Voters in Allen, DeKalb and Steuben counties rejected referendums on Tuesday that would have allowed a casino operator to propose a new gaming facility in northeast Indiana, with state law now barring those counties from holding the vote again.
The ballot item, Public Question No. 3, asked residents: “Shall inland casino gambling be permitted in (your) county?”
In DeKalb County, nearly 65% of voters, or 7,374, opposed the casino, according to unofficial final results reported by the Fort Wayne Journal Gazette.
Opposition in Steuben County topped 58%, which amounted to 6,234 votes. In Allen County, nearly 60% of voters, or 61,310, cast ballots against the possible development.
A license created by state lawmakers
House Enrolled Act 1038, which Indiana lawmakers approved earlier this year, authorized a new license for an inland casino in one of the three northeast counties.
The law also eliminated one unused “racino” license, a category that permits horse-racing wagering with slot machines.
Casino developers were to submit applications to the Indiana Gaming Commission by December 1. When a county rejects the casino, however, the law provides that “a second public question under this section may not be held in that county.”
Lawmakers left Indianapolis off the list of eligible locations because a casino there would take business from two existing properties in Shelbyville and Anderson.
Some legislators also preferred the northeast corner of the state because no casino serves the area, and a facility there could draw patrons from Ohio and Michigan.
Approval at the ballot box would not have guaranteed a project, since no casino operator was certain to step forward with a plan.
Financial commitments for a prospective operator
The selected developer would have needed to invest at least $500 million across the casino and non-gaming amenities, including a hotel and at least one restaurant.
At least 60% of that spending was required within two years of license authorization. The developer then had to invest the remainder and complete the development within five years of the start of operations.
The operator would also have paid $150 million to the state in five equal annual installments of $30 million. That total consists of a $100 million license fee and $50 million to support former host communities hurt by casino closures. Additional payments to the host community or the state could also have been part of the deal.
Revenue projections drew business support
An Indiana Gaming Commission study projected that an Allen County casino could generate $204 million in revenue and $61 million in annual state taxes. In April, the Steuben County Economic Development Corp. released a feasibility study with its own case for a casino in that county.
Business groups in Allen County backed the project as an economic development tool. Fort Wayne Mayor Sharon Tucker also supported the proposal and argued that the area could not turn away the revenue at a time when tax reform through Senate Enrolled Act 1 has significantly lowered the amount of tax revenue that local governments receive.
Opponents criticized gambling as a predatory enterprise that would be bad for Hoosiers. They also raised concerns about addiction, bankruptcies and crime that could follow a casino opening.
Fort Wayne turns to other revenue options
After the results came in, Tucker said she and her team will continue to look for other revenue opportunities.
“With the ongoing financial impacts of Senate Enrolled Act 1, particularly the uncertainty of future revenues coming in over time, it’s vital to look for ways to grow and succeed,” she said in a statement. “Having access to additional revenue sources will be needed for continued investments in public safety, local infrastructure, and quality of life amenities.”
“My job as mayor is to continue to explore all avenues for financial growth and replacement revenue to set us on a course for a brighter tomorrow.”