Indiana Governor signed HB 1038, opening the door for commercial casinos in places like Fort Wayne, but Full House Resorts CEO Dan Lee warned in the earnings call that the November referendums in three counties could face significant challenges. The bill requires voters in Allen, DeKalb, and Steuben counties to decide through a referendum whether to accept casinos, and the opposition is reportedly well-funded. Simply put, the legislators have passed the ball to the voters, but operators worry they simply can't compete.
Referendum Concerns: The opposition is well-prepared, while the proponents lack funds
Lee pointed out that the opposition might be well-funded in the three referendums, whereas the proponents struggle to raise funds. He suspects that the opposing forces might come from tribal casinos in southern Michigan or other entities that would be harmed by the opening of a casino in Fort Wayne, with the related website SaveFW.com already online. Normally, referendums pass easily due to job creation and tax revenue, but the way this legislation is set up makes the referendums particularly challenging.
Tax Comparison: Fort Wayne's annual revenue is $61 million, only a third of Indianapolis
Research by Spectrum Gaming Group shows that a casino in Indianapolis could generate $170 million in annual gaming taxes, while Fort Wayne would generate $61 million, and Full House's existing Rising Sun casino contributes only about $1 million. Legislators ultimately excluded the capital but raised the new license fee from the initial $50 million to $150 million, and required the winning bidder to invest at least $500 million. This threshold might be feasible in Allen County, but is doubtful in much less populated DeKalb and Steuben counties.
Future Uncertainties: Operators may collectively give up, Indianapolis option still on the table
If the November referendums fail, or if operators like Full House give up due to high thresholds, the issue may return to the legislature next year, with Indianapolis potentially becoming a candidate location again. Lee stated that the company will watch the process, hinting that next year's legislative session remains a key point. Interested in the latest updates on regional gaming in the US? PASA's official website continues to track.
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