Indiana Casino Relocation Bill Changes Again After Senate Rewrite

^{Indiana lawmakers at the Statehouse are weighing revisions to a casino relocation bill to create a new gaming license rather than transfer Rising Star’s existing permit. (Photo: Sean Pavone / Alamy)}

The Indiana casino relocation bill moved forward yet again on Thursday, but not before it received another significant modification from the state Senate Appropriations Committee. 

House Bill 1038 cleared the committee by an 8-5 margin, but only after the bill was amended to allow for a new casino without necessarily requiring the closure of the Rising Star Casino in the southeastern Indiana city of Rising Sun.

‘Relocation’ Bill Would Create New Casino License

In the amended version of the bill, the Rising Star’s license wouldn’t be transferred to a new casino. Instead, lawmakers would convert one of two unused off-track betting licenses into a casino license, while the second unused license would be eliminated. That would allow for a new casino without clearly expanding the number of licenses being used in the state.

The amended version of the bill would now restrict the new casino to northeast Indiana. That’s different from the previous version that passed the House earlier this month, which opened bidding for a relocated license from the Rising Star to four counties – three in northeastern Indiana, near Fort Wayne and Wayne County, in eastern Indiana.

Proponents of the change suggested that the narrower geography is intended to limit harm to existing casinos, as a 2025 Spectrum Gaming Group study suggested. That study found that Indianapolis would be the location that would bring in the most revenue for a new casino, but could cannibalize revenue from other venues. Northeast Indiana was the second-most lucrative area and did not have those same concerns. 

“This is a highly regulated industry, and it’s not free-market,” Senate Appropriations Chair Ryan Mishler (R-Mishawaka) said, adding that the casino licenses are state assets that must be deployed wisely.

No Provision for Local Referendum in Amended Bill

The amended bill now includes several additional changes. Any casino operator in the United States may now apply for this new license, whereas the initial House bill restricted applications to operators already doing business in Indiana. 

In addition, a provision that would have allowed for a local referendum on a potential new casino was stripped from the bill, though county commissioners must still sign off on any project.

But the most controversial aspect of the bill was the restriction on potential casino locations. The bill received bipartisan support and opposition, with some questioning why it focused so narrowly on northeast Indiana.

Senator Aaron Freeman (R-Indianapolis) said he plans to pursue another amendment to add Marion County and perhaps Wayne County back as potential locations. 

“If the goal of our gaming system is not maximum revenue to the state of Indiana," Freeman said. "I want somebody to help me with what the goal of our gaming system is. All I wanted to do was have an open conversation, and we should allow free market capitalism to work, but that’s not what we’re doing here today.”

The Rising Star Casino pulls in the least revenue of any casino in Indiana. Its owner, Full House Resorts, has been seeking to relocate its license after struggling to compete against new casinos in Ohio and Kentucky. 

However, some legislators now say they’d rather support the Rising Star and the city of Rising Sun rather than move the casino.

“Rising Sun will be able to continue to operate as they’re operating today,” House Speaker Todd Huston (R-Hamilton County) said, calling the amended bill a reasonable compromise. “I’ve had lots of meetings…with the good folks of Ohio County and Rising Sun, and we want to make sure we’re doing everything we can to support them.”