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Introduced Indiana iGaming Bill Also Includes Online Lottery



Indiana lawmakers are hoping to pass both iGaming and online lottery in the 2025 legislation session.

Rep. Ethan Manning (R-23) recently introduced HB 1432 to legalize both online lottery and iGaming in the Hoosier State. Under the piece of legislation, the Indiana Gaming Commission will develop and administer the iGaming program while the Indiana Lottery Commission will regulate online lottery games.

Indiana lawmakers have considered several iGaming bills over years but have yet to get one across the finish line.

Tiered-Tax Rates for iGaming Operators

According to the legislation, the following will be eligible for an iGaming license:

  • A licensed owner of a riverboat
  • An operating agent operating a riverboat in a historic hotel district
  • A permit holder conducting gambling games at the permit holder’s racetrack

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 would be set at 26% of adjusted gross revenues when the approved bill goes into effect on July 1, 2025. This rate would 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

It’s a similar tax structure to Illinois’ sports betting tax rate, which includes a higher tax rate for operators bringing in higher sports betting revenues.

The bill sets an iGaming license fee at $500,000, which must be renewed annually for $50,000.

Online Lottery Also Included

The bill also allows for the legalization of online lottery games in Indiana. If approved, the bill will allow for the sale of draw games and eInstant games over the internet.

The bill also provides that the Indiana Lottery Commission may authorize and regulate courier services, including for the delivery of draw games and eInstant games over the internet.

Indiana iGaming Study Predicts Billions in Revenue

An iGaming study commissioned by the Indiana Gaming Commission predicted the Hoosier State could bring in billions of revenues annual if iGaming is legalized.

Spectrum Gaming Group released a study in 2023 that predicted Indiana could generate $2 billion in revenues across its first three years of operations. At various iGaming tax rates (20% to 45%), the study predicted Indiana could see annual iGaming tax revenues between $413 million and $929 million during the first three years of legalized iGaming,

“With a mature casino industry and digital sports betting in place, Indiana is well positioned to integrate iGaming with its existing responsible-gaming measures, although additional funding should be dedicated for treatment services, according to the executive director of the Indiana Council on Problem Gambling,” according to the study.


Robert

Robert Linnehan

Covering regulatory developments in online gambling. Editing/writing/creating a newsletter for readers across all formats.



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