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Indiana lawmakers continue debating a major casino relocation plan. House Bill 1038 could shift one existing licence to a new region. The Indiana House approved the bill on 2 February with a 67-30 vote. Lawmakers then sent the proposal to the Senate Public Policy Committee. The Senate must approve the bill before the end of February to keep it alive.
Supporters believe momentum continues to build around the idea.
Four counties enter the race
If lawmakers pass HB 1038, four counties will compete for the licence. Allen, Steuben, DeKalb, and Wayne counties may submit proposals. The licence currently belongs to Rising Star Casino Resort in Rising Sun. Full House Resorts operates the property. Rising Star has struggled for years. Nearby casino growth in Ohio and Kentucky reduced its performance. Full House has tried to move the licence before, and previous efforts failed due to weak political support.
Indianapolis Falls Short
Although Indianapolis ranked highly in a recent market study, lawmakers excluded the city from the relocation process. The study identified downtown Indianapolis and Fort Wayne as the most profitable potential locations. However, legislators worried that a new casino in Indianapolis could negatively impact nearby venues, including Horseshoe Indianapolis and Harrah’s Hoosier Park. Both locations support the state’s horse racing industry, which officials aim to protect. As a result, the bill reflects a compromise that favors smaller counties over the state capital, effectively ending Indianapolis’s immediate casino hopes.
Fort Wayne Region Emerges as Front Runner
The Fort Wayne region now appears to have the strongest chance of winning the licence.
Three of the four counties eligible under the bill, Allen, Steuben, and DeKalb, fall within this area. Although the region may generate slightly lower profits than Indianapolis, it carries fewer competitive risks for existing operators. Senate President Rodric Bray expressed optimism about the plan, noting that the market study shows northeast Indiana could support a successful casino project.
How Relocation Would Work
HB 1038 lays out a clear relocation process. Eligible counties must present detailed development proposals with endorsements from local mayors and county commissioners.
Unlike previous Indiana casino projects, the bill does not require a voter referendum, allowing lawmakers to move the process along more quickly. The Indiana Gaming Commission would select a winner by 15 April 2027. Existing casino operators in the state can submit bids, and any winner besides Full House Resorts would pay fair market value for Rising Star, along with a $50 million relocation fee spread over five years. Developers must also commit to at least $500 million in new investment, making sure to have a substantial economic impact on the winning community.
Compensation and Next Steps
The bill includes $30 million in compensation for Rising Sun and Ohio County, though local leaders argue this may not fully cover lost tax revenue. Lawmakers could adjust the plan to provide annual payments instead of a lump sum. The Senate now has the final say on HB 1038, and its approval or rejection will determine whether the Rising Star licence can move forward. For now, Indianapolis appears unlikely to see a new casino, while northeast Indiana counties prepare for a competitive race to secure the licence.
Source: LegiScan
