Indiana legislators continue to reshape the state’s gaming framework as two separate proposals move through the legislative process. One bill focuses on land-based casino development and licensing, while another targets online sweepstakes-style gaming platforms. Both measures have progressed after amendments and votes, though further decisions remain pending before any final outcome.

Licensing Structure And Location Debate

House Bill 1038 moved forward after the Senate Appropriations Committee approved a revised version by an 8-5 vote. The proposal now advances to the full Senate for additional debate. The amended draft authorizes development of a new casino in northeast Indiana while allowing the Rising Star Casino in southeastern Indiana to remain operational.

Lawmakers adjusted the original concept significantly. Instead of relocating an existing casino license, the revised plan converts one unused off-track betting license held by the Indiana Horse Racing Commission into a casino license overseen by the Indiana Gaming Commission. The second unused racing-related license would be eliminated. Supporters argue the approach prevents an increase in the statewide number of gaming licenses.

Senate Appropriations Chair Ryan Mishler emphasized the importance of careful placement. “This is a highly regulated industry, and it’s not free-market,” Mishler said, as reported by Indiana Capital Chronicle. He also described casino licenses as “state assets” that require deliberate siting to avoid financial disruption across the broader gaming ecosystem.

The amended proposal allows any U.S.-based casino operator to apply for the new license. Legislators also shifted the application deadline forward from Dec. 1 to Nov. 1 to provide regulators additional evaluation time. The license would carry a $150 million fee, with $50 million allocated over five years to a distressed casino fund intended to support communities affected by potential casino closures.

Applicants would need to commit at least $500 million in capital investment. If a casino were to shut down permanently rather than change ownership, the license would end instead of becoming available for reassignment elsewhere.

Debate continues around possible casino locations. The revised bill excludes Wayne County and does not include Marion County, despite its tourism potential. Mishler said the decisions relate partly to compensation payments that may be owed to existing casinos experiencing revenue losses due to new competition. Northeast Indiana, he explained, faces competitive pressure primarily from neighboring Michigan facilities.

Some lawmakers have challenged those exclusions. Senator Aaron Freeman questioned the rationale, saying: “If the goal of our gaming system is not maximum revenue to the state of Indiana, I want somebody to help me with what the goal of our gaming system is — and why we would exclude two counties.” He also stated, “You could make enough money in Marion County with tourism to keep the horsemen in Anderson, Shelbyville … All I wanted to do is have an open conversation, and we should allow free market capitalism to work, but that’s not what we’re doing here today.”

Earlier drafts included an optional local referendum requirement, but the latest amendment removed that language. County commissioners would still need to approve any casino development. Senator Liz Brown expressed concern that residents could lose a direct voice in the decision, while House Democratic Leader Phil GiaQuinta said the lack of a referendum “stands out.”

House Speaker Todd Huston described the amended bill as “a pretty good compromise” and highlighted the distressed casino fund as a safeguard for communities dependent on gaming revenue. Huston added: “Rising Sun will be able to continue to operate as they’re operating today.”

Separate Bill Targets Sweepstakes Casinos

At the same time, lawmakers have advanced House Bill 1052, which addresses online sweepstakes-style casino platforms. The Senate approved an amended version by a 37-8 vote and returned it to the House for concurrence before the legislative session ends February 27.

If enacted, the measure would prohibit sweepstakes casinos from operating within Indiana and empower the Indiana Gaming Commission to impose civil penalties of up to $100,000 per violation. The rules would apply both to in-state operators and companies offering services to Indiana residents from outside the state.

Indiana currently does not permit regulated real-money online casinos. A sweepstakes ban would remove one of the few online alternatives available to residents. Some analysts suggest this could redirect some activity toward offshore operators beyond state oversight.