Residents of the Hoosier State might soon have online casino games available on their territory for them to experience and enjoy. The Indiana House Committee of Public Policy recently passed House Bill 1432 (HB 1432) after a 9-2 vote.
HB 1432 was introduced by Representative Ethan Manning to the Indiana House Committee on Public Policy. Rep. Manning framed the proposal as an opportunity to modernize Indiana’s gaming industry while addressing responsible gambling concerns from fellow legislators and members of the committee.
Rep. Manning underscored the potential for the legislation to generate more than $300m annually in new revenue for the state should they green light the bill to allow the operations of online casinos and lotteries, namely through taxes on online gaming and sports betting that the bill would implement.
Moreover, casino industry representatives have voiced their support for the house bill, noting that Indiana residents are already accessing online gambling through unregulated and illegal platforms. Some industry advocates also pointed out that some illicit operators falsely advertise their services as legal, even using Indiana’s official seal to mislead consumers.
Supporters emphasised that legalising iGaming would introduce oversight, consumer protections, and significant tax revenue.
What Are the Main Proponents HB 1432?
Under HB 1432, the bill proposes the Indiana Gaming Commission the authority to regulate iGaming with state casinos and racetracks, with each gambling entity allowed to acquire one license that costs $500,000 upfront and have up to three skins.
The acquisition of licenses also calls for a 26% tax rate on adjusted gross revenue for operators in the first year of operation before a tiered structure is implemented. That said, only existing casinos and horse tracks would be eligible to apply for iGaming licenses.
The Indiana Gaming Commission would be authorised to begin accepting applications for licences as soon as the bill is passed, with online slot games and other iGaming offers expected to launch statewide on September 1 2025.
On top of this, HB 1432 also mandates the establishment of the Indiana Responsible Gambling and Problem Gambling Services Program. Under HB 1432, the Indiana Gaming Commission is required to allocate $500,000 a year to the program and will charge operators for RG and PG costs. To this end, licensed operators would be required to contribute annual fees of $250,000 to a problem gambling fund.
Support from the Hoosier Lottery and Indiana Tribes
Apart from the online casino operators and industry supporters, Indiana tribes and the Hoosier Lottery are also backing up HB 1432. According to the Hoosier Lottery, if HB 1432 is green-lit, Indiana would join 14 other states, including neighbouring Kentucky, Illinois, and Michigan, in offering online lottery games.
The Hoosier Lottery has contributed over $7.4bn to the state since its inception. Along with its contributions, the Hoosier Lottery has been supporting pensions, gasoline tax offsets, and other public initiatives. This is why officials believe that expanding into online sales would complement, rather than cannibalise, retail lottery sales.
That said, as part of the proposed framework of HB 1432, the Hoosier Lottery would contribute $500,000 annually to the responsible gambling fund.
Moreover, the addition of the amendments had a great reception from the Pokagon Gaming Authority, which owns a casino in South Bend. The tribal gaming authority is voicing its support of HB 1432’s latest iteration as it evens the playing field in the state.
According to a statement from Paul Shagen, Authority General Counsel of Pokagon Gaming, during the hearing, HB 1432 is a great help to see the Pokagon Band’s primary goals be fulfilled,
“First, it will allow the Pokagon Band to participate in iGaming on equal footing under a state license. Secondly, the bill accounts for the unique sovereign status of the Pokagon Band as a government and federally recognized tribe and reflects the relationship between Pokagon and Indiana,” Shagen added.
What Happens When HB 1432 Gets Passed?
In the event that HB 1432 is passed, this will make Indiana the latest state to legalize U.S. online casinos within their territory. This includes New Jersey, Michigan, Pennsylvania, Delaware, Connecticut, West Virginia, and Rhode Island.