Indiana's gaming industry is one of the best in the country, paying hundreds of millions of dollars back to the state each year in taxes and fees from casino operators.
Only Nevada and New Jersey generate more gambling cash than Indiana's approximately $500 million a year.
But not all of the gambling in Indiana happens on the riverboats. Some of it is going on illegally, behind closed doors, Call 6's Rafael Sanchez reported.
Gambling operations can be found in convenience stores, truck stops and taverns across the state, Sanchez reported.
The machines may say "For Amusement Only," but Sanchez learned that once you hit a jackpot, you can often cash out -- which is illegal in Indiana.
Call 6 took a camera inside a suspected gambling operation in west Bloomington operation and found between 10 to 15 slot machines.
Sanchez attempted to speak with an unidentified woman.
Sanchez: Hi, I'm with Channel 6. Can you tell me about your business here?
Woman: No. come on out!
Sanchez: What are you running here? Is this a casino?
Woman: Come on out!
Sanchez: Is this a legal place of business or ... ?
Woman: Come on out!
Sanchez: Why can't you show us the inside?
Woman: Come on out!
Sanchez: Why can't you show us the inside? Can you tell us about the gambling? Can you tell us about the gambling machines?
Woman: Go out the door!
Sanchez: Can you tell us what's going on?
When Monroe County Prosecutor Carl Salzmann was asked to comment on the findings he said it would be "hypocritical" for him to prosecute these businesses when the state is the biggest promoter of gambling, Sanchez reported.
Benton County Prosecutor Judson Barce took an aggressive stand on illegal gambling three years ago.
"It's a money maker. It's completely unregulated cash income," Barce said.
After receiving a complaint, Indiana State Police raided 19 bars and restaurants in three counties that resulted in arrests, convictions and fines, Sanchez reported.
"It's illegal, a person complained about it, the complaint turned out to be true," Barce said. "It turned out to be a pretty widespread problem."
Police said the operations generated anywhere from as little as $40 a day to $2,000 a day per machine.
"It really surprised me that when we started hearing statement from the bar owners as to how much money they were making, how much tax revenue was being lost from the state, how many people were coming in here that, I'm sure, were delinquent in bills, delinquent in child support, yet they were pumping money into them," ISP Detective Hunter Reese said.
The machines can be operated legally if the owners don't cash out patrons. With unregulated machines, patrons have no assurances that they even have a chance to win, since the frequency of winners can be controlled, Sanchez reported.
Former Sullivan County Sheriff and now state Sen. John Waterman is sponsoring a bill that would regulate the slot machines.
"They're estimating $200 million a year that could be brought in off these machines if they would legalize them," Waterman said.
"We've turned a blind eye to it now for two decades, and the state's lost a tremendous amount of money doing that."
Sanchez reported that there was little chance Waterman's bill will pass this session. It's been introduced before and failed.
!
GeneralPete@Hotmail.Com
Only Nevada and New Jersey generate more gambling cash than Indiana's approximately $500 million a year.
But not all of the gambling in Indiana happens on the riverboats. Some of it is going on illegally, behind closed doors, Call 6's Rafael Sanchez reported.
Gambling operations can be found in convenience stores, truck stops and taverns across the state, Sanchez reported.
The machines may say "For Amusement Only," but Sanchez learned that once you hit a jackpot, you can often cash out -- which is illegal in Indiana.
Call 6 took a camera inside a suspected gambling operation in west Bloomington operation and found between 10 to 15 slot machines.
Sanchez attempted to speak with an unidentified woman.
Sanchez: Hi, I'm with Channel 6. Can you tell me about your business here?
Woman: No. come on out!
Sanchez: What are you running here? Is this a casino?
Woman: Come on out!
Sanchez: Is this a legal place of business or ... ?
Woman: Come on out!
Sanchez: Why can't you show us the inside?
Woman: Come on out!
Sanchez: Why can't you show us the inside? Can you tell us about the gambling? Can you tell us about the gambling machines?
Woman: Go out the door!
Sanchez: Can you tell us what's going on?
When Monroe County Prosecutor Carl Salzmann was asked to comment on the findings he said it would be "hypocritical" for him to prosecute these businesses when the state is the biggest promoter of gambling, Sanchez reported.
Benton County Prosecutor Judson Barce took an aggressive stand on illegal gambling three years ago.
"It's a money maker. It's completely unregulated cash income," Barce said.
After receiving a complaint, Indiana State Police raided 19 bars and restaurants in three counties that resulted in arrests, convictions and fines, Sanchez reported.
"It's illegal, a person complained about it, the complaint turned out to be true," Barce said. "It turned out to be a pretty widespread problem."
Police said the operations generated anywhere from as little as $40 a day to $2,000 a day per machine.
"It really surprised me that when we started hearing statement from the bar owners as to how much money they were making, how much tax revenue was being lost from the state, how many people were coming in here that, I'm sure, were delinquent in bills, delinquent in child support, yet they were pumping money into them," ISP Detective Hunter Reese said.
The machines can be operated legally if the owners don't cash out patrons. With unregulated machines, patrons have no assurances that they even have a chance to win, since the frequency of winners can be controlled, Sanchez reported.
Former Sullivan County Sheriff and now state Sen. John Waterman is sponsoring a bill that would regulate the slot machines.
"They're estimating $200 million a year that could be brought in off these machines if they would legalize them," Waterman said.
"We've turned a blind eye to it now for two decades, and the state's lost a tremendous amount of money doing that."
Sanchez reported that there was little chance Waterman's bill will pass this session. It's been introduced before and failed.
!
GeneralPete@Hotmail.Com
