The Pokagon Band of the Potawatomi Indians applied to the Department of the Interior three years ago to build a casino near South Bend.
Indiana Gaming Commissioner Ernest Yelton says an environmental study is expected to be complete in another year. Once it is, he says, the state is required to negotiate "in good faith" the terms of operation.
And he says normal wagering taxes don't apply. The state is only allowed to reach a deal to recoup expenses.
"They're also not subject to a lot of tax regulations that casinos are today, which gives them a really huge advantage when it comes to their marketing expenses," Yelton says.
While Yelton says the Pokagon Band has indicated it wants a full-fledged casino, federal law allows it to open a facility limited to electronic bingo machines with no state input at all.
Yelton notes there could be more out-of-state competition as well, with the November election defeat of Illinois Governor Pat Quinn, who had opposed proposals for a Chicago casino.
Yelton says it's unclear where new Illinois Gov. Bruce Rauner stands on the issue.