Legislation permitting the establishment of a new casino in Indiana has overcome a significant legislative step, with House members casting a 67-30 vote on House Bill 1038 this Monday. This bill aims to provide an opportunity for four counties to host Rising Star Casino, which is currently situated in the Ohio River city of Rising Sun.
Following the approval of the bill, four counties in Northeast Indiana are now in a position to potentially welcome the relocated casino, a decision backed by a state study that positioned this region right after Indianapolis, surpassing other markets.
Eligible counties for the casino move include Allen, DeKalb, and Steuben in the Fort Wayne vicinity, along with Wayne County in Eastern Indiana. The bill now heads to the Senate and requires approval by the end of February for it to be enacted. There was limited discussion on this final legislation of the day.
The legislative move aligns with a study released by the Indiana Gaming Commission in October, which assessed different locations for relocating a casino license. The findings highlighted the Indianapolis area as the preferred location, with Northeast Indiana as the subsequent option.
The study indicated that establishing a casino in the Indianapolis region would generate more tax revenue for the state, but it would negatively impact the revenues of two neighboring casinos in Shelbyville and Anderson, both of which support the horse racing industry. In contrast, the Fort Wayne area is regarded as a less saturated market, which would effectively channel competition from casinos in Ohio and Michigan.
A previous attempt to move the casino was unsuccessful in the Senate late last year. In December, a Senate committee endorsed a proposal that would permit Full House Resorts to transfer Rising Star Casino to Allen County; however, it did not proceed to a full Senate vote before the deadline.
Republican Senate President Pro Tempore Rodric Bray noted last week that there is support for allowing a relocation option.
“There appears to be an increasing amount of support for the concept of relocating a casino to Northeast Indiana,” Bray stated. “The study clearly indicates it would be a lucrative option in that area. Hence, I remain optimistic about the progress of this bill.”
House Bill 1038 mandates that the chosen operator for the relocated casino invest a minimum of $500 million in the project within five years of its launch.
Currently, the original Rising Star Casino produces the least casino tax revenue across Indiana. Revenue has dropped since the establishment of casinos in Ohio and the broadening of gambling options in Kentucky.
Although Full House has sought authorization to transfer the Rising Star Casino for several years, the revised bill allows all operators of Indiana’s 13 state-licensed casinos to submit proposals for the transferred license.
Under the provisions of the bill, the Indiana Gaming Commission will appoint a new casino operator by April 15, 2027. All proposals must obtain approval from the city mayor and a board of county commissioners. Counties may also hold a referendum to gauge local support, though this is not a requirement under the bill.
The successful operator would be required to pay a $50 million fee to the state over a period of five years. Should Full House fail to secure the transferred license, the winning operator must pay the fair market value of the Rising Star Casino, as determined by an independent consultant appointed by the gaming commission.
Additionally, the bill stipulates that the new casino operator must compensate the city of Rising Sun and Ohio County a total of $30 million to mitigate the loss of casino tax revenue.
Local officials have expressed that the proposed compensation might be insufficient compared to recent collections, pointing out that both the city and county historically average about $5 million annually in casino tax revenue. They have requested an amendment allowing Rising Sun and Ohio County to receive a continuous percentage of revenue from the relocated casino.