After taking a break from gaming legislation in 2024, the Indiana legislature will once again consider a gambling expansion bill.
There was a moratorium last year on new gambling bills in the state in the wake of former state representative Sean Eberhart pleading guilty to corruption charges stemming from pushing gaming bills in exchange for employment.
This year though, Rep. Ethan Manning is going to introduce a bill that would, among other things, legalize and regulate both online lotteries and online casinos in the state. He introduced a similar piece of legislation in 2023 that failed to pass into law.
In this year’s iteration of the bill, HB1432, the legislation would legalize and regulate online lottery games and online casinos in the state.
The Indiana Gaming Commission would oversee online casino. State casinos and racetracks would be eligible for a license, which would require an upfront fee of $500,000. Each license would be eligible for up to three skins.
The tax structure would apply a flat 26% tax rate in the first year of operation, then shift to a tiered structure:
- 22% for operators with less than $4 million in adjusted gross revenue during the previous fiscal year
- 24% for operators generating $4 million up to $7,999,9999 in AGR during the previous fiscal year
- 26% for operators generating $8 million up to $9,999,999 in AGR during the previous fiscal year
- 28% for operators generating $10 million up to $11,999,999 in AGR during the previous fiscal year
- 30% for operators generating more than $12 million during the previous fiscal year
The bill would mandate live dealer stuidios be housed within the state. It would also create the Indiana Responsible Gambling and Problem Gambling Services Program. The IGC will contribute $500,000 a year to the program and will also bill operators for RG and PG costs generated by legal gambling in the state.
The Indiana Lottery Commission would oversee the online lottery expansion. Expansion would include the online sale of popular draw games and einstant games.
The bill also includes a provision to regulate lottery courier in the states. While couriers have not launched in Indiana yet, the likes of Jackpot.com and Jackpocket.com are quickly expanding into new states. The bill would allow for these couriers to do business, but would require them to apply for and be approved for a license in order to do so.
Finally, the bill would allow for the expansion of pull tab games in Class II gaming establishments.
The bill is scheduled to have its first reading on Jan. 21 where it will be referred to the House Committee on Public Policy.
