The idea of a satellite casino in Terre Haute is not only back, but there also may be competition for one in 2019.
That’s if the General Assembly and Gov. Eric Holcomb approve the idea of allowing facilities to move under-utilized gaming positions, including slot machines.
“There are a lot of moving parts to come together for that to happen,” Ed Feigenbaum, editor of Indiana Gaming Insight, said Monday. “It’s going to be an extremely heavy lift.”
Full House Resorts, owner of Rising Star Casino and Resort in Rising Sun on Monday announced plans to reintroduce its proposal for what it calls a “supplemental location” in Terre Haute.
A tie vote in the Senate Public Policy Committee killed the idea in 2017 amid concern the proposal at that time favored a single casino operator. The new proposal would allow other casino operators to compete for a Terre Haute operation.
The announcement from Full House comes after Spectacle Entertainment, a new group that includes Terre Haute businessman Greg Gibson, revealed plans to acquire two casino licenses in Gary and move one of them – possibly to Terre Haute.
“Their proposal supports our thesis that Terre Haute is a prime location to allocate the state’s unused gaming resources,” said Alex Stolyar, senior vice president and chief development officer with Full House. “We look forward for an opportunity to compete with all interested operators to present the best proposal for Terre Haute and for Indiana.”
Gibson did not respond Monday to a request for comment.
Every Indiana casino is operating fewer games than the law allows, “costing the state millions in unrealized tax revenues,” Full House said in a news release.
Rising Star faces competition from Ohio casinos that have opened in recent years, Feigenbaum noted. Further, Northwest Indiana casinos have lost business to video gaming terminals in Illinois restaurants, bars and other locations that “have proven to be insidious,” he said. Also competing for gamblers’ dollars is a new Native American casino in South Bend.
“Things are not looking up” for the industry in Indiana, Feigenbaum said. Figures released Monday show casino revenues were below $200 million in November for the sixth straight year. “That’s of concern,” he said.
While changes may be in store for the gaming industry, Feigenbaum said Holcomb and legislative leaders are looking at a long-term perspective.
“When you start doing that, it becomes very difficult to make short-term changes in anything, and this is one that would have considerable impact,” he said. “All of the casino companies will be interested in doing something.”
There are also changing demographics to consider.
While baby boomers have been content to play slot machines, “millennials do not want to do that solitary kind of gaming,” Feigenbaum said. “They prefer more social interaction. They’re not going to be playing slots 10 years from now.”
Whatever may happen with casino legislation, restructuring of the Senate Public Policy Committee announced Monday would lessen the possibility of a tie vote. It now has nine members instead of 10.
The seat eliminated belonged to Lonnie Randolph, D-Gary, whose district includes all four Lake County casinos.
Tim Lanane, D-Anderson, who represents the Hoosier Park racetrack and casino, is still on the panel along with Jack Sandlin, R-Indianapolis, whose district includes an off-track betting parlor owned by Caesar’s Entertainment, which also owns Hoosier Park.
Indiana is not the only state to consider satellite casinos. Pennsylvania passed a gambling expansion measure in 2017 allowing each of that state’s 12 casinos to buy permits for up to 10 “mini casinos” with 750 slot machines, 30 to 40 table games and sports betting. Five such locations are expected to begin operating in 2019.
The legislation Indiana considered in 2017 would have allowed Rising Sun to move 750 unused gaming positions to Terre Haute.