The Indiana Senate voted 26-22 Tuesday to approve House Bill 1038, authorizing a new casino in northeastern Indiana without a local referendum.

The measure would allow Allen, DeKalb, and Steuben counties to compete for the state’s 14th casino license, with the winning company required to invest at least $500 million, the Indiana Capital Chronicle reported.

Supporters, including local officials and business leaders, said the casino will boost the regional economy with hotels, dining, and entertainment. Opponents and some senators criticized the bill for bypassing a public vote, a process required for all previous Indiana casinos.

Sen. Tyler Johnson, R-Leo, pointed to an overflow crowd at a town hall meeting he held last year to express opposition to the project. He criticized the decision to omit a local vote. “We took it out because I think we knew what the results of that would be,” he said.

Sen. Liz Brown, R-Fort Wayne, also expressed frustration that local residents would not have a direct voice. “We’ve heard talk, ‘Well, there might be too much opposition on the other side, and it would fail,’” she said. “Oh, my goodness. What a horrible idea that the people don’t get to decide.”

The bill now heads to the House, which earlier this month passed a different version that included provisions to potentially relocate Indiana’s lowest-performing casino in Rising Sun without creating a new license. The Senate’s version would leave the current Rising Star casino in place and remove Wayne County from consideration for the new casino.

A compromise between the House and Senate must be reached by the end of this week before the legislative session adjourns.

Bill sponsor Sen. Justin Busch, R-Fort Wayne, said the project will be “a transformative, long-term investment” in northeast Indiana. “This will not just be a gaming floor, but a true destination development, with hotel rooms, dining, and entertainment amenities,” he added.

The vote split across party lines, with 22 Republicans and four Democrats in favor and 17 Republicans and five Democrats opposed.

A state-commission study last year suggested that downtown Indianapolis would be the most profitable site for a new casino. Despite this, the idea has not gained traction among legislators, who cited concerns about potential effects on existing casinos in Shelbyville and Anderson

Sen. Aaron Freeman, R-Indianapolis, questioned why the city’s downtown was not under consideration, arguing that a casino could bolster tourism and state revenue. “If we want to maintain that, we’d better keep attracting people to come to Indianapolis, because Nashville is not going away. Charlotte’s not going away, name your city in the Midwest is not going away,” Freeman said.

“In case you didn’t know, we don’t have a beach or mountains to go to,” he added. “So we’d better be trying to attract people here — and we don’t.”