Pinnacle Entertainment has decided to cancel a planned $45 million expansion of the Belterra Casino and Hotel due to Indiana legislature’s decision to allow slot machines at two horse tracks. The hotel is located along the Ohio River in southeastern Indiana’s Switzerland County.

“It’s going to take just enough business off the river that it’s going to leave a dent in the revenue and affect the job market and affect capital investment,” Larry Buck, Pinnacle Vice President and regional manager explained. The company said in a press release that the money for the riverboat casino would be allocated to other markets.

The new laws will allow up to 2,000 slot machines at each horse track in Anderson and Shelbyville. The gaming machines are expected to help the horse racing business and provide funds for property tax relief. However, Buck said that Pinnacle’s resolution is only an example of the capital investment that is going to be made due to the regulations.

The projected expansion of the Belterra Casino Hotel would have added a tower with 250 rooms to the existing building.