The federal Gambling Devices Transportation Act prohibits the use of any gambling device on a voyage on any of the Great Lakes, thus prohibiting riverboats on Lake Michigan to cruise and conduct gambling activities. In October 1996, however, the Johnson Act was amended to allow Indiana to permit gambling activities on a boat that embarks from Indiana and does not leave Indiana's territorial jurisdiction.

To obtain a license to operate a riverboat, an applicant must submit an application to the Indiana Gaming Commission with a non-refundable $50,000 application fee to cover the costs to conduct a referendum in an authorized county. If approved by referendum, other applicants may file an application for a license in that county, but must reimburse the original applicant its pro rata share of the cost of the referendum. The local municipality then distributes Requests for Proposals ("RFPs") and, at its option, may conduct local hearings to determine which applicant will be recommended. Although not binding, the Commission has largely selected the applicant that was endorsed by the municipality. 

The investigation process is two-fold. First, the applicant and its key persons are investigated for suitability by Indiana Gaming Commission agents. Second, the applicant is investigated for its financial stability and business probity.

All suppliers and manufacturers of gaming equipment must be licensed by the Commission. The Commission has deemed the following equipment to directly affect gaming: electronic gaming devices, chips, tokens, cards, dice, roulette wheels, keno balls, number selection devices, and shuffling devices.

An applicant for a suppliers license is required to submit a non-refundable $5,000 and an annual $5,000 license fee. Upon a preliminary investigation, the Commission has the discretion to issue a temporary license which allows a supplier to conduct business with owners.