Feb 5, 2025 5 min read

Lawmakers in Indiana are making progress with their plan to legalize online casino gaming in the state. The House Public Policy Committee voted 9-2 on a proposal approving online gambling in the state, advancing a bill to bring convenience to residents who enjoy casino gaming.

While there have been other efforts to legalize iGaming in Indiana, none has succeeded. Rep Sean Eberhart’s guilty plea in a corruption trial soured efforts at making Indiana join a growing list of states where online gambling is legal. Eberhart received a $25,000 fine and was sentenced to a year and a day in federal prison.

The current bill, House Bill 1432, is estimated to bring Indiana annual revenue of more than $300 million, especially considering that the state has seen more than $7 billion worth of online sports bets placed since 2019, when it became legal. Indiana’s figure makes it the fifth-largest among states where online sports betting is legal.

If Indiana legalizes online gambling, many iGaming platforms would likely rush to the state to become one of the first few operators officially licensed For the time being, local residents can still turn to service providers like Mega Dice, which offers ample bonuses, access to hundreds of unique games, and more withdrawal and payment options via multiple digital assets (from traditional credit cards to crypto). If Indiana allows online casinos, the locally verified operators should provide at least such benefits to attract domestic players to their new platforms.

According to Rep Ethan Manning, who introduced the bill, 1432 will also help tackle the illegal betting business and streamline the industry so that it adopts best practices that allow interested players to enjoy casino games on their phones. According to him, residents are already enjoying these games online. He noted:

“This is happening already. Let’s authorize it, let’s regulate it, let’s make it appropriate, and obviously we see huge potential for tax revenue as well.”

Specifics of HB 1432

Rep Manning’s bill contains a few provisions set to sanitize Indiana’s gambling industry. According to HB 1432, casinos and racetracks looking to provide online services can submit applications to the Indiana Gaming Commission and pay an initial fee of $500,000. Also, approved platforms must renew their license annually for $50,000.

Other provisions of the bill include a tax structure that collects 26% of adjusted gross revenue. From July 2026, the tax structure will apply a tiered system that will charge between 22% and 30%. Interestingly, the bill also includes an increase in sports betting tax from the current 9.5% to 20%. However, retail sportsbooks will maintain 9.5%.

Analysts suggest that tax revenue from the industry could be between $119 million and $253 million annually. However, actual figures may eventually vary depending on reactions from land-based casinos.

If the bill succeeds and gets Governor Mike Braun’s signature, Hoosiers may begin enjoying legal online gambling in September. However, there is currently no guarantee the bill will sail smoothly into success.

Reactions to Indiana’s Pro-Gambling Bills

Indiana’s casino industry seems to support the industry as they believe the bill, when signed into law, would lead to higher revenues for companies that obtain the licenses. According to a casino industry lobbyist, Matt Bell, the law will grow the state’s gambling market and help to connect with audiences that currently do not patronize casinos. However, another lobbyist, John Hammond, is against the bill. Hammond lobbies for Penn National Gaming, the gambling giant that owns the Hollywood Casino in Lawrenceburg and the Ameristar casino in East Chicago.

Hammond’s opposition stems from Penn National’s current position against House Bill 1433, another bill recently approved unanimously by the House Public Policy Committee. Bill 1433 would allow bars and taverns to offer patrons electronic games. According to Hammond, 1433 could “cannibalize” revenues casinos generate because bars and charitable groups can legally provide customers with electronic pull-tab games. Hammond said:

“We do not support this bill because e-pull tabs are still a live grenade in the process. It’s still out there, passed out of this committee moments ago, 13-0. That’s our biggest concern.”

Opposition to Bill 1432 has also come from a Churchill Downs lobbyist. The position is similar, stemming from the likelihood that land-based casinos will suffer a reduction in jobs and revenue, which could also affect the industry and gambling figures in other ways.

For Rep. Cory Criswell, R-Middletown, the industry’s reluctance to allow smaller venues like VFW Halls to host electronic pull-tab games is disappointing. Criswell pointed out that while the casino industry already makes a lot of money, small bars and American Legion halls do not, and may now earn some profits if they are allowed to participate. Describing the opposition as “mind-boggling,” Criswell said it was frustrating that the industry would throw its weight against the bill because of e-pull tabs. “That’s what really gets under my skin,” he said.

Conclusion: Both Sides of the Divide

While Criswell decries the casino industry’s opposition and criticizes them for being all about money, HB 1433 has the support of veterans and their community. According to Mark Gullion of the American Legion, the bill will help generate more revenue so charities can enjoy better support.

For others, opposition to the pro-gambling bills stems from social impact. For instance, Rep. Matt Lehman, R-Byrne, voted against Bill 1432 because of concerns about exposure to young people, including seventh and eighth graders. Lehman believes that while it makes gambling more accessible to older people with means, more access may also compromise young people.