How Big Could iGaming be For Indiana? Study Says It Would be Huge

With two bills hanging in the balance during the first 2022 legislative session in Indiana that could bring iGaming to the state, a new study, commissioned by iDEA Growth and the Casino Association of Indiana has evaluated just how lucrative this form of gaming could be for the state.

This study primarily focuses on HB 1356, sponsored by Rep. Doug Gutwein, R-Francesville, and estimates that the state would raise nearly $500 million in new tax revenues.

Indiana online sports betting is already legal. 

However, Indiana online casinos are not yet regulated. The reason for the study is to show potential benefits of iGaming legalization.

What Study Says About Indiana

To start this study, it begins by evaluating the market potential of iGaming in Indiana and offers up regulations other states use in which iGaming is legal.

The data and analysis in the report were composed by Global Market Advisors and it meant to “help(s) the legislature understand the positive impact that legalizing iGaming will have in Indiana, including increased tax revenue, strong consumer protections for Indiana’s bettors, all to the benefit of the state’s thriving land-based gaming operations.”

“Indiana already has the experience and infrastructure in place through online sports betting to support iGaming,” says John Pappas, iDEA’s State Advocacy Director.

“Without even realizing it, Indiana consumers are using illegal online gaming sites that provide no consumer protections and zero state tax revenue. The state’s lawmakers can meet consumer demand by establishing a legal, competitive market that benefits the state economy and protects online players with regulatory safeguards.”

Conclusions to Draw From Study

Some of the main takeaways from this study include the $500 million in new taxes revenues over the next five years, with an 18% tax rate, but would supplement instead of supplanting the revenue from land-based casinos.

“iGaming in Indiana will modernize our industry and keep us competitive with our neighboring states that seek to extract Hoosier customers and Hoosier entertainment dollars from our state,” says Matt Bell, Executive Director of the Casino Association of Indiana.

“We partnered with iDEA Growth for many reasons. iDEA Growth is a professional organization and the gold standard in the iGaming industry. We mutually agree that the iGaming market presents Indiana with an opportunity to expand our current regulated environment in a positive way, without impacting the land-based gaming revenue generated in the state. Just as mobile sports betting has grown the overall revenues for our industry, iGaming will enhance our connection with existing customers and enable us to meet new ones in ways never before possible.”

Recommendations From Study

Toward the conclusion of the report, there are legislative recommendations.

• Online gaming licenses are only given to respected operators with experience while also being licensed and regulated by the Indiana Gaming Commission in partnership with a land-based entity.
• Only those within the confines of the state can wager.
• Diverse product offerings, including slots, table games, and live dealer games, with approval from the Indiana Gaming Commission.
• Use the mobile sports betting template for responsible gaming behaviors.

The legislative period in which this bill is up for debate is actively in progress, with the session beginning on Jan. 4 and set to conclude on March 14.