January 29, 2025 3 min read

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Indiana iGaming Bill Picks up Speed, Enjoys Bipartisan Support

If approved, the proposal may bring digital lottery and online casino gambling to Indiana residents in September

A proposal calling for the expansion of gambling activities in Indiana with the addition of online casino gambling and digital lottery continues to pick up speed.

New Push for Online Casino Gambling Legalization in Indiana

On Tuesday this week, the proposal, House Bill 1432 (HB 1432), was approved in a 9-2 vote by the House Public Policy Committee. The bill faced scrutiny for three hours but was able to receive backing by both Republicans and Democrats, despite the vote not being unanimous. After the Committee’s approval, HB 1432 made its way to the full House where it will undergo further consideration.

If HB 1432 is approved by lawmakers, iGaming and online lottery may become available to customers in Indiana as soon as September 1, 2025. Per the proposal, online gambling licensees would be subject to a 26% tax rate on their revenues. The aforementioned tax rate would apply until July 2026 and after that, varying rates between 22% and 30% would be enforced based on the revenue of each iGaming operator.

Under HB 1432 only horse racetracks and casinos would be permitted to apply for an online gambling license. The activity would be regulated by the Indiana Gaming Commission, which will also ensure that licensees are following the established regulatory framework.

Notably, the proposal seeks to create a new gambling addiction and responsible gambling program. This will bolster the state’s current efforts to combat gambling harm with the help of treatment and research.

Each licensee would be subjected to a $250,000 annual fee which will benefit the gambling program. The proposal enforces a cap on the aggregate contributions by each iGaming operator to $2 million per year. The Hoosier Lottery, the state’s lottery operator, will also contribute to the responsible gambling program by setting aside $500,000 per year.

Supporters of the Bill Claim It Will Bring Benefits, Opponents Disagree

Rep. Ethan Manning, the author of the iGaming proposal, estimated that online gambling, digital lottery and a potential increase in sports betting tax may help deliver more than $300 million in new revenue annually for Indiana, the Indiana Capital Chronicle reports. “How can we leverage the assets we already have, take advantage of new opportunities, benefit the most people and also, at the same time, protect some of our most vulnerable,” he said during the recent discussion on the proposal.

But not everyone agrees with the bill, warning that the expansion of gambling may result in further harm. The Campaign for Fairer Gambling’s problem gambling expert, Brianne Doura-Schawohl, predicted that online gambling activities would “exacerbate” gambling addiction across the state. She pointed to the ease of access and round-the-clock availability as one of the greatest dangers of iGaming.

Doura-Schawohl added: “The products that you’re discussing in this bill are thought by researchers to be 10 times more addictive and dangerous than other gambling products.” Finally, the expert said that the real cost of the proposal is “the human life.”

While the proposal enjoyed bipartisan support, it is yet to gain further traction and its future, at least for the moment, isn’t certain. Still, in case lawmakers agree and enact HB 1432, iGaming and digital lottery activities may become available to Indiana residents this September.

Journalist

Jerome brings a wealth of journalistic experience within the iGaming sector. His interest in the industry began after graduating from college, where he regularly participated in local poker tournaments. This exposure led him to the growing popularity of online poker and casino rooms. Jerome now channels all the knowledge he's accrued to fuel his passion for journalism, providing our team with the latest scoops online.

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