During a recent earnings call, CEO Dan Lee expressed concerns that the opponents of a new casino in Indiana have gained an upper hand due to modifications in House Bill 1038.
As Indiana's legislative session wrapped up last month, lawmakers reached a consensus on a bill that could pave the way for a commercial casino in Fort Wayne or other areas in northeastern Indiana. However, this agreement may inadvertently empower those against the casino, especially as voters prepare to cast their ballots in November.
Governor Mike Braun signed House Bill 1038 into law last Wednesday, which mandates that Allen, DeKalb, and Steuben counties conduct referendums to gauge local support for a casino. The bill's journey through the General Assembly saw debates over this referendum requirement, with the House initially insisting on local officials' approval before a vote, a stipulation later removed by the Senate.
In a recent statement, Braun emphasized the necessity of a referendum for his approval of the bill.
Lee highlighted the potential for “well-funded opposition” to the proposed $500 million casino resort, indicating that it may be difficult for proponents to match the financial backing of those against the initiative. “You’re going to have three referendums where the opposition is probably well funded and the pro side probably isn’t,” he noted, leaving uncertainty about the outcome. Historically, such measures tend to pass due to their ability to generate jobs and tax revenue, but the current legislative setup poses significant challenges.
Full House Resorts is currently adopting a wait-and-see approach. Lee suggested that the opposition, which operates the website SaveFW.com, might be financially supported by a tribal gaming entity from southern Michigan or another group that would be negatively impacted by a new casino in Fort Wayne.
Initially, Full House had been in favor of the bill, which would have allowed them to close their existing casino in Rising Sun and establish a larger facility in Fort Wayne. However, an amendment to HB 1038 introduced a new casino license for one of the three counties, meaning that Full House could retain the Rising Star Casino Resort even if a new casino is permitted in northeastern Indiana.
Lee reiterated that the Rising Star Casino, although small and surrounded by numerous competitors, still generates some profit. The company believes relocating to an urban area would be more beneficial.
Research by Spectrum Gaming Group indicates that a casino in downtown Indianapolis or Fort Wayne could significantly boost state revenue, with an Indianapolis location projected to generate over $170 million annually.