Skip to content

Indiana lawmakers approve casino relocation bill

Sudhanshu Ranjan
Written by Sudhanshu Ranjan

House Bill 1038, which permits the relocation of an existing casino licence to another area of the state, was approved by lawmakers 67–30 on the last day of House legislation in Indianapolis. The lengthy legislative session came to an end with the bill’s final consideration. Despite differing views, lawmakers agreed that Indiana’s casino system needed to be changed.

Overview of House Bill 1038

House Bill 1038 allows the casino licence currently tied to Ohio County to be moved to one of four counties in eastern or north-eastern Indiana—Allen, DeKalb, Steuben, or Wayne. The measure lays out a procedure that calls for municipal approval through a referendum and then a competitive application supervised by the Indiana Gaming Commission. With support from both Republicans and Democrats, it passed the House 67–30, marking a shift in the state’s gambling regulations.

Counties eligible for relocated casino

House Bill 1038 opens the possibility of relocating a casino licence to one of four counties in eastern or north-eastern Indiana. The size and infrastructure of Fort Wayne in Allen County make it a strong contender. However, there is local opposition, according to a poll conducted by State Representative Chris Judy, over half of the constituents are against the proposal, citing concerns about traffic, crime, and social impact.

The situation is different in DeKalb County, which is more rural but still accessible along the I-69 corridor. For travellers from Michigan and Ohio, Steuben County’s location near the intersection of I-69 and the Indiana Toll Road is advantageous. Another option is Wayne County, which has Richmond close to the Ohio border, but it may face competition from neighbouring casinos.

Senate review process

House Bill 1038 is now up for debate, amendment, or passage in the Indiana Senate, which has three weeks to consider it. County councils must pass a resolution by 1 June in order to put the casino question on the November ballot, giving voters the final say. The Indiana Gaming Commission will review applications and provide the licence by 15 April 2027, if it is approved.

Case for relocating Ohio county casino

The Rising Star Casino Resort in Rising Sun, Indiana’s smallest casino with 629 slot machines and 16 tables, has been facing difficulties keeping pace with the market. In December, it reported $4 million in adjusted gaming revenue, contributing just $1.3 million in taxes over six months, less than half a percent of the state’s total gaming tax revenue.

Indiana legalised casino gaming more than 30 years ago with riverboats along the Ohio River and Lake Michigan. Over time, casinos expanded inland to places such as Anderson, French Lick, Shelbyville, and Terre Haute. North-eastern Indiana, however, has remained without a casino presence, and House Bill 1038 seeks to address that gap.

Full House Resorts, based in Las Vegas, owns the Rising Star Casino in Rising Sun and has long sought its relocation. With neighbouring states such as Ohio and Kentucky expanding their gaming options, Rising Sun has struggled to remain competitive, making location a central issue in the company’s push for change.

(Source: Rising Star Casino)

Financial requirements under HB 1038

House Bill 1038 does not give Full House Resorts exclusive rights to relocate the casino licence. Any current Indiana casino operator can apply through an open bidding process. However, the financial requirements set out in the bill are significant, which could limit how many operators are able to compete.

House Bill 1038 sets strict financial requirements for relocating a casino licence. Operators must pay a $50 million relocation fee, which is 2.5 times higher than the amount approved for Gary’s casino move in 2019. They are also required to invest at least $500 million, a figure well above the $290 million spent on building the Terre Haute casino. In addition, the winning operator must provide a one-off payment of $30 million to Ohio County and Rising Sun, along with fair market value compensation if Full House loses the licence.

What happens next

After reviewing applications, financial information, and community impact plans, the Indiana Gaming Commission will make a final decision by 15 April 2027, if the referendum is approved. The Rising Star Casino would remain in Ohio County for the time being, and lawmakers might take up the matter again in later sessions if no county agrees.

Be part of the action! Join the world’s biggest iGaming community with SiGMA’s Top 10 News countdown. Subscribe HERE for weekly updates, insider insights, and exclusive subscriber-only offers.