., also receive generous donations from Caesars Indiana, boosting the casino's image as a community-conscious business.

Residents of Harrison County say they measure the casino’s success by the public good it helps finance. That includes a new hospital, police and ambulance services, paved roads and a new sewer system.

None of this, Harrison County President Gary Davis says, would have been possible without riverboat gambling.

“Most of what I’ve got to say about the impact of the riverboat casino is positive,” said Davis, a retired accountant.

Luanne Maguire, manager of the Farmers State Bank branch in Elizabeth, worries some local folks are gambling beyond their means, but she isn't making a big fuss about it.

“I see people spending money, you know, really that they shouldn’t,” said Maguire. "Even if they win big, say $10,000, they may be real happy about it. But it's just a drop in the bucket from (what) they've already invested."

For Charles Massie, a retired plant engineer for Kroger grocery, the benefits of gambling outweigh the negatives. Besides, he says, people are going to gamble regardless of the ups and downs.

“I’m 75 years old. I’ve lived in the west in Vegas, and been a lot of places,” said Massie. “I don’t have a problem with it. It’s real growth for this community – paved roads, beautiful paved roads, everywhere. Every small town gets some money out of it.”

Denise Jewell is a CNHI News Service Elite Reporting Program fellow. She writes for the Niagara Gazette in Niagara Falls, N.Y.

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