Indiana Governor signs legislation that could lead to new casino

by James Platz

When the 2026 Indiana legislative session came to a close Friday (Feb. 27), the state’s General Assembly sent a bill to Governor Mike Braun that could lead to increased gambling competition in the state. Braun signed the bill, HEA 1038, into law March 4. The legislation allows for a 14th casino license to be located in the northeast corridor of the Hoosier State, and would impact racinos at Harrah’s Hoosier Park and Horseshoe Indianapolis. In order for that to happen, however, voters must pass a referendum this fall.

HEA 1038 passed the full House early in the session’s final day by a 56-37 margin, followed by a 34-16 passage by the Senate. Prior to being voted on by both chambers, language was added in a conference committee calling for the referendum. Earlier this week, Braun discussed the legislation and said he would not have signed it into law without the call for a referendum.

“It’s at least going to not be something that’s dictated from the top down,” Braun said during a visit to Fort Wayne and interview with television station WANE 15. “And that’s why I signed that bill. Then that will have to play out among the citizens up here.”

Now, voters in Allen, DeKalb, and Steuben counties will decide whether a casino comes to that area of the state. Voting will take place during the general election on Nov. 3. Election boards in the three counties must place the following question on the ballot with a Yes/No vote: “Shall inland casino gambling be permitted in [insert county name]?” Should any of the three counties approve the referendum, it will set a process in motion that stands to impact the state’s racing industry as well as other casino operators.

According to a September 2025 study prepared for the Indiana Gaming Commission by Spectrum Gaming Group, placement of a casino in the northeast of the state is projected to have a $14.67 million annual loss in adjusted gross receipts (AGR) among the existing gaming properties. That impact is projected to be a $1.76 million annual reduction in AGR at Harrah’s Hoosier Park and Horseshoe Indianapolis, negatively affecting both operations and purses for standardbreds, thoroughbreds and quarter horses.

The Spectrum Gaming Group study focused on a location in DeKalb County, which is north of Allen County and Fort Wayne, the state’s second most populous city. A casino located in Allen County stands to impact Harrah’s Hoosier Park and Horseshoe Indianapolis more than the projections offered. However, a casino based in Steuben County, the northeasternmost county in the state, would have a lesser impact.

Language exists in the newly-signed law where a casino applicant could include financial commitments to the racing industry to offset the impact to AGR. It is not required of an applicant, however. Still, the discussion is contingent on one of the three counties passing the referendum. A previous attempt in last year’s legislative session to relocate a casino license from southeast Indiana to New Haven (immediately east of Fort Wayne) never made it out of the Senate Public Policy Committee after strong opposition from local groups.

If the referendum passes, applications to obtain the lone casino license are due to the Indiana Gaming Commission by Dec. 1. The application process is open to any United States operator, and requirements include a $150 million licensing fee and a commitment to invest at least $500 million for a casino and non-gaming amenities. If the referendum passes in more than one county, the applicant must identify in which of the approving counties they propose to operate. The IGC has a process in place if more than one application is received, and the deadline for a final decision and selection of a single applicant is April 15, 2027.

Should a license be awarded, it would be one of two open off-track betting licenses currently held by the Indiana Horse Racing Commission. Under the new law, one of the licenses would be converted to a casino license to be awarded by the IGC. The other license would be eliminated, resulting in a net reduction of statewide gaming licenses. The OTB licenses were once used to operate off-track locations in Merrillville (closed in 2015) and Evansville (closed in 2012).

This is all null and void, of course, if the trio of counties all turn down the referendum. A no vote by all three would result in no action — a good thing for the industry — and further attempts to place a casino in the region would require additional legislative action in 2027.