Indiana Lawmakers Consider Casino Expansion Locations

A new proposal for a study on possible casino expansion locations in Indiana is gaining momentum, sparking debate among lawmakers and industry stakeholders about the future of gambling in the state. Senate Bill 43, which cleared the Indiana Senate on a 33-16 vote, directs the Indiana Gaming Commission to investigate the top three possible areas for a new casino.

The Bill Elicited Mixed Responses

Although the new bill doesn’t explicitly legalize new casinos, public support from key lawmakers has indicated that a downtown Indianapolis casino may be on the horizon. The study is partly motivated by a separate effort to relocate a gaming license from Rising Sun, a small Ohio River town, to New Haven near Fort Wayne. That legislation, Senate Bill 293, did not advance.

During the debate on SB 43, Sen. Aaron Freeman (R-Indianapolis) and Sen. Greg Taylor (D-Indianapolis) were vocal in their support for a downtown Indianapolis casino, saying it had the potential to bring a substantial influx of revenue to the state and local governments. Freeman noted that the city was perfectly positioned to host a high-profile venue.

We have world-class events and world-class entertainment. To support that and our conventions and everything else, we should absolutely put a casino in downtown Indianapolis.

Sen. Aaron Freeman

Freeman noted that additional tax revenue from a new casino could help address budgetary concerns in Marion County and fund Indianapolis road and infrastructure improvements. However, local community representatives and existing casino operators have opposed the project, fearing that a new high-profile gambling venue could exacerbate social issues and lead to market cannibalization.

Industry Representatives Fear Disruptions

Indiana’s casino industry has historically pushed back against Indianapolis-based gaming proposals. In 2015, Full House Resorts sought to transfer some of its gaming activity from Rising Star Casino to the former Indianapolis International Airport terminal. However, the Indianapolis Airport Authority did not accept this proposal. In 2018, a separate attempt to transfer a casino license from Gary to Indianapolis faced opposition from the Casino Association of Indiana.

Meanwhile, Indiana’s gambling landscape continues to evolve. While brick-and-mortar casinos remain successful, attempts at legalizing online gaming have met stiff resistance. In January 2025, House Bill 1432 failed to gain traction due to concerns that online gambling could hurt retail casinos. Opponents also referenced problem gambling risks, even though the bill provided for a responsible gaming program.

Indiana currently has 13 casinos, with the closest to Indianapolis located in Anderson and Shelbyville. Despite the attractiveness of a high-profile venue in the state’s capital, industry representatives fear such a project would impact nearby properties in Anderson and Shelbyville. As Indiana moves forward with SB 43’s proposed study, lawmakers must balance economic opportunity with industry concerns.