January 15, 2021 2 min read


Indiana Gets One Step Closer to Legal Online Gambling

Legal online gambling is now one step closer in Indiana after Representative Alan Morrison published a bill proposing the legalization and regulation of the activity. The newly introduced House Bill 1406 proposes a tax rate of 18% on adjusted gross revenues and an initial $500,000 fee for interactive gaming operators.

HB 1406 Proposes Online Gambling Legalization in Indiana

Gamblers in Indiana may finally be able to taste some online gambling action this year, if the state approves the recently introduced House Bill 1406. The bill that proposes the legalization and regulation of online gambling was introduced by Representative Alan Morrison. Published on Tuesday, the bill was first read and referred to the Committee on Public Policy yesterday.

The bill proposes that online gambling activities are taxed at 18% on adjusted gross revenues (AGR). From the collected tax revenue, 5/6 would be allocated toward the State General Fund. The remaining 1/6 collected by the gambling tax would be allocated to a “revenue sharing account“.

On annual basis, some 3.33% of the collected revenue for the State General Fund would be donated to gambling addiction treatment services. Furthermore, according to the proposal, some part of the revenue would also be allocated to gambling prevention, education, and treatment of compulsive gambling.

Can Indiana Launch Its Interactive Gaming Market by September This Year?

If the Indiana legislature passes the bill into law, it may start the application process as early as July 1. Consequently, if the process doesn’t face any obstacles, on September 1 the online gaming may be officially launched in Indiana.

Besides taxation, the proposed bill outlines the licensing fees for the operators that provide online gambling services. According to House Bill 1406, operators that want to participate in interactive gaming are to pay an initial fee of $500,000. Consequently, the operators owe an annual $50,000 fee for license renewal.

Operators that receive a license in Indiana may have up to three iGaming providers or skins applicable for sports betting. In order to apply for skin, an upfront fee of $100,000 applies to the gaming service provider. Consequently, an annual fee of $25,000 is valid for renewal.

Currently, online gambling is offered in New Jersey, Delaware, Pennsylvania, and West Virginia. Michigan is in the process of launching its legal online market but lawmakers are confident that it may happen this month. Undoubtedly, if Indiana legalizes online betting, the activity would bring a significant economic stimulus for the state.


Jerome is a welcome new addition to the Gambling News team, bringing years of journalistic experience within the iGaming sector. His interest in the industry begun after he graduated from college where he played in regular local poker tournaments which eventually lead to exposure towards the growing popularity of online poker and casino rooms. Jerome now puts all the knowledge he's accrued to fuel his passion for journalism, providing our team with the latest scoops online.

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