Could new land in trust deal impact Full House transfer to New Haven?
We seemed to have opened a veritable Pandora’s Box with our exclusive report that Full House Resorts, Inc. was exploring a legislative move of its tiny and struggling Rising Star Casino Resort to the City of New Haven in Allen County.
Officials in New Haven are giddy over the prospect of a new economic development cash cow that would fit its new entertainment destination footprint. But they’re not counting on a kitty from a new casino cash cow quite yet as officials in Ohio County and Rising Sun contemplate the potential loss of their largest private taxpayer after a hard-fought battle to land it three decades ago. However, officials in the host community have known for the past decade that their casino vessel was floating on thin ice, and they are looking to minimize any potential long-term loss with maximum short-term benefits.
Meanwhile, always-skeptical lawmakers are looking to educate themselves on what this would mean for the communities involved, state coffers, the competitive balance, and assessing the propriety of the deal within the context of state budget philosophy.
At the same time, Full House is winding down involvement with another small property in favor of bigger projects, and awaiting transition to a new permanent facility in Illinois that could spin off some largesse that could be used to help fund an OC buyout that would let it leave the crowded Cincinnati market.
But there’s one other variable that entered the picture with little attention in June. As one Indiana tribe in Illinois seeks to block Full House from opening its permanent casino in Waukegan, Illinois, another may pose an impediment in New Haven.
Miami Tribe of Oklahoma Joins the Picture
We’ve learned that trust status has been approved for 45 acres of land in Kiihkahyonki for the federally recognized Miami Tribe of Oklahoma. In case you don’t immediately recognize Kiihkahyonki, that’s the tribe’s name for Fort Wayne, which abuts New Haven about two miles from the Summit City’s downtown.
The parcel of land, known to the tribe as Peehkahkionki (the beautiful place) was purchased by the tribe in 2021 to serve as a community gathering and education space and as the new location of its Cultural Resources Extension Office (CREO) in the homeland region.
The Miami Nation, the Miami Tribe of Oklahoma, was forcibly removed from its Indiana homeland in October 1846. After 178 years, the tribe says it now celebrates the return of this parcel of land to trust status, and marks the achievement as another significant step in its cultural revitalization work.
CREO was established in 2015 by purchasing a 10-acre property on Trentmann Road in Fort Wayne to provide tribal members living in the lower Great Lakes region an opportunity to reconnect with their myaamia history, language, and culture. Within six years, the tribe explains, the property could no longer support the growing cultural needs of the local myaamiaki community. Tribal leadership moved to sell the Trentmann property and began searching for a new CREO home. The new parcel was purchased in fall 2021. Located northwest of Fort Wayne on Fritz Road, peehkahkionki (beautiful place) is a 45-acre property that includes a 3.5-acre pond with 13 acres of woods.
A history lesson for you: About 185 years ago, the Miami Tribe of Oklahoma and the Miami Nation of Indiana were part of one larger tribe. The Miami Nation of Indiana has tried unsuccessfully for several years to gain the federal recognition needed for pursuing gaming. Their federal court efforts have fallen short, and state officials have been unwilling to help them in a quest for congressional recognition. They have investigated potential gaming sites in Boone County.
By the late 1990s, the Miami Tribe of Oklahoma had fallen upon hard times after being exiled from Indiana to Kansas and then Oklahoma, and, as we wrote 27 years ago, would like to use gaming as a means to improve their economic lot, while contributing to a depressed area. They had been investigating sites in Indiana and Ohio, and settled on Vigo County back then.
While there’s no word as to whether the Miamis plan to seek federal approval for a casino in Fort Wayne, longtime readers of your favorite gaming newsletter will recall previous attempts by the Miami Tribe of Oklahoma to enter the Hoosier gaming milieu.
The first foray came in Gary back in 1995 when Don Barden and Donald Trump were having issues securing the Buffington Harbor property, and then-mayor Tom Barnes (D) sought to site the casino inland at Burns Ditch – effectively a non-starter under the law as it was written then, but that seemingly problematic detail didn’t deter hizzoner from pursuing a deal with the tribe at what is effectively now the site of Hard Rock Casino Northern Indiana.
