Sheriff Greg Ewing says the child was blind and weighed less than 15 pounds.
An Illinois Department of Corrections spokeswoman said Peterson was transferred but declined to say why or where, citing security.
City officials, including Mayor Duke Bennett, supported the casino.
Vigo County commissioners announced Tuesday the jail will be located on the former International Paper property along the Wabash River.
Robyn Morton says her bill this month was for $240, compared with $90 to $150 she normally pays.
Some residents say the proposed casino won't help the economy in the long term.
Mayor Bennett says the proposed new casino is a private development and those opposed to it should contact state legislators.
We're getting ready to visit with Terre Haute Mayor Duke Bennett for Wednesday's show. Submit your questions by noon today!
Opponents of the bill say a new casino will decrease revenue and steal competition from exsisting casinos around the state.
Construction on the project began in 2003 and was beset by numerous delays.