by James Platz
Legislative Update on Gambling in Indiana
The Indiana legislative session concluded on February 27, 2026, with the General Assembly sending a significant bill to Governor Mike Braun aimed at enhancing the state’s gambling landscape. On March 4, Braun signed the bill, HEA 1038, which permits the establishment of a 14th casino license in the northeastern part of Indiana. This proposed development would notably impact the racinos at Harrah’s Hoosier Park and Horseshoe Indianapolis, but is contingent upon voter approval in a fall referendum.
Bill Passage and Voter Referendum
HEA 1038 was approved by the House on the session’s last day with a 56-37 vote, followed by a 34-16 Senate approval. Notably, before the votes were cast, a conference committee added a requirement for a referendum. Governor Braun emphasized that he would not have signed the bill without this provision, stating that it ensures community input rather than top-down decisions.
Ballot Decision for Local Counties
Residents of Allen, DeKalb, and Steuben counties will ultimately determine whether to allow a casino in their region. This vote will take place during the general election on November 3, where the ballot will include the question: “Shall inland casino gambling be permitted in [insert county name]?” Approval from any of the three counties would initiate a process that would significantly affect Indiana’s racing industry and other casino stakeholders.
Projected Economic Impact
A study released in September 2025 by Spectrum Gaming Group for the Indiana Gaming Commission predicts that a casino in the northeast could lead to an annual revenue decrease of $14.67 million for existing gaming establishments. Specifically, it is anticipated that Harrah’s Hoosier Park and Horseshoe Indianapolis could experience a $1.76 million drop in annual adjusted gross receipts (AGR), which may adversely affect their operations and the purses for various horse breeds.
Casino Location Considerations
The Spectrum Gaming Group’s analysis focused on a potential casino site in DeKalb County. A casino in Allen County, however, could pose a greater impact on local racinos than the initial projections suggest. In contrast, a proposal situated in Steuben County, the state’s northeasternmost area, would likely have a reduced effect.
Application Process Details
If the referendum is successful, applications for the new casino license must be submitted to the Indiana Gaming Commission by December 1. Open to any U.S. operator, the application requires a licensing fee of $150 million and a commitment to invest a minimum of $500 million for the casino and its amenities. In the event that multiple counties approve the referendum, applicants must specify which county they plan to operate in. The Indiana Gaming Commission will finalize its decision by April 15, 2027.
Future Implications and Considerations
Should a license be granted, it would represent one of two current off-track betting licenses under oversight by the Indiana Horse Racing Commission. Under the new legislation, one of these licenses would transition to a casino license, while the other would be eliminated, leading to a net decrease in total gaming licenses statewide. Alternatively, if all three counties reject the referendum, no further action will occur, which would be considered preferable for the industry. Future attempts to establish a casino in the region would require additional legislative steps in 2027.
