Indiana Casino Bill Narrowly Passes Senate Without Local Referendums

^{Fort Wayne, the second-largest city in northeast Indiana, is now the focal point of a proposed $500 million casino development under House Bill 1038. (Photo: Nicholas Klein)}

The Indiana Senate voted 26-22 in favor of a bill that would allow a new casino in the Fort Wayne area, narrowly passing the legislation despite growing opposition to some of its provisions.

House Bill 1038 would create a new casino license available only for locations in three northeastern Indiana counties in the Fort Wayne area: Allen, DeKalb, and Steuben. 

Lack of Referendum Nearly Sinks Bill

The bill is markedly different from the version that initially passed the Indiana House earlier in February. That version would have moved the license from the Rising Star Casino in the city of Rising Sun – consistently the lowest-performing venue among all Indiana casinos – to a new location in one of four counties, with Wayne County in eastern Indiana also included.

Under the Senate version of the bill, the Rising Star will keep its license and remain in place. However, a new license will be created by converting an unused off-track betting license for casino use. The bill requires that developers spend at least $500 million on a new casino and related resort amenities.

However, several state senators who voted against the bill bristled at one aspect in particular: the elimination of even the possibility of local referendums on any new casino project. While the House version didn’t require such a referendum, it still left it as a possibility – one that is missing from the Senate legislation.

“We’ve heard talk, ‘Well, there might be too much opposition on the other side, and it would fail,’” Senator Liz Brown (R-Fort Wayne) said after the vote. “Oh, my goodness. What a horrible idea that the people don’t get to decide.”

Fort Wayne Beats Out Indianapolis in Casino Debate

The idea of putting a casino in the Fort Wayne area has gained traction over the last year, while Indianapolis has largely been left by the wayside in state discussions. A 2025 study by Spectrum Gaming Group found that Indianapolis would be the most profitable area for a new casino, with northeastern Indiana coming in second, but that putting a casino in the city would take revenue from nearby casinos in Shelbyville and Anderson.

“We better keep attracting people to come to Indianapolis, because Nashville is not going away,” Senator Aaron Freeman (R-Indianapolis) said during a meeting. “Charlotte’s not going away, name your city in the Midwest is not going away. In case you didn’t know, we don’t have a beach or mountains to go to.”

The Indiana Senate vote wasn’t decided on stark party lines. Republicans voted for the bill by a slim 22-17 margin, while Democrats were opposed 5-4. 

The amended bill must now go back to the Indiana House, which will need to approve the legislation before the state’s legislative session – typically shorter in even-numbered years – ends. The session is scheduled to wrap up on Friday, Feb. 27.