Allowing riverboat casinos to relocate inland is among options that would help protect Indiana casinos from competition from neighboring states, according to findings of a study released by a legislative panel Tuesday.

The Gaming Study Committee's report also concluded that the city of Gary and the state could be best served by allowing one of two Gary casinos on Lake Michigan to become land-based. Proponents say an inland casino at a major intersection of interstates in the city would draw more customers.

The remaining Gary riverboat license would be returned to the Indiana Gaming Commission.

"As in any other industry, particularly those that cater to retail consumers, it's all about location," said Sen. Luke Kenley of Noblesville, the Republican co-chairman of the study committee. "We think their ability to go to a better location would increase their volume and the amount of business they could do."

Kenley stressed that the findings were not legislative recommendations. But they could serve as the basis for several gambling bills to be considered when the full General Assembly convenes in January.

Among other findings:

_ If riverboat casinos are allowed to relocate inland, they should pay a fee to the state.

_ Expanding gambling to new cities or counties is not in the best interest of the state or the industry.

_ There is no compelling reason to alter the structure of riverboat wagering taxes.

_ Requiring casinos at the state's two pari-mutuel horse tracks to pay taxes on revenue paid to the racing industry and purses for breed development is an undue burden.

_ Requiring riverboat casinos to have marine navigational systems harms their ability to compete.

The committee has spent several weeks studying gambling issues, in large part because of gambling expansions or proposed expansions in Illinois, Kentucky and Ohio.

Ohio voters approved a ballot issue last month to allow one casino each in Cincinnati, Cleveland, Columbus and Toledo.

An analysis by the Indiana Legislative Services Agency, the General Assembly's nonpartisan research arm, predicts three casinos in southeastern Indiana _ which rely heavily on patrons from the Cincinnati area _ would be hit the hardest by the new competition.

The Hollywood Casino in Lawrenceburg, Grand Victoria Casino in Rising Sun and Belterra Casino near Vevay _ all downstream from Cincinnati _ could lose 38 percent of admissions and $260 million in gambling revenues in the first year after the Ohio casinos open, amounting to a $93 million cut in the taxes they pay, according to the analysis.