When that deal was ditched, we told you early in 1997 that we learned the Bureau of Indian Affairs was processing a request to put 5.4 acres of land in trust southwest of West Terre Haute in Vigo County for a land-based casino that would be operated by the Miami Tribe of Oklahoma. The Sugar Creek Township site was adjacent to an I-70 interchange, and close to the Old National Road, U.S. 40 – just a chip’s throw from where the original Terre Haute Casino Resort was supposed to be sited. The tribe was also talking with the Governor’s Office back then about the state’s interest in negotiating a compact with the Miamis.
The Miamis’ effort a generation ago was a result of a serendipitous search by some members of the Terre Haute community and the Indians. The two sides came together while a Vigo County group was quietly searching for a gaming-related project, and the Miamis were seeking to return to their ancestral homelands.
In case you’re wondering why you haven’t heard about a potential Fort Wayne Miami Nation casino project – if one is even under contemplation, and we don’t know if the tribe is even interested – could be because the tribe wants to keep things under wrap as long as it can. The tribe retained a local law firm in Vigo County to handle the work there, and even the Pokagon Band of Potawatomi Indians, who were concurrently looking for land in trust in Indiana ta the time were caught off-guard by our 1997 report. “Well, I’ll be damned,” one tribal representative said when we mentioned the Miami move.
When the Miamis were exploring the Terre Haute opportunity, they did so without a gaming partner, and we were told that they would prefer to use local bank financing to undertake the casino project. A Fort Wayne Native American casino could also be developed by the tribe with a commercial operator stepping in to run the property.
In May 1997, the Governor’s Office sent a 10-page letter to the Bureau of Indian Affairs expressing the opposition of then-Gov. Frank O’Bannon (D) to “any further expansion of gambling in Indiana,” and, more specifically, to the request of the Miami Tribe of Oklahoma to build a casino in Indiana. The letter from the governor’s counsel did, however, detail a few elements that the State would want to have in place in any Native American casino deal.
So that’s a new factor to contemplate, one that could be significant – should the Miamis decide to pursue a casino – or meaningless if they have abandoned their generation-old plans.
The Latest From New Haven
While WFFT-TV in Fort Wayne tells listeners that “Rising Star Casino Resort, located in Rising Sun, has filed paperwork to
move to New Haven,” that doesn’t quite seem to be the case – particularly given that legislative approval would be required.
As we told you, city officials in New Haven are enthusiastic about the prospect of being the new haven for a relocated Rising Star.
Zach Washler, the community development director for the city of New Haven, tells WANE-TV in Fort Wayne that Mayor Steve McMichael (R) is “on board and has spoken with City Council members to gauge their support.”
We had mentioned that the city of some 16,000 was looking forward to hosting the Fields of Grace sports complex and International Harvester Museum at what would likely be the same highway interchange at I-469 being eyed for the casino. “It adds a tourist destination, social hub, and an entertainment venue positively impacting the economic landscape of New Haven,” Washler tells the station.
Understanding the potentially controversial nature of the proposal (there was some state and local opposition in fall 2009 when then-Fort Wayne Mayor Tom Henry (D) unsuccessfully tried to persuade the Interim Study Committee on Gaming Issues to allow Fort Wayne to hold a speculative gaming referendum; Steuben County also failed to convince lawmakers despite a major high-powered push), New Haven plans to reach out to residents and local business owners. “We are sensitive to the community, and we will have community listening sessions once more information becomes available,” Washler tells WANE -TV of a forthcoming “listening tour.”
