Tax revenues for Indiana were $5 million below expectations in July, the first month of the fiscal year.
Indiana's tax revenue is still $50 million lower than projections with only one month left in the fiscal year.
The March revenue report for Indiana shows improvement from February, but it doesn't make up for previous months' revenues that have fallen below predictions.
February tax revenues were $54 million short of projected levels, putting the state $90 million below expectations for the fiscal year.
December tax collections were more than $40 million above target.
Overall revenues were boosted by a surge in individual income tax collections, which came in more than $70 million ahead.
Legislators already differ on whether the bill amounts to an expansion of gambling.
A bill headed to the House would divert some of the revenue earmarked for local entities, and send it back to the casinos.
January revenues were higher than predicted, but sales tax revenues are falling short of predictions for this fiscal year.
With the state announcing a budget surplus of more than $2 billion, some have called for the state to return funds back to local governments.