Legislators Consider Moving Indiana Licenses

In the upcoming legislative session, Indiana lawmakers will revisit allowing one of Majestic Star Casino’s (l.) two licenses to leave Gary if the city moves forward with plans for a transportation hub where the casinos currently are docked. Terre Haute, Indianapolis and Steuben County have been mentioned as possible locations.

Legislators Consider Moving Indiana Licenses

In addition to sports betting, Indiana lawmakers are expected to consider whether one of Majestic Star’s two casino licenses should be moved out of Gary, if the city moves forward with plans for a transportation hub at Buffington Harbor where the casinos currently are docked.

Gary officials have indicated they’d like one of the casinos to move near the Interstate 80/Interstate 94 corridor, where 300,000 vehicles pass every day.

Spectacle Entertainment, the soon-to-be new owners of Majestic Star and Majestic Star II, also have expressed a desire to relocate one of the casino licenses. One possibility would be Terre Haute, since one of Spectacle’s owners is Terre Haute businessman Greg Gibson and in recent years legislation has been introduced to open a casino there.

Spectacle General Counsel John Keeler said an Indianapolis casino also has been discussed for a long time. “We’re committed that one license stays in the city of Gary. It’s really up to the general assembly where that other license goes.” He said the draft legislation he knows of only mentions Terre Haute. “We’ll go where they send us,” Keeler said.

State Rep. Justin Moed said he believes Indianapolis may be considered as a potential location for the second license. He noted the city has an off-site betting facility, but the closest casinos are Harrah’s Hoosier Park in Anderson and Indiana Grand Racing & Casino in Shelbyville. “I would think that if you are an owner of a casino license in the state of Indiana—the largest economic market in the state has yet to have a casino—you might be interested in at least seeing if that’s possible,” Moed said.

But state Rep. Mike Speedy, whose district include Indianapolis, said, “I don’t think it should be considered. I believe we should remain focused on continuing to make Indiana and, specifically Indianapolis, business-friendly. The more business investment is made in our state and capital city, the more tax revenue will be increased without the societal cost that gaming can sometimes bring with it.”

Officials in Steuben County in northeastern Indiana also have expressed interest, as they did in 2008. The effort was unsuccessful as various parties in Fort Wayne and Lake County tried to protect their interests.

Angola Mayor Dick Hickman was mayor in 2008. He said he still would support a casino but would not welcome the volume of work required to convince lawmakers to move a gaming license to Steuben County. “I’d be open to it, but I don’t know if I would want to lead it. There’s a lot that goes into it. I would support something like that, but I don’t think it’s going to go in this area. I think they’re looking more toward Terre Haute,” he said.

Hickman added, “The toll road and I-69 is a good spot, but they’ve got the Pokagon casino down the road now in South Bend, and that might just be too close.”

State Rep. Denny Zent, who represents the area, said, “We are just trying to do what we can to make this area attractive to growth.”

The Indiana Gaming Commission would have to approve transferring a gaming license. Its investigation of Spectacle Entertainment is expected to be completed in March. However, legislation likely would be required to move the casinos, commission Director Sarah Tait said. Newly elected Governor Eric Holcomb said he’s open to moving one of the licenses.