A newly released study commissioned by the Indiana Gaming Commission has identified downtown Indianapolis and a site near Auburn in northeast Indiana as leading candidates for relocating an existing casino license.
The analysis projects that a downtown Indianapolis location could generate $493.3 million in annual adjusted gross receipts and produce over $170 million in state tax revenue.
Key Takeaways:
- Downtown Indianapolis could generate nearly half a billion dollars annually in revenue
- Northeast Indiana site offers growth with minimal impact on horse racing industry
- Legislative reactions reveal concerns over management, traffic and social impacts
The 45-page report, conducted by Spectrum Gaming Group, was prepared in response to Senate Enrolled Act 43 and presented to the State Budget Committee, per Indiana Capital Chronicle. It highlights the economic potential of moving a casino to a downtown area near the Statehouse and Indiana Convention Center.
The study also names a second location near Auburn that could generate an estimated $204.3 million in adjusted gross receipts and $61.1 million in state tax revenue.
What the Study Says About the Economic Potential?
The Spectrum Gaming Group report notes the Indianapolis site’s strategic location downtown close to major attractions, including the Indiana Convention Center, professional sports venues and the Statehouse. These factors would be expected to increase foot traffic and gaming revenue.
Meanwhile, the northeast Indiana site near Interstate 69 and State Road 8 would benefit from accessibility to Fort Wayne and nearby Michigan markets, per Yogonet. This location offers growth opportunities while minimizing disruption to current horse racing venues.
The study estimates that relocating a casino downtown could produce revenue roughly eight times greater than Indiana’s lowest-grossing casino. However, it warns that approximately $140 million in revenue may be diverted from racetrack casinos, potentially resulting in a $10 to $17 million annual loss for the horse racing industry.
By comparison, moving a casino to the northeast Indiana site would have a smaller estimated impact on horse racing, with annual losses estimated at $1 million to $1.7 million.
Indiana Casino Relocation Spurs Legislative Debate
Indiana’s 14 commercial casinos collectively produced $3 billion in adjusted gross receipts in fiscal year 2025. The report comes amid increasing competition in the Midwest market from gaming in Kentucky, Illinois and Ohio.
Joe Hoag, executive director of the Indiana Gaming Commission, described the study as a valuable tool for policymakers considering relocation options, noting that the choice of location is critical for attracting gamblers, according to the Indiana Capital Chronicle.
Responses from state lawmakers were mixed. State Budget Committee Chair Sen. Ryan Mishler expressed doubt about whether relocating casinos would be effective without addressing management issues.
His comments follow recent labor disputes highlighting internal tensions within Indiana’s casino sector. Recently, casino workers struck over a union dispute at Horseshoe Indianapolis in Shelbyville.
Rep. Greg Porter raised concerns about the complexities related to tribal gaming sovereignty, as outlined in the report. Sen. Andy Zay, who authored the legislation creating the study, called it a constructive step toward economic development, particularly for northeast Indiana.
Conversely, Sen. Tyler Johnson criticized the northeast Indiana proposal, arguing the study focused too narrowly on financial metrics and did not fully evaluate impacts on traffic, social factors and infrastructure.
