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Economic impact of Terre Haute casino depends on hiring and regional tourism, according to researcher

By Bente Bouthier

Posted December 15, 2023

Churchill Downs proposed rendering of Terre Haute casino

(Courtesy photo)

A new casino is set to open in Terre Haute this spring. It will be the fourteenth in the state.

Adam Scavette, a regional economist for the federal reserve bank of Richmond, studies the economic impact of casinos. He said casinos support economic development like increased local retail sales, tax revenue, and increased employment. But those benefits are curbed by the presence of other nearby casinos and depend largely on the conditions of the local economy.

Because of that, he said a monopoly in an area isn’t necessarily a bad thing.

“So in Indiana they wouldn't have a statewide monopoly, but maybe they would have a county monopoly on gambling.”

He said larger casinos boost host economies, like in Las Vegas or Atlantic City, because they bring outside revenue in from tourists. So, the amount of economic benefit also depends on who is using the casino.

Scavette said most casinos in the Midwest, established in the 1990s and 2000s, cater to regional markets.

“So you're not necessarily generating more tax revenue for the state, if it's just substituting away from your previous spending habits.”

The Terre Haute casino is expected to create 1,000 jobs, about half of them fulltime. Scavette said who is hired will also be important. With more people hired from out of town, demand for services will increase which can have a multiplier effect and boost the economy.

But that increase can also mean a hike in cost of living and housing prices for locals.