Two long-running casino expansion debates in Indiana and Virginia, both developing over several years, were addressed through legislation this month. However, the results in each case turned out differently than many stakeholders had anticipated or hoped for.
In Indiana, Governor Mike Braun signed HB 1038 into law on 4 March, establishing a new state casino licence. Voters in Allen County, DeKalb County, and Steuben County will decide through county-specific referendums in November whether casinos should be allowed in their areas.
If any of these counties approve the measure, they will be able to invite bids for casino development. The Indiana Gaming Commission must then select a winning proposal by 15 April 2027. The successful bidder will be required to pay a $150 million licence fee and commit to at least $500 million in capital investment within five years. According to the bill’s fiscal analysis, each casino could potentially generate between $170 million and $230 million annually in adjusted gross receipts.
The decision stood out for two key reasons. First, it left out Indianapolis (Marion County) as a possible location, even though a state-commissioned market study had identified it as the area with the strongest revenue potential. Second, the legislation establishes a new casino licence rather than relocating the existing licence from Rising Star Casino in Rising Sun, an idea that had been debated during several previous legislative sessions.
Reconciliation needed in Virginia
In Virginia, both legislative chambers have approved a casino expansion proposal known as SB 756. However, the two versions of the bill contain differences that must still be resolved before the measure can be sent to the desk of Governor Abigail Spanberger. Despite this, supporters remain confident that the legislation will ultimately be finalized.
If approved, the outcome would be somewhat surprising because the bill allows a casino to be developed anywhere within Fairfax County rather than limiting potential locations to Tysons, which had been the focus of earlier expansion attempts that failed in past years.
Tysons, located within Fairfax County, hosts several major corporate headquarters, including Booz Allen Hamilton, Freddie Mac, and Capital One.
Full House relocation morphs into additional casino licence
For the casino industry in Indiana, the creation of a new licence under HB 1038 marks a significant shift from the earlier discussions about expansion.
Full House Resorts, the operator of Rising Star Casino, had spent years seeking approval to relocate the property because of declining performance linked to casino expansion in nearby Ohio and Kentucky. Although the company was unable to gain legislative backing for the relocation plan, its efforts helped ignite a broader debate about possible casino market saturation in the state.
That debate eventually resulted in the passage of SEA 43 in 2025, which instructed regulators to commission a study to identify two potential relocation destinations. The report, prepared by Spectrum Gaming Group, concluded that downtown Indianapolis and the Fort Wayne area were the most promising locations. The findings encouraged an attempt this year to introduce a casino in Indianapolis, but the proposal ultimately lost momentum because existing operators raised concerns about market cannibalisation.
Lawmakers instead opened the process to bids from Allen County, which includes Fort Wayne, along with DeKalb County and Steuben County. Even so, Governor Mike Braun reportedly would not have approved the measure without including local referendums, according to WANE-TV, a news outlet based in Fort Wayne. All previous casino developments in Indiana have been approved through voter referendums.
Meanwhile, Full House Resorts is largely left to pursue its own path, as the Rising Star licence will not be moved and the company would need to compete for the newly created licence if it wants to operate another casino.
“This legislation gives our region the chance to develop a half-billion-dollar resort-style destination that could create jobs, attract tourism and bring significant investment to northeast Indiana,” bill sponsor Justin Busch told WANE.
Fairfax casino bill opposed locally but might still pass
The effort to expand casinos in Virginia has followed a similarly complicated path. What initially began as an attempt to establish a casino in Tysons has gradually expanded into a proposal covering all of Fairfax County. Previous legislative attempts to designate Tysons as an eligible casino location failed several times, with critics pointing to concerns about market competition and national security.
Back in 2019, Virginia authorised casino development in five cities: Bristol, Danville, Portsmouth, Norfolk and Richmond. However, voters in Richmond rejected their proposed casino twice in local referendums, and the final available licence was eventually awarded to Petersburg instead.
Located roughly 15 miles west of Washington, D.C., Tysons has also pushed to become a casino host city. Nevertheless, industry stakeholders have warned against expanding the market too rapidly, particularly after Richmond’s repeated rejections. The area’s closeness to the U.S. capital has also sparked national security concerns, with intelligence officials cautioning that government workers and contractors could pose potential risks if they became vulnerable to gambling addiction or outside influence.
This year, lawmakers changed course by removing language in SB 756 that specifically targeted Tysons and instead made the entire county eligible for casino development, provided voters approve the plan in a referendum. Even so, the move may ultimately prove ineffective, as local backing appears very limited. A growing coalition of community organisations is urging Governor Abigail Spanberger to veto the bill if it reaches her desk.
The measure passed the Virginia House of Delegates by a vote of 59–37, with one abstention. Notably, all three lawmakers representing Fairfax County voted against it. In addition, the county’s Fairfax County Board of Supervisors has indicated it may refuse to place the issue on a referendum ballot if the legislation remains unchanged.
“If the bill moves forward in its current form, I will not support putting it to a referendum,” board chair Jeff McKay told WTOP. “I’m not going to ask residents to vote on something we believe is not a good deal for them.”
