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.
Indiana's revenue growth is on pace for the state’s surplus to exceed $2 billion by next summer.
Indiana's economy appears to be improving, based on the latest jobs report, and that could foreshadow higher state revenues for next year.
Indiana collected $24 million more in taxes than it forecasted.
The Indiana State Fair brought in about $100,000 less than expected, which officials attribute to low concert attendance and a hot summer.
Indiana's casinos have taken a hit because several casinos have opened in cities close to the state's border.
The state collected $23 million more than anticipated last month, nearly 2 percent ahead of projections.
State officials say they projected the shortfall because August 2012 had one fewer payroll day.