Indiana Senate Passes House Bill 1038 After Narrow 26-22 Vote
The Indiana Senate in Indianapolis has passed House Bill 1038 by a 26-22 vote, advancing plans for a new casino in northeast Indiana.
LISTEN TO THIS ARTICLE:The decision pushes the proposal closer to reality and intensifies competition within the state’s gaming market.
The vote followed days of debate and amendments, with lawmakers divided over economic impact and local consent.
A One-Vote Margin
House Bill 1038 cleared the chamber Tuesday after what observers described as passionate floor arguments. Sen. Travis Holdman (R-Markle) cast the decisive vote in favor of the measure, allowing it to pass by a narrow margin.
State Sen. Justin Busch, one of the bill’s sponsors, framed the proposal as a disciplined and regulated opportunity for the region. He cited independent analysis projecting $330 million in annual revenue, more than 7,500 short-term construction jobs, and roughly 2,000 permanent operational roles. Busch also argued that Indiana currently loses gaming revenue to neighboring Michigan and Ohio, estimating that a northeast property could retain in-state spending while attracting additional out-of-state play.
The amended version allows Allen, DeKalb and Steuben counties to pursue the project. Wayne County, previously considered as a relocation contender, was removed in the latest revision.
Economic Promise Meets Skepticism
Supporters emphasized tax projections, including more than $170 million in annual tax revenue, with approximately $66 million flowing to state coffers. Local business groups in Fort Wayne and Allen County have expressed support, viewing the project as a catalyst for broader development.
Critics, however, questioned the quality of the jobs cited in economic forecasts. State Sen. Liz Brown (R-Fort Wayne) argued that many casino roles are hourly positions unlikely to exceed $40,000 annually. She said Indiana should focus on attracting higher-paying industries capable of drawing long-term talent.
The debate reflected a broader tension within Indiana’s gaming strategy: how to expand revenue without undermining existing casinos or reshuffling what some lawmakers call state assets.
More Regulation
Referendum Debate Intensifies
The most contentious issue remains the absence of a required voter referendum. Unlike previous casino relocations in Gary and Terre Haute, House Bill 1038 does not mandate a public vote in the host county.
State Sen. Tyler Johnson (R) said town halls in DeKalb County revealed overwhelming local opposition. He described lines of residents forming around rural blocks to speak against the proposal.
Brown echoed concerns that removing a referendum eliminates a traditional safeguard. “Most of these things have had a referendum,” she noted, suggesting the omission may influence public perception of the project’s legitimacy.
Supporters counter that local approval will come through a county resolution and a formal letter of support from the mayor. Busch said Fort Wayne and Allen County leadership have already indicated backing for the measure.
Next Steps in the Legislative Process
The bill now returns to the House for consideration of the Senate’s amendments. Lawmakers will review the updated language in caucus before determining whether to accept it or request a conference committee. If both chambers ultimately agree, the measure will proceed to the governor’s desk.
This vote follows the earlier Senate debate detailed in our previous coverage of the House Bill 1038 final vote stage, marking the transition from deliberation to formal approval.
For operators, the narrow margin signals political sensitivity around future gaming expansion. For local communities, it raises questions about development, revenue distribution and community input.
With the bill advancing, Indiana’s gaming landscape appears poised for another shift, even as debate over its long-term impact continues.
RELATED TOPICS: Regulation
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