Indiana Senate narrowly approves casino relocation bill
The Indiana Senate has advanced HB 1038, a bill that would allow the relocation of the Ohio County casino licence to the Fort Wayne area. After making major amendments, senators narrowly adopted the plan by a vote of 26–22, giving legislators just a few days to work out their differences before the legislative term expires. With the deadline approaching, the House and Senate must quickly reach an agreement or risk the bill stalling.
Key amendments
The Indiana Senate’s version of HB 1038 introduced several major changes to the House bill on relocating the Ohio County casino licence. The relocation cost was increased by lawmakers from $50 million to $150 million, with $50 million put aside for Rising Sun to lessen the effects of losing its casino. Additionally, they made the licence available to all casino operators in the United States, with the Indiana Gaming Commission supervising the evaluation procedure.
Another change was removing the requirement for a local voter referendum, meaning residents in the affected counties would not directly decide on the casino’s relocation. These amendments reshaped the bill and added new layers of debate as it moved forward.
Eligible counties
The Senate’s version of HB 1038 narrowed the list of counties eligible for the Ohio County casino licence relocation. Allen County, home to Fort Wayne, was included, reflecting interest in bringing a casino to Indiana’s second-largest city and the only region in the state without a commercial or tribal casino.
DeKalb and Steuben counties were also added, both bordering Michigan and Ohio, which lawmakers see as potential draws for out-of-state visitors. However, Wayne County, which appeared in the House version, was removed in the Senate’s changes. That adjustment could complicate negotiations as lawmakers work to reconcile the two versions of the bill.
Debate on Senate floor
Legislators from the Fort Wayne area were sharply divided during the Indiana Senate debate over HB 1038. Sen. Justin Busch maintained that there would be no preferred operator and that the Gaming Commission would oversee the procedure, which would be transparent and equitable. Citing research that suggested Indianapolis may provide significantly more tax income than Fort Wayne, Senator Liz Brown had reservations regarding the placement.
Sen. Tyler Johnson highlighted opposition from his constituents, describing a town hall where residents strongly rejected the idea of a casino in their community. Critics of the bill also pointed to the removal of the local referendum requirement, saying it sidelines public input in a decision with significant local impact.
Indianapolis casino debate
The Senate debate over HB 1038 also touched on whether Indianapolis might be a better location for a new casino. A study by Spectrum Gaming Group projected that Indianapolis could generate significantly higher tax revenue than Fort Wayne, given its larger population.
However, lawmakers noted that Indianapolis is already close to several existing casinos, raising concerns about market saturation. Political hesitation around adding another casino in the capital also played a role, making Fort Wayne appear to lawmakers as a more viable option despite the lower projected revenue.
Rising Star Casino’s struggles
The relocation of the Ohio County casino licence would mean closing Rising Star Casino Resort in Rising Sun, which has struggled in a crowded market. Southeastern Indiana already hosts two riverboat casinos, while nearby Cincinnati and Northern Kentucky add several more, leaving Rising Star with limited room to compete.
In the first half of the fiscal year, the casino generated just $1.1 million in tax revenue, less than half a percent of the $283.5 million collected statewide from commercial gaming facilities. Rising Star’s owner, Full House Resorts, is considered a likely applicant for the relocated licence, given its existing ties and the compensation provisions outlined in the bill if another operator is chosen.
Financial requirements
The Senate’s version of HB 1038 places significant financial requirements on any operator seeking to relocate the Ohio County casino licence. The relocation fee was raised to $150 million, with $50 million directed to Rising Sun and additional funds set aside for community payments and state revenue.
Beyond that, the winning bidder must commit at least $500 million to the project, making it a large-scale resort rather than a smaller facility. For comparison, the Terre Haute Casino Resort cost $290 million to build, meaning the Fort Wayne-area proposal would require nearly double that investment.
Political uncertainty ahead
Regarding HB 1038, the House and Senate are still split on issues such as the licence fee, whether counties should be eligible, and whether a local referendum should be necessary. The adjournment, which is scheduled for Friday, February 27, 2026, requires that these disagreements be settled. Negotiations will proceed swiftly in the remaining period, but even one unresolved problem might prevent the bill from moving forward this session.
Stay ahead of iGaming’s biggest stories with SiGMA’s Top 10 News countdown. The world’s biggest iGaming community brings you weekly insights and subscriber-only offers. Join HERE today.
