Indiana House Approves Casino Relocation Proposal

Indiana lawmakers moved a long running casino relocation debate closer to resolution after a decisive House vote. The proposal would allow a casino license transfer away from the Ohio River and toward a less saturated market in the northeast part of the state.

The measure now shifts attention to the Senate, where timing and regional politics will determine whether the effort finally clears the legislature.

Good to Know

• House Bill 1038 passed the Indiana House by a 67 to 30 vote
• Four counties could compete for a relocated casino license
• The new casino would require at least $500 million in investment

Members of the Indiana House approved House Bill 1038 on Monday, voting 67 to 30 in favor of the proposal. The legislation would allow Rising Star Casino, currently operating in the city of Rising Sun along the Ohio River, to relocate to a new county pending regulatory approval.

Eligible locations include Allen, DeKalb, and Steuben counties near Fort Wayne, along with Wayne County in eastern Indiana. Lawmakers shaped the bill using findings from a state commissioned study that evaluated casino relocation options across Indiana.

That study, released in October by the Indiana Gaming Commission, ranked the Indianapolis region as the top revenue producing option but placed Northeast Indiana second. Analysts described the Fort Wayne area as a less crowded market, with most competitive pressure expected to fall on casinos in Ohio and Michigan rather than within Indiana.

Revenue tradeoffs played a central role in the analysis. A casino near Indianapolis would generate higher overall tax revenue but would reduce earnings at two nearby racinos in Shelbyville and Anderson, both of which operate horse tracks that support the horse racing industry.

The relocation question has surfaced before. In December, a Senate committee approved legislation that would have allowed Full House Resorts to move Rising Star Casino to Allen County. That measure stalled before reaching a full Senate vote.

Support appears broader under the revised bill. Rodric Bray said lawmakers increasingly favor a relocation option. Bray told reporters:

“There continues to be support, I think, building for the idea of some option to move a casino up into northeast Indiana. The study obviously shows that it would be profitable up there. So, I look optimistically at the movement of that bill.”

House Bill 1038 expands eligibility beyond a single operator. All 13 state regulated casino operators in Indiana could submit proposals for the transferred license. The gaming commission would select a winning bid by April 15, 2027.

Any proposal would require approval from a city mayor and a county board of commissioners. Counties may also choose to hold a voter referendum, though the bill does not mandate one.

Financial commitments form a core part of the plan. The selected operator would need to invest at least $500 million in the casino project within five years of opening. The operator would also pay a $50 million license fee to the state over five years.

If Full House does not secure the license, the winning bidder would pay the fair market value of Rising Star Casino, as determined by an independent consultant hired by the gaming commission.

Rising Star Casino currently generates the lowest casino tax revenue in Indiana. Performance declined following the opening of new casinos in Ohio and expanded gambling options in Kentucky.

To offset the economic impact on the original host community, the bill requires a total payment of $30 million to the city of Rising Sun and Ohio County. Local officials argue that amount would not replace lost revenue, citing average annual casino tax collections of roughly $5 million. City and county leaders have asked lawmakers to consider a structure that would provide an ongoing share of revenue from the relocated casino.

The bill now heads to the Senate, where approval must occur before the end of February for the proposal to become law. Debate on the House floor remained limited as lawmakers closed out the session day.

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