Indiana’s iGaming Efforts Stall as HB 1432 Fails to Make Progress

Indiana’s iGaming push has come crashing down despite gaining traction earlier this year. The bill that would have legalized online casinos had a strong momentum but failed to secure a hearing in the Ways and Means Committee.

The Measure Sought to Legalize Online Casinos

In January, House Bill 1432 received bipartisan support and was approved in a 9-2 vote by the House Public Policy Committee.

The measure sought to launch iGaming in the state, promising to generate significant tax revenues. Under HB 1432, Indiana would have subjected iGaming to a 26% tax rate until July 2026, and a varying rate of between 22% and 30% from then on.

If approved, HB 1432 would have allowed existing racetracks and casinos to apply for an online gambling license. In addition to that, companies would have had to pay a $250,000 annual licensing fee. The activity would have been managed by the Indiana Gaming Commission.

Unfortunately, the measure failed to replicate its success with the House Public Policy Committee at the Ways and Means Committee.

HB 1432 Will Not Pass This Session

According to House Speaker Todd Huston, the iGaming measure will not move forward this legislative session. According to him, the Ways and Means Committee did not inspect the proposal’s financial aspects, jeopardizing its passing.

Huston was aware of the measure’s pros and cons and praised its mastermind, Rep. Ethan Manning, for his efforts. However, Huston also acknowledged that the bill could have hurt existing gambling industry stakeholders’ business, shaking the gaming balance in the Hoosier State.

Manning, for context, argued that many people in Indiana are already engaging in online gambling, saying that it would have been a good thing to legalize the vertical. He also estimated that iGaming could generate up to $300 million in state revenue a year.

However, not everyone was on board as casinos feared that online gaming might hurt their retail businesses. Others cited problem gambling concerns, even though House Bill 1432 would have created a safer gambling program that would have been funded by the tax on online casinos.  

Other States Also Explore iGaming Opportunities

Indiana is not the only state that sought to legalize iGaming. As the legislative session continues, other US markets are likewise trying to get online casinos going. In Illinois, for example, supporters argue that iGaming would help the state address its $3 billion budget deficit. Under the proposed Internet Gaming Act, operators will have to pay a 25% tax on adjusted iGaming revenue, potentially relieving some of the state’s financial woes.

A recent study by critics of the online gaming industry, on the other hand, highlighted the negative impact the activity may have. According to the National Association Against iGaming, launching online casinos in more states would lead to job losses, economic instability and gambling harm.