Indiana is one step closer to legalizing iGaming, where online casino and lottery games could start as early as September. House Bill 1432, which would legalize both, passed the House Public Policy Committee by a vote of 9-2 after a contentious debate.
Bill sponsor Representative Ethan Manning described the proposal as a way of modernizing Indiana’s gaming sector while incorporating responsible gaming safeguards. He said the state could generate over $300 million in additional tax revenue from online gaming and lottery products.
An amendment to the bill includes an increase in the tax sports betting operators pay. If approved, the rate would jump from 9.5% to 20%.
Proponents say regulation would bring oversight, consumer protection, and tax revenues. However, some analysts caution that the ease of access to online gambling could mean higher addiction rates, financial problems, and other issues.
The bill would create a new program to target gambling addiction beyond public awareness campaigns and would fund treatment and research.
Under the new tax structure, iGaming operators would be taxed 26% until July 2026, then on a sliding scale of 22% to 30%. The Indiana Gaming Commission would only be authorized to provide licenses to existing casinos and horse tracks.
Online gaming would launch statewide by September 1, 2025. Licensed operators would be required to contribute $250,000 annually to a problem gambling fund with the potential for additional contributions of up to $2 million.
The Hoosier Lottery also supports the bill, arguing that online lottery sales would preserve revenue. If lawmakers pass the bill, Indiana would be the 15th state to offer online lottery games. With bipartisan support, the bill moves to the full House.