State of Play
- A new state-commissioned report marks Auburn, IN, as a top contender for relocating a struggling casino, alongside downtown Indianapolis.
- This development is significant for gamblers and industry observers, as it may reshape regional gaming landscapes and tax revenues.
The Indiana Gaming Commission tasked Spectrum Gaming Group with evaluating potential sites for relocating the Rising Sun Casino, following legislation signed into law by Gov. Mike Braun. The casino is currently located near the border with Ohio, in the southeast corner of Indiana.
The report analyzed four Indiana locations and identified a site near Interstate 69 and State Road 8 in Auburn, in Northeastern Indiana, as one of the best options for a new casino.
The report highlights that the Auburn site would generate $204.3 million in revenue and $61.1 million in state tax annually, while having a minimal impact on nearby horse racing venues.
Indianapolis site would have been most profitable
Downtown Indianapolis ranked highest in potential profitability, with projected annual revenues around $493 million and significant state tax receipts. Indiana online casinos are not legal despite discussions being held in the state legislature over the last few years.
Other studied locations – Richmond and Monticello – showed less gaming demand compared to Auburn and Indianapolis. Some local opposition exists, notably from State Sen. Tyler Johnson, who represents most of Auburn.
The report’s findings carry important implications. Relocating the Rising Sun Casino is projected to boost tax revenues, despite an estimated $1.1 million annual loss from declining local gambling, as displaced players may opt for out-of-state options.
Tribal casino could adversely impact Auburn plans
The Auburn location offers a balanced mix of revenue potential and minimal disruption to existing gaming or racing operations, which is favorable for both state coffers and market stability. However, the prospect of a tribal casino by the Miami Tribe of Oklahoma on nearby land clouds these projections.
A tribal casino could drastically lower commercial casino revenue estimates in Auburn, reducing annual revenue forecasts from $204.3 million to $43.2 million and state tax revenues from $61.1 million to $6.1 million.
Additionally, exclusivity agreements with the Pokagon Band of Potawatomi restrict the development of new commercial casinos in parts of Northern Indiana, further affecting market dynamics.
Opposition could block the casino
The gaming landscape in Indiana remains uncertain, with legislative debates ongoing and potential tribal developments pending.
Stakeholders should closely monitor any further regulatory decisions and market responses, particularly regarding tribal casino plans and local political opposition.
The full study is available on the Indiana Gaming Commission’s website, offering detailed insights into the state’s evolving casino market. What will make this even more interesting is if Indiana ever legalizes real-money online casinos.
Based on reporting by WPTA21.