The House approved this week a bill that, according to its supporters, will help the racing industry and give to the State millions of dollars in taxes. This new legislation would allow up to 5,000 slot machines at Indiana horse racing tracks.

The bill passed 54-39 and it requires the state’s two racetracks to pay a $100 million fee to install the machines. The money obtained with the machines would be taxed at a rate of 37.5 percent, of which a 35 percent would be given to Indiana counties without racetracks or riverboat casinos.

A five percent of the tax revenue from Madison County’s racetrack would be distributed to county and local governments there and five percent of the revenue from Shelby County’s racetrack would go to local governments. The rest of the tax revenue would be deposited in the state’s main account.

As of 2009, the horse racing industry would renounce to the annual $27 million subsidies it currently receives from riverboat gambling revenue. The money would be channeled into a healthcare fund that is not specified in the legislation.

The bill now moves to the senate to be considered.