Indiana Lawmakers Moving Forward with Online Casino Legislation

Residents in the Hoosier State are one step closer to having real money online casino options available within their territory.  House Bill 1432 (HB 1432) went through scrutiny from the House Public Policy Committee and passed by a 9-2 vote.

Representative Ethan Manning has noted that Hoosiers are already playing casino games online, and that HB 1432 has been proposed to give Indiana residents a safer and regulated online casino environment where they can enjoy the best casinos online. 

“This is happening already. Let’s authorize it, let’s regulate it, and let’s see huge tax revenue,” Manning added.

Following this, HB 1432 advances to the House Ways and Means Committee, where the House will conduct further discussions pertaining to financial implications of the bill it will entail for the state. 

In the event that the House green lights HB 1432, the Senate will take the reins for more discussion. Historically, the Senate will be the biggest test for HB 1432, since the Senate is traditionally against gambling expansion.

What are the Key Proponents of House Bill 1432?

Sponsored by Rep. Manning, HB 1432 includes the following proponents: 

Online Casino Licensing & Operations: Indiana’s casinos and racetracks could apply for an online gaming license for $500,000, providing each retail location with the potential for three online skins. 

Progressive Tax Structure: Operators would initially be taxed at 26% of adjusted gross revenue, shifting to a tiered structure ranging from 22% to 30% starting in July 2026.

Digital Lottery Sales: The Indiana Lottery Commission would be authorized to sell draw and eInstant games online.

Responsible Gambling Initiatives: The bill mandates the creation of the Indiana Responsible Gambling and Problem Gambling Services Program. 

Increased Sports Betting Tax: A key amendment to HB 1432 raises the online sports betting tax rate from 9.5% to 20%, while retail sportsbook operations maintain the current 9.5% rate.

Tribal Gaming Inclusion: The Pokagon Band of Potawatomi Indians, which operates a casino in South Bend, would be permitted to participate in online gaming under a state license.

Along with the one-time $500K licensing charge, HB 1432 will require each online gaming platform to pay the state an annual fee of $50K. The yearly payment would go toward responsible gaming programs and problem gambling services.

Moreover, under HB 1432, most of the remaining state tax revenue generated from iGaming would go to the Indiana General Fund.

What Happens If HB 1432 Passes in the Senate?

Currently, Indiana is home to 13 commercial casinos. Indiana is the seventh-richest commercial gaming state behind only Nevada, New Jersey, Pennsylvania, New York, Michigan, and Ohio.

In the event that HB 1432 gets passed, the Hoosier State will become the latest state in the US that allows and regulates online casino games.