An Indiana casino bill passed last week by the state’s House of Representatives would give four different counties a chance to bid for a relocated licence, but the county that includes Indianapolis is not among them.
House Bill 1038, authored by Rep Craig Snow and carrying a slew of co-sponsors, passed the House on 2 February by a 67-30 vote. The bill was sent to the Senate Committee on Public Policy, where it will be considered on Wednesday afternoon. The bill would need to pass the Senate by the end of the month to continue on a path to become law.
If passed, HB 1038 would allow Allen, Steuben, DeKalb and Wayne counties to compete for the licence currently attached to Rising Star Casino Resort in the city of Rising Sun. The casino is operated by Nevada-based Full House Resorts and has long been the worst-performing casino in the state because of expansion nearby in Ohio and Kentucky.
Full House petitioned for a relocation for years but failed to drum up legislative support. Last year, lawmakers decided to explore the issue more thoroughly by passing SEA 43, which called for a market study of potential relocation targets. That study, published in September, listed downtown Indianapolis and Fort Wayne as being the top two contenders.
Duelling bills seeking Indianapolis and Fort Wayne-specific relocations were filed, but neither garnered support. The fact that Indianapolis was rejected singularly and as part of the broader compromise bill likely signifies an end for the city’s casino hopes, at least for now.
Indianapolis deemed harmful for Indiana casino competition
The decision to exclude Indiana’s capital city might have come down to a risk-reward analysis related to Indiana casino revenue cannibalisation.
Researchers from the study concluded that while Indianapolis was the most lucrative relocation spot, a new casino would have a significant impact on existing properties. The two most-impacted licensees, Horseshoe Indianapolis in Shelbyville and Harrah’s Hoosier Park in Anderson, are both horse racetracks that support the state’s racing industry.
The Fort Wayne area would not have the same potential but also would not have as much competitive impact, the study said. As such, the race for a licence in that region has quickly become steep. Three of the four counties included in HB 1038 – Allen, Steuben and DeKalb counties – are in the Fort Wayne region.
Senate President Rodric Bray already expressed optimism for the relocation bill despite the short deadline for passage this month.
“There continues to be support, I think, building for the idea of some option to move a casino up into northeast Indiana,” Bray said last week, per the Indiana Capital Chronicle. “The study obviously shows that it would be profitable up there. So, I look optimistically at the movement of that bill.”
Details of proposed casino relocation process
The details of the bill lay out how the relocation process would unfold. All four counties would be free to make their pitch and, despite Full House holding the Rising Star licence, operators from the state’s 13 existing casinos would be eligible to submit proposals.
Endorsements from local mayors and county commissioners would be required for site proposals. However, the bill does not require a voter referendum on the issue, which all other Indiana casino projects have previously been subject to, per the Chronicle.
The winner would be determined by the Indiana Gaming Commission by 15 April 2027. If an operator other than Full House were to win the licence, the winner would have to pay fair market value for Rising Star as determined by the commission. Additionally, the winner would have to pay a $50 million relocation fee over five years. The capital investment minimum for any new development is also pegged at $500 million.
The biggest unresolved issue pertains to compensation to Rising Sun and Ohio County for the lost licence. Currently, the bill calls for $30 million in compensation for lost tax revenue, but local stakeholders have said that total is inadequate given the current average of about $5 million per year. That allotment could change from a set total to an annual fee in perpetuity.
Jess Marquez
Jess has covered the global gaming industry since 2022. A native of Reno, Nevada, he’d like to note that it’s Ne-va-da, not Ne-VAH-da.
Original article: https://igamingbusiness.com/casino/indiana-casino-relocation-indianapolis-eliminat/