After our story, WANE also caught up with Full House Chief Development Officer Alex Stolyar, who had led the efforts over the past decade to site in Terre Haute or Indianapolis. Asked about the likelihood of the move, “ ‘I have no idea,’ he laughed. ‘But based on the level of excitement and support that we’ve seen here locally so far, we’re optimistic.’ ” Stolyar was in New Haven Tuesday, August 27, “to meet with local development officials, who were also optimistic. ‘We’ve received a lot of comments in person, and overwhelmingly, they’ve been positive,’ said Zach Washler .…” “We’re going to continue to pound the pavement and talk to as many legislators as we can to get the story out there,” Stolyar adds.
New Haven continues to tout the fact that it would be the state’s largest untapped casino market, effectively 90 minutes from other casinos (which may be a tad generous given rural interstate speed limits).
Will the Sun Set on Ohio County and Rising Sun?
“We are exploring a pathway to relocate our Rising Star Casino license to a new casino in New Haven, Indiana. Everything is very preliminary right now and in early discussions,” Full House tells WKRC-TV Local 12 in Cincinnati.
An official statement from the City of Rising Sun regarding the proposed relocation of the Rising Sun Casino gaming license was issued on Friday, August 30:
Full House Resorts, Inc., parent company of Gaming Entertainment (Indiana) LLC, has notified Ohio County and the City of Rising Sun of their preliminary plans pertaining to the relocation of the Rising Star Casino gaming license to the City of New Haven in the Fort Wayne area. Because of the complex nature of this process, neither the City nor the County are in a position to offer any comments at this time.
Make no mistake about it: officials and residents of the city and county are extremely concerned about the prospect of losing their largest private taxpayer, and a business that generates hundreds of visitors to the community on a daily basis. They hear Full House profess to want to make them whole, but worry about how sustainable such a revenue stream might be for them without a casino.
During the licensing hearings in 1995, there was some discussion of how the retail district in Rising Sun should not be transformed into an unsustainable “downtown Disneyland,” and the area retained its original charm . . . in part because the downtown did not grow as casino patrons, as was the case with most other casino communities, largely confined their visits to the casino complex, perhaps only stopping in town for gas or a drive-through fast-food meal. Rising Sun and Ohio County are more dependent upon their casino than any other host community.
One item largely overlooked y most: The state’s smallest casino operates on the state’s oldest gaming vessel (or platform), one which will soon require a move to land or a major overhaul, but which could be delayed by perhaps five years if the end was in sight. The property also caters to an older demographic of gamblers, largely retirees drawn by the small staff which knows regulars well; the RV park which makes it easier for that group of travelers to visit; and those who prefer slots to table games, because the property only offers four types of games at 16 tables (vs. six types of games at 87 tables at the next-closest casino in the other direction from Cincinnati, Caesars Southern Indiana. The July table drop at Rising Star was $1.40 million vs. $17.81 million at the Harrison County casino.
This will not be an easy break, if a parting will occur. Dan Monk of WCPO-TV in Cincinnati, who has covered the casino since it was first licensed, calculates that “The move would have a huge
impact on the Ohio County community of Rising Sun, where local governments claimed nearly $6 million in riverboat gambling receipts last year and a community foundation distributed $47 million in casino-enabled grants since 1997.”
Monk also notes that the Indiana Gateway database “shows Rising Sun with $2.9 million in riverboat receipts in the 2023 calendar year. That’s 18% of the city’s total receipts in the 12 months ending last December.”
We continue to hear under no circumstances would Full House be in a position to close operations in Rising Sun and open in New Haven before 2028 (and that would be predicated upon 2025 legislative approval, a major uncertainty today), so the routine cash flow enjoyed by the host community would continue along whatever trajectory would be expected for perhaps as long as five years before any other sort of compensation would then come into play.
There still is talk about any, all, or a combination of several options to make the host community whole (revenue could include wagering tax revenue, local development agreement payouts, as well as property tax dollars and foregone local income tax dollars):
- One-time payout of as many as five years’ worth of revenue
- Annual payouts of regular revenue for several years
- Perpetual annual payments from the new casino
- Funding reuse consultants for repurposing the 288-acre property
- Donate pavilion, hotels, real estate, ferry, and golf course to locals
Indeed, even New Haven is on board with the effort, as community development chief Washler tells WCPO’s Monk, “We’re going to work to make them whole. This is not going to be something where anyone is harmed by moving.” That leads us to believe that there could be continuing payments from New Haven to Ohio County and Rising Sun, akin to what we saw from Terre Haute under the 2019 omnibus gaming package.
