House Bill 1432, a bill that would have legalized online casino gambling, advanced from the House Public Policy Committee earlier this year but failed to muster a hearing at the lower chamber’s Ways and Means Committee.
No Dice in Indiana
Representative Ethan Manning, R-Logansport, introduced his iGaming package, HB 1432, to the House Public Policy Committee by a 9-2 vote, asking, “What is the future of gaming policy in Indiana? How can we leverage the assets we already have, take advantage of new opportunities, benefit the most people, and also, at the same time, protect some of our most vulnerable?”
Manning’s rhetoric convinced the committee to advance his bill, but the Ways and Means Committee became the roadblock he feared. The committee declined to hear the bill, thus killing any chances of online casino gambling in the Hoosier State.
House Speaker Todd Huston remarked that Manning’s bill was multi-layered, saying, “There’s all sorts of moving parts about how it impacts certain communities, what it does to the overall gaming environment in Indiana. I think all those things just make it complex to work through. And I think, you know, just trying to find something there was some consensus on, felt like it was a pretty tough spot to be.”
The bill would have allowed Indiana’s land-based casinos and horse tracks to offer online casino gambling, which, along with digital sports betting tax increases, would have produced revenues for the state believed to be as much as $300 million per annum. The initial tax on the profits was set at 26% until July 2026, but then a graduated tax congruent with the licensee’s revenues would range from 22% to 30%, with iGaming slated to launch on September 1, 2025.
Brandt Iden, the government affairs director for mobile sports gaming company Fanatics, voiced his support for the bill, stating, “These (unlicensed) casinos have no oversight, no consumer protections, and zero revenue for the state. Today, you have the opportunity to correct that.”
Lack of Support
The usual suspects were at play in dooming iGaming in Indiana. Fears of cannibalization of land-based casino profits along with the possibility of decreased foot traffic could cost jobs not only at the casinos themselves but also at ancillary businesses adjacent to or near casinos, like bars, restaurants and shops.
Of course, the subject of gambling addiction reared its head, which is another primary reason why so few markets have passed iGaming legislation. Brianne Doura-Schawohl, speaking on behalf of the Campaign for Fairer Gambling, made her feelings known. “The products that you’re discussing in this bill are thought by researchers to be 10 times more addictive and dangerous than other gambling products,” she warned. “We must talk about the real cost being decided in this policy, and that’s the cost of the human life.”
Only seven states, including New Jersey, Delaware, West Virginia, Pennsylvania, Michigan, Connecticut and Rhode Island, have launched online casino gambling. However, this year, more than any other, iGaming has been discussed in state legislatures throughout the nation. The allure of substantial profits that tower above those generated by mobile sportsbooks has attracted many lawmakers, especially in states with large budget deficits.
However, the blowback from casino owners, union officials, and mental health professionals is often too vocal for politicians to ignore. Such was the case in Indiana, and no doubt the same will hold true in many other legislatures currently considering iGaming.
