Yes, you do (have) give them your credit card to reserve the seat. However, they (your credit card company) won't charge you like a cash advance, it's like a merchandise purchase (at least that's how it's been for me in the past).
As for Casears Indiana, well, they will charge you an arm and a leg for a room, but they are nice rooms (even if the walls are paper thin) overall with nice beds.
I've never known them to offer a poker room rate, like the rest of the Harrahs properties do, but you can always call and ask.
Otherwise, you're only other choice is Downtown Louisville, KY, or New Albany, IN (both about 10 to 12 miles from the casino).
While I've not stayed there myself, I've heard that the Holiday Inn in New Albany is really nice (and the rates are normally under 100 bucks a night).
http://www.ichotelsgroup.com/h/d/ex/1/en...s%3Dy&ias=y
For myself, I'm a platnium member of Harrahs, so I pretty much get my rooms for free most of the time, and this time I will only pay $69 for all 3 nights because of that factor.