Despite not having unanimous support, a proposal to legalize online casinos in Indiana has moved forward.
The House Public Policy Committee approved House Bill 1432 with a 9-2 vote. If passed, this bill would enable Hoosiers to gamble from anywhere using their electronic devices, marking the most significant gaming expansion in Indiana since at least 2019.
"Hoosiers are already playing casino games online – just Google it," said committee chair Rep. Ethan Manning. "This is happening already. Let's authorize it, let's regulate it, let's make it appropriate, and obviously, we see huge potential for tax revenue as well."
Representative Ethan Manning introduced the bill last week, and it seems to be swiftly approaching approval. Indiana would join the growing list of states with legal online casinos.
What Would HB1432 Change in Indiana?
If approved, HB1432 would not only legalize online casinos in Indiana but also tax online gaming license holders at 26% until July 2026. After that, a sliding tax rate between 22% and 30% will be applied based on the licensees' income. Only casinos and horse tracks can apply for these licenses.
The law also creates a new program for responsible gambling and gambling addiction. Unlike previous efforts in Indiana, which focused mainly on awareness, this program could also support treatment and research initiatives.
Additional provisions would enhance revenue-sharing with Hoosier communities, expand the voluntary exclusion program, and mandate a research partnership with an Indiana university.
If amended, this proposal will allow the Indiana Gaming Commission to start accepting online gaming license applications as soon as it is passed. Online gaming will officially begin on September 1, 2025.
Safety a Concern During Online Casino Discussion
The Indiana Capital Chronicle reported that during testimony for and against the bill, Brandt Iden, the government affairs director for Fanatics, explained that these illegal casinos lack oversight, don't protect consumers, and don't contribute any revenue to the state.
He said that lawmakers now have a chance to change this. Iden was speaking on behalf of the Sports Betting Alliance, which includes Fanatics, DraftKings, FanDuel, and BetMGM.
John Pappas from the iDevelopment and Economic Association stated that illegal operators are promoting their online games as legal and are even using Indiana's state seal in their advertisements.
Lawmakers Also Looking To Add Millions To State Coffers
The bill will greatly affect the state's economy. Supporters believe it could increase state tax revenue by hundreds of millions of dollars.
Analysts predict that interactive gaming could generate between $500 million and $1 billion in gross revenue annually. This could translate to yearly tax revenues of $119 million to $253 million. However, the net revenue might be less if business at physical casinos decreases, which is expected to happen.
Others fear online casinos would cost jobs at brick-and-mortar casinos.
Online Casinos in Indiana Could Be Legal By September
While supporters are optimistic about the financial benefits, the potential decline in physical casino business remains a concern.
There’s no denying the fact that online casinos are growing into a profitable industry in the U.S. This trend of allowing people to play table games like blackjack, roulette, and craps, as well as slot machines, right from their phones, is not going away.
Online casino bills are also on the table in places like Massachusetts, New York, and even Hawaii.
As Indiana explores this new gaming frontier, carefully considering both opportunities and challenges will be crucial for maximizing the positive impact on the state.
Indiana's new governor, Mike Braun, has already expressed a public willingness to expand gaming operations in The Hoosier State. So, it appears that the odds favor approving the bill.
