(INDIANAPOLIS) - A proposal to relocate a southern Indiana casino license narrowly cleared its first major hurdle Tuesday, but a late amendment redirecting casino tax revenue is now emerging as the bill's most significant and controversial feature.
House Bill 1038 advanced out of the House Ways and Means Committee on a 10-8 vote. The legislation would allow the license held by the Rising Star Casino in Ohio County, Indiana to be moved to a higher-traffic market in northern or eastern Indiana, with Allen, Steuben, DeKalb and Wayne counties identified as potential locations.
The committee adopted an amendment that would require 10 percent of local casino tax revenue to be diverted to a regional development authority, rather than going entirely to the host city or county.
Supporters say the change ensures surrounding communities share in the economic impact of a casino, while critics argue it dilutes local benefits and adds a new layer of governance.
The revenue shift is seen by many lawmakers as the bill's most consequential element, potentially reshaping how casino-generated funds are distributed and used for broader regional development projects rather than solely local priorities.
Local leaders in Fort Wayne and Steuben County have expressed interest in the project, citing estimates of up to $500 million in private investment. In Steuben County, officials have discussed a potential site near the Interstate 69 and Indiana Toll Road interchange just south of the Michigan state line.
Opposition remains strong among legislators concerned about expanding gambling in Indiana and skeptical of the financial assumptions behind the relocation. The narrow committee vote underscores the bill's uncertain path forward.
House Bill 1038 now moves to the full House for second reading and further debate.