Full House Resorts came to lawmakers for help to maintain its financial footing in Indiana. The operator’s Rising Star Casino in southern Indiana was losing revenue as the market around Cincinnati exploded, and it wanted to move its casino license elsewhere — preferably to northeast Indiana.
After two years of discussion, lawmakers finished the session by creating a 14th state casino license in a bill that does nothing to specifically help Full House – a longtime partner that has sent more than $116 million in tax revenue over the years to Indiana coffers.
It was a curious thing to watch, as the debate moved from simply relocating an existing license to putting a new license up for bid. Any brick-and-mortar casino in the U.S. can apply.
Full House, along with the two other Indiana casinos along the Ohio River, has seen its revenues drop as five casinos opened nearby in Ohio. It continues to make money in the location but ultimately will have a decision to make.
Full House officials argued that moving the existing license to an underserved area of the state not only helps Full House but also reduces competition for the remaining casinos in southeast Indiana.
There were numerous versions of the bill over the session in both the House and Senate. But House leadership stepped in to require a competitive bidding process rather than a relocation of an existing license.
Lawmakers often mention how important the free market is in Indiana. But the problem is: gambling is not a free market here. It is heavily regulated by the state. If it was truly a free market, Full House could have simply moved its casino to a more desirable spot on its own.
There is some unease around the casino discussion due to the last major gambling change and an accompanying felony conviction.
Then-lawmaker Sean Eberhart (R-Shelbyville) accepted a lucrative job opportunity with a major gaming company in exchange for his legislative support of a bill in 2019 to relocate two casinos from Lake Michigan to “other areas beneficial to Spectacle (Entertainment),” according to the U.S. Attorney’s Office. Spectacle ultimately lost the license but Eberhart pleaded guilty to fraud and received a one-year federal prison sentence.
That corruption case certainly colored the issue this year, at least behind the scenes.
So, what options does Full House have?
It can try to sell its Rising Sun casino and license — but the over-saturation of the market there would make that difficult.
It could also bid on the new license in northeast Indiana. But that’s a $650 million proposition: $150 million for the new license and a commitment of a $500 million investment in the property over five years.
Do the numbers work? Full House and other casino operators have time to figure that out while they await referendums in Allen, DeKalb and Steuben counties in November.
If the voters of those counties approve inland casino gambling in the county, the Indiana Gaming Commission has a Dec. 1 deadline for applications and proposals for the license.
Thankfully, Gov. Mike Braun stepped in to require those referendums and bring some integrity back to the process. Lawmakers were set to ignore historical precedent of every county approving one before a casino could move in. Only when the governor said he would veto the bill did that change during the final days of the session.
My husband and I enjoy visiting some of Indiana’s casinos, and I truly hope the newest one — in one of my favorite areas of the state — will be a great addition. But I can’t help but feel bad for an existing operator who asked for help and got none.