Proposed bill would move 750 unused 'positions' from Rising Sun casino to Terre Haute

The casino would create a projected 750 casino jobs and 500 indirect jobs, said state Sen. Jon Ford, R-Terre Haute.

A new casino in Terre Haute is projected to generate more than $100 million in new casino revenue by 2019 for its owner, Las Vegas-based Full House Resorts Inc.  

The projections also include more than $26 million in new taxes for the state. Of that, more than $10 million would remain in Terre Haute and Vigo County. 

Sen. Ford, R-Terre Haute, said Rising Star is already licensed for 1,500 gambling games, however, half are unused.

“They have been talking for the past few years about moving this casino, from moving it completely out of Rising Sun to moving to an area near Indianapolis,” Ford said. 

“The opportunity is there, so I am creating a bill as a compromise that would keep the existing games in Rising Sun, allow that tax base to be maintained there and bring these unused state assets into a revenue producing environment,” Ford said.

“I think this legislation is within the (spirit of the) current legislation that has been set up,” Ford said. “I don’t view this as an expansion of gaming. We have given them a license for 1,500 positions, and they are not using half of them, so why not move those state assets to another community and generate state revenue?” Ford said.

Terre Haute would receive more than $7.3 million and Vigo County more than $2.7 million in projected annual wagering taxes. The facility would also generate more than $925,000 for other Indiana counties that do not have a casino.

Those figures for Terre Haute include as much as $402,000 from a proposed new food and beverage tax, another bill proposed for the 2017 session of the Indiana General Assembly, Ford said.

Full House Resorts Inc. operates five casino facilities in Mississippi, Colorado, Indiana and Nevada.

Alex Stolyar, senior vice president and chief development officer for Full House Resorts, said Full House seeks to locate in Terre Haute as it “is in an area that is looking for economic development. That is something that gaming in Indiana was originally intended to do,” Stolyar said. “It is a prime market for that.”

Also, Stolyar said, the company wants “to develop in areas where we are wanted. I can tell you that having done some preliminary due diligence on Terre Haute and meeting with local leaders at the city and the county levels, the response has been very positive,” he said.

Additionally, the location of Terre Haute, “being along the Illinois border, really allows us to capture a large part of those revenue dollars from Illinois and bring them into Indiana,” Stolyar said.

Terre Haute is at least a two hour drive from any competing casino. Legislation this year to expand gambling in Illinois failed, including legislation to allow a casino in Chicago as well as in Rockford, Lake County and Danville, Illinois. 

Additionally, Illinois has nearly 24,000 video gaming terminals that compete with larger casinos. Video gaming is not permitted in Indiana.

“Illinois has made no secret there definitely is a focus for a casino in Danville, so we think timing is critical as we have got to beat them to the punch,” Stolyar said.

Ford said the casino would require 20 to 25 acres and Full House Resorts would likely want to locate along Interstate 70 or another highway. Stoylar said the company has looked at sites in downtown Terre Haute, along the Wabash River, as well as area near or along I-70. 

“We are still in the really early stages of looking at different (site) options,” Stoylar said. “For Senator Ford’s bill, it is important for him that we be inside the city limits so the city benefits from the tax base that we are providing.”

If legislation is approved by the Indiana General Assembly for a casino in Terre Haute, Stoylar said it would take six to nine months for design, with an additional 12 to 18 months needed for construction. The hotel could likely then be operations in the first or second quarter of 2019.

The construction, Stoylar said, could include a wrap-around hotel as well as an entertainment and retail component, however, that depends on the site location, he said.

Ford said Rising Star casino has faced increased competition from casinos near Cincinnati since 2011 and has been losing revenue. Additionally, revenue loss has come from the addition of French Lick Resort in 2006, along with the introduction of horse racing track/casinos, called racinos, in Indiana in 2007.

Revenues at Rising Star, Ford said, dropped from a high of more than $160 million in 1998 to more than $50 million this year.

“Full House Resorts is the smallest casino operator in the state,” Ford said. 

“This is a huge economic development opportunity. This is $100 million to $150 million construction build. Of that, 50 percent would have to go to non-gaming areas,” Ford said, “so that is restaurants, entertainment venues, retail.” 

“This would require them to have a full economic impact of restaurants, retail and other types of establishments, something other than just a box with slot machines in it,” Ford said.

Ford said he plans to file legislation possibly as soon as next week, adding it “has a long way to go.” 

Indiana Rep. Alan Morrison, R-Terre Haute, and Rep. Randy Frye, R-Greensburg, will carry the issue in the House, Ford said.