You will also hear nearby communities weighing in because Rising Sun’s original bid focused on regional revenue sharing, a novel idea Back in the Day precipitated by concern from nearby counties and communities that the tiny host would be reaping oversized revenues while they still had to cope with things such as policing roads leading to Ohio County and wear and tear from what was originally thousands of visitors on a given day with just a veritable handful coming from within the county.
Full House is Full On
Full House Resorts is all-in on a potential move from Rising Sun to New Haven, but is abundantly clear that it will not happen without the city and county being made whole.
One big move this week caught our eye: Full House on Tuesday sold its Stockman’s Casino in Fallon, Nevada to another casino operator. What Full House President and CEO Dan Lee said in revealing the sale is instructive: “As we continue to grow in size, we find it prudent to focus on the larger properties in our portfolio.” How small was the property? The final sale price was a mere $9.2 million, with the real estate alone valued at $7 million.
While Rising Star is larger in size, offers a larger return to the parent, and carries a greater valuation, it continues to move down the list of corporate priorities as smaller properties are divested and others see greater investment (RS locals have long bemoaned a lack of new capital investment and the loss of treasured amenities in recent year).
Full House is now looking toward its larger properties (and forthcoming Waukegan flagship) as the heart of the company . . . and understanding that the success of these properties will also help them make the former Rising Star hosts whole.
The Importance of Elements in the Process
As we’ve noted, there is no assurance of success in this process. In practice, nothing can be done without a sign-off from a satisfied cadre of local officials in Ohio County and Rising Sun. Absent a full-throated local endorsement of the departure, lawmakers and state gaming regulators will be reluctant to even consider a move. A positive local agreement is a condition precedent to even approaching lawmakers.
While Full House and New Haven would like this to be a 2025 legislative agenda item, there is no assurance that the informal leadership gaming moratorium will be lifted, particularly as new federal indictments related to the Hoosier gaming world continue unabated (and the U.S. Department of Justice policy of not issuing indictments within 60 days of an election may be fodder for those who continue to insist that charges are imminent explaining away a lack of action.
Assuming that gaming bills will be heard in the 2025 session, there is a lot of pent-up demand, and an omnibus bill would likely be authored by House Committee on Public Policy Chair Ethan Manning (R) of Logansport. That bill could include online casino authorization, online lottery sales for the Hoosier Lottery, electronic pull-tabs for veterans service organizations, and expanded credit card sales for certain charity gaming activities.
We would not expect a license transfer request to be part of an omnibus bill at the outset, but rather be relegated to a separate bill that would start in the Senate, where gaming bills have traditionally proven tougher to pass . . . and which this week saw the resignation of a key player in the 2019 omnibus bill, former Sen. Mark Messmer (R) of Jasper, who stepped down to devote more time to his CD 08 campaign for Congress.
Complicating things: the senators representing both New Haven and Ohio County are in their respective first terms, have yet to build up clout, and neither serves on the Senate Committee on Public Policy, the entry portal for gaming legislation in that chamber.
New Haven’s senator is freshman Sen. Tyler Johnson (R) of Leo, who replaced anti-gaming Sen. Dennis Kruse (R) of Auburn – and who has largely adopted the Kruse practice of routinely voting against gaming measures. “I am typically very cautious and concerned about the impact of gambling,” Johnson messaged WANE-TV. “There will be robust debate amongst legislators at the statehouse before any steps are taken to move forward and there is no guarantee that legislators will support moving a gambling license to New Haven,” he cautions.
