Indiana Hoping to Become the Latest State to Legalize iGaming

Could the Hoosier State be the next market to legalize online casinos? If a group of lawmakers have their way, the answer is yes.

Indiana Representative Ethan Manning has proposed House Bill 1432 to legalize iGaming. After a heated debate, the bill passed the House Public Policy Committee on Tuesday. This moves the bill closer to becoming law, though it will continue to face an uphill battle.

Industry proponents have pointed to the amount of revenue the industry could generate, which they estimate to be around $300 million annually. The bill would also create programs that tackle responsible gambling and programs to help those suffering from gambling addiction. While iGaming would fuel the spike in problem gambling, supporters of HB 1432 believe the programs created would help ensure the rise is minimal.

Opponents of the bill continue to push concerns over the issue of responsible gambling. They claim iGaming is far more addictive than sports betting and could lead to increases in crimes and suicides related to gambling.

While Indiana remains one of the most conservative states in the country, it was one of the first midwestern states to legalize sports betting.

Could Sports Betting Amendment Tank Bill?

While HB 1432 aims to legalize iGaming, it includes an amendment to raise the tax rate for sports betting operators. Indiana’s 9.5% tax rate is one of the lowest in the country, but this bill would raise it to 20%. While the new rate isn’t unreasonable, the sports betting industry will fiercely oppose it.

States across the US have been attempting to raise tax rates for online sportsbooks, but almost all have failed. That is due to opposition from sportsbooks, which use their deep pockets to launch public campaigns against these attempts. They threaten to water down odds and limit promotions, leading bettors to oppose any changes.

While this amendment could be cut as HB 1432 is reviewed, the optimistic revenue projections would take a big hit. That could ultimately doom the bill, keeping iGaming out of Indiana for at least one more year.