Indiana Online Casino Bill Takes Step Forward


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Indiana lawmakers are taking an online casino bill more favorably than last year. 

The House Public Policy Committee advanced House Bill 1432 Tuesday by a 9-2 vote. Legislators discussed the online casino legalization bill for more than three hours. It now moves to the Ways and Means Committee.

“What is the future of gaming policy in Indiana?” Rep. Ethan Manning, the bill’s author and the committee’s chair, said during the meeting. “How can we leverage the assets we already have, take advantage of new opportunities, benefit the most people and also, at the same time, protect some of our most vulnerable?”

The movement comes after Indiana Senate leadership said prior to the 2024 session that it would not entertain gambling expansion legislation. Before a corruption conviction tied to gambling legislation, Indiana was seen as a likely online casino expansion market.

Indiana online casino basics 

Manning suggests the online casino expansion could bring in more than $300 million to the state’s coffers. That also includes an amendment that would more than double the sports betting tax rate to 20% from 9.5%.

If passed, operators would pay a 26% tax rate on revenue until July 2026. After that date, they would be subject to a tiered structure of 22% to 30%, depending on revenue.

The Indiana Gaming Commission could accept applications with passage, and the industry could go live by Sept. 1. Each of the state’s casinos could operate up to three online skins.

Supporters in attendance

Indiana Casino Association President Matt Bell said the state’s casino ecosystem would see “tremendous” benefits. Bell did ask for a flat tax rate.

John Pappas for iDEA Growth said illegal online casino operators are flourishing in Indiana.

Brandt Iden, the government affairs director at Fanatics, said there are no consumer protections for illegal operators, and they do not pay taxes to the state. 

Gambling addiction concerns

Manning’s legislation would establish a new responsible gambling and gambling addiction program. Along with awareness campaigns, it could fund treatment and research. 

Mental Health America of Indiana COO Stephanie Anderson said the increased accessibility of gambling should also increase the availability of funds to help problem gamblers. 

Brianne Doura-Schawohl, a responsible gambling consultant, said online casino legalization would make problems in the state worse. Doura-Schawohl said online casino products are “10 times more addictive and dangerous than other gambling products.” 

Churchill Downs, which operates the Terre Haute Casino Resort, also expressed doubt that legalization would help eradicate the illegal market. 

Photo by Shutterstock / Dennis MacDonald