Rising Sun is represented by Sen. Randy Maxwell (R) of Guilford, caucused into office in 2023 and yet to face the voters. He also represents the casino communities of Lawrenceburg and Switzerland County, which may not be disappointed to potentially split the $3.25 million or so per month that would be left on the table by Rising Star should it leave, and could also look to snatch up some of the more experienced casino employees left behind.
Will there be more support for a license move on the House side?
Ohio County is currently represented by Rep. Randy Lyness (R) of West Harrison, who did not seek reelection this year. That means a new House member could be called upon to make a tough call locally (and that House district similarly covers all three of Indiana’s Cincinnati market casinos). Attorney Garrett Bascom (R), a Dearborn County native and lifelong resident, is widely expected to win that open seat in November, but comes into the process with no clout from service.
New Haven is represented by Rep. Dave Heine (R) of Fort Wayne, whose son-in-law once ran the Winner’s Circle in New Haven, worked for a casino company, and remains connected to the industry. Will he be protective of the satellite wagering facility and sportsbook? Will he prefer a casino? Will he look to strike a local balance?
If the legislation ends up combined with online gaming, that could prompt opposition from Senate President Pro Tem Rodric Bray (R) of Martinsville, who has never been friendly to online expansion.
Beyond that, details matter. The 2015 “satellite casino” sought by Full House for Terre Haute –a shift of its “unused capacity” met opposition because other operators were not to be afforded the same privilege. One major licensee pulled out all the stops to kill it because it would not also allow that operator to move . . . so two years later when Full House pushed for a Terre Haute license to be authorized, it was fully on board with a competitive bidding process for that new property (and ultimately effectively lost the Indiana Gaming Commission licensing decision by one vote).
Full House will likely have to agree to allow others to compete (we’ve heard from at least one other Indiana licensee interested in a Summit City switcheroo), and if the process is opened up to others not currently licensed in Indiana, that could add new elements to the game (recall that an operator totally new to Indiana threw its hat in the ring for the Vigo County license).
And, as we alluded to earlier, there will also be some philosophical concerns evinced. The key selling point for a Full House move to New Haven will be additional tax dollars (and a few more jobs). House Speaker Todd Huston (R), however, has been adamant that lawmakers should not allow the need for dollars to drive state policy. This will be a difficult budget session though, with the state looking at shortfalls for the first time in many years, and solons will be searching for more than loose change among the state couch cushions.
We had an opportunity at the end of August to ask the Democratic nominee for governor, Dr. Jennifer McCormick (D), about the expansion of gaming to specifically include online Hoosier Lottery sales, online casino gaming, electronic pull tabs for the veterans services organizations, and potentially local option video gaming terminals for certain establishments . . . and she was much more enthusiastic than Speaker Huston about the revenue potential.
Yeah, I support that. I think there’s a lot of potential there for revenue. So I do support those efforts. I think, too, that, you know, it’s happening in, you know, other areas that we can learn from. But I do support the expansion. I have to admit, I am not a huge gambling expert. However, I do appreciate the revenue that it brings into Indiana, and I just think there’s a whole lot there that we could take advantage of at a time where I get this question a lot, how are you going to afford that? …. How are we going to afford to do some of the things we’re going to do without just skyrocketing our taxes? And so I do believe looking at some of those options is a smart way to go.
We also asked Dr. McCormick specifically whether she favored the transfer of the Ohio County casino license to New Haven if the host officials feel adequately compensated for the potential loss of their casino, and she was open to the idea.
I’m not an expert on this, I will admit that. But what I will say is I will work with those local officials to see if that makes sense, if that is a responsible you know, business undertaking. And so I’m not necessarily opposed to it, but I’m not sitting here saying, “Yay, let’s do it.’ I would have to do a lot of homework back backlogging that, but also to working with those local officials who are, you know, in the middle of that so we can make a really good decision. So I will have to do some more looking into that.
So as we have sought to emphasize, there is an abundant measure of moving parts here, public, private, and now potentially tribal as well. We’ll be here for you to chronicle everything as it proceeds, just as we have in these pages for the past 31 years