If casinos are ever approved in Kentucky the move could cost Indiana's state government more than $200(m) in casino tax revenue.

That's what a fiscal analyst from the state's legislative services agency told a group of lawmakers Monday.

Governor Steve Beshear wants to legalize either slot machines or casino-style gambling at racetracks throughout that state and proposals in Ohio would authorize four full-fledged casinos and allow more than 17,000 slot machines at the state's horse tracks.

Indiana's 13 casinos generate about $900(m) a year in state and local taxes.

If the proposals in Kentucky and Ohio are approved, estimates are Indiana could see that revenue drop by 25% or more.