Indiana House passes bill allowing existing casinos to relocate

A proposal allowing a new Indiana casino has cleared a major legislative hurdle, as House members voted 67-30 on Monday in favor of House Bill 1038. The proposal would give four counties a chance at becoming the new home for Rising Star Casino, currently operating in the Ohio River city of Rising Sun.

Four Northeast Indiana counties gained a potential opening for the casino relocation following the passage of the measure, which was shaped by a state study that ranked the region behind Indianapolis but ahead of other markets.

Eligible locations include Allen, DeKalb and Steuben counties in the Fort Wayne area, along with Wayne County in eastern Indiana. The measure now advances to the Senate, where approval is required by the end of February for the bill to become law. Discussion on the final bill of the day was limited.

The legislation follows an October study released by the Indiana Gaming Commission that evaluated potential sites for relocating a casino license. The study identified the Indianapolis region as the top option, with Northeast Indiana ranked next.

According to the study, a casino in the Indianapolis area would produce higher tax revenue for the state but would reduce revenue at two nearby casinos in Shelbyville and Anderson, both of which operate horse tracks that support the horse racing industry. The Fort Wayne area was described as a less saturated market, with competitive effects directed toward casinos in Ohio and Michigan.

A similar effort stalled in the Senate late last year. In December, a Senate committee endorsed a bill that would have allowed Full House Resorts to move Rising Star Casino to Allen County. That measure did not advance to a full Senate vote before the deadline.

Republican Senate President Pro Tem Rodric Bray said last week that support exists for allowing a relocation option.

“There continues to be support, I think, building for the idea of some option to move a casino up into northeast Indiana,” Bray told reporters. “The study obviously shows that it would be profitable up there. So, I look optimistically at the movement of that bill.”

House Bill 1038 would require the operator selected for the relocated casino to invest at least $500 million in the project within five years of opening.

The existing Rising Star Casino generates the lowest casino tax revenue in Indiana. Its revenue has declined following the opening of casinos in Ohio and the expansion of gambling in Kentucky.

While Full House has sought permission for several years to move the Rising Star Casino, the revised bill would open the process to all operators of Indiana’s 13 state-regulated casinos. Each would be allowed to submit a proposal for the transferred license.

Under the bill, the Indiana Gaming Commission would select the new casino operator by April 15, 2027. Any proposal would require approval from a city mayor and a board of county commissioners. Counties could choose to hold a voter referendum on local support, though the bill does not require one.

The operator awarded the license would pay a $50 million fee to the state over five years. If Full House does not obtain the transferred license, the winning bidder would also be required to pay the fair market value of the Rising Star Casino, as determined by an independent consultant hired by the gaming commission.

The bill includes a provision requiring the new casino operator to pay a total of $30 million to the city of Rising Sun and Ohio County to offset the loss of casino tax revenue.

Local officials have said the proposed compensation would fall short of recent collections, noting that the city and county have averaged about $5 million per year in casino tax revenue. Officials have requested a provision that would allow Rising Sun and Ohio County to receive a percentage of revenue from the relocated casino on an ongoing basis.