Indiana iGaming Bill Dead For Legislative Session
Table Of Contents
- A promising Indiana iGaming bill will not move forward
- The bill had successfully moved out of Public Policy Committee
- House Speaker Todd Huston noted on Thursday the bill would not move forward
A promising Indiana iGaming bill will not move out of committee and the chances for the legalization of online casinos are likely dead for the session.
According to the Indiana Capital Chronicle, House Speaker Todd Huston (R-37) noted on Thursday that Rep. Ethan Manning‘s (R-23) iGaming bill, HB 1432, will no longer be moved forward this legislative session.
“There’s all sorts of moving parts about how it impacts certain communities, what it does to the overall gaming environment in Indiana. I think all those things just make it complex to work through,” Huston said as reported by the Chronicle.
iGaming Bill Had Promising Start
Members of the House of Representatives Public Policy Committee approved the bill in late January by a vote of 9-2-2. The committee members also approved an amendment to the bill to raise the state’s online sports betting tax rate from 9.5% to 20%.
The legislation would have allowed licensed casinos, riverboat casinos, and licensed racetracks to offer iGaming in the Hoosier State. It set a launch date of Sept. 1, 2025.
Indiana currently has 13 commercial casinos, as well as one tribal casino, and two racetracks that offer racinos.
The bill’s initial iGaming tax rate was set at 26% of adjusted gross revenues. This rate was set to expire on July 1, 2026, and a new tiered iGaming tax rate would follow. The tiered rates would be based on annual adjusted gross revenues as follows for licensed operators:
- 22% of adjusted gross iGaming revenues if an annual total is less than $4 million
- 24% of adjusted gross iGaming revenues for $4 million or more but less than $8 million
- 26% of adjusted gross iGaming revenues for $8 million or more but less than $10 million
- 28% of adjusted gross iGaming revenues for $10 million or more but less than $12 million
- 30% of adjusted gross iGaming revenues for $12 million or more
The bill would have legalized online lottery in the state. The bill allowed for the sale of draw games and eInstant games over the internet.
The bill also allowed the Indiana Lottery Commission to authorize and regulate courier services, including for the delivery of draw games and eInstant games over the internet.
No Overall Agreement on Bill
The Indiana Capital Chronicle noted that Huston said there was no overall consensus on the bill among state lawmakers to move the document forward.
He cited worries about potential retail casino revenue cannibalization if iGaming was legal, which has been a common worry for iGaming opponents.
In his fiscal estimate for the bill, Rep. Manning believed iGaming would have brought in more than $300 million annually for the state.
Robert Linnehan
Covering regulatory developments in online gambling. Editing/writing/creating a newsletter for readers across all formats.
