Indiana Moves Forward with iGaming Bill

Indiana is on the brink of legalizing online casinos and lottery games, paving the way for a regulated iGaming market.

Lawmakers believe House Bill 1432 could generate over $300 million in annual tax revenue while increasing consumer protections.

If passed, the bill would allow Indiana’s casinos and racetracks to offer legal iGaming, curbing illegal market activity.

Learn how Indiana’s iGaming expansion could reshape the state’s gambling landscape and fuel economic growth.

Indiana Advances iGaming Bill, Eyes September 2025 Launch

3 Key Points:

1. Legislative Approval in Progress: The Indiana House Public Policy Committee approved House Bill 1432 in a 9-2 vote, advancing it to the full House.
2. Projected Tax Revenue: The bill proposes a 26% iGaming tax, expected to generate $300 million annually for state programs.
3. Consumer Protections & Responsible Gambling: The measure includes funding for problem gambling programs, enhanced self-exclusion tools, and tighter oversight.

Indiana is taking a significant step toward legalizing online gambling, with House Bill 1432 moving forward after receiving approval from the House Public Policy Committee. If enacted, the bill would authorize regulated online casino gaming and an online lottery, positioning Indiana alongside Michigan, Illinois, and Kentucky in the Midwest’s growing iGaming market.

Rep. Ethan Manning, the bill’s author, championed the measure as a modernization of Indiana’s gaming industry, arguing that legalization would bring oversight, tax revenue, and consumer protections. The bill has gained strong support from casino operators, who claim that Hoosiers are already gambling on unregulated offshore sites, often mistaking them for legal platforms.

Projected Economic Impact and Licensing Framework

Industry analysts estimate that Indiana’s iGaming market could generate over $300 million annually in new tax revenue. To capitalize on this potential, the bill proposes a 26% tax rate on iGaming operators through July 2026, after which a graduated tax system will apply, ranging from 22% to 30% based on revenue levels.

Under the proposal:

• Only existing casinos and horse racetracks would be eligible for iGaming licenses.
• Operators would pay an annual $250,000 fee to support problem gambling programs.
• The Indiana Gaming Commission would oversee licensing and compliance, ensuring a smooth rollout by September 2025.

Responsible Gambling and Consumer Protections

While industry stakeholders praise the bill’s economic potential, responsible gambling advocates warn about the risks of increased online accessibility. Opponents argue that instant digital transactions could lead to higher addiction rates, with concerns that online betting is more addictive than traditional gambling.

To address these concerns, House Bill 1432 includes several consumer protection measures:

• A dedicated problem gambling fund supported by operator contributions and additional state funding if necessary.
• Stronger voluntary exclusion programs to help at-risk gamblers limit their activity.
• Collaborations with Indiana universities to conduct gambling addiction research and improve harm prevention efforts.

Hoosier Lottery Supports Online Expansion

Beyond casino gaming, the bill also includes provisions for an online lottery, a move supported by the Hoosier Lottery. Officials argue that launching a digital lottery will increase revenue and attract new players without cannibalizing retail sales.

Since its inception, the Hoosier Lottery has contributed over $7.4 billion to state-funded programs, including pensions and public infrastructure. Moving online would align Indiana with 14 other states that have legalized online lottery sales, ensuring sustained revenue growth for public initiatives.

As part of the plan, the Hoosier Lottery would allocate $500,000 annually to responsible gambling programs, reinforcing its commitment to player protection.

Indiana’s iGaming Future Looks Promising

Indiana is well-positioned to join the growing list of states embracing iGaming, with House Bill 1432 providing a comprehensive framework for legalization. With strong industry backing, robust tax revenue potential, and consumer protection measures, the bill addresses key concerns while unlocking economic opportunities.

As the measure moves through the legislative process, stakeholders will watch closely to see whether Indiana lawmakers approve full-scale iGaming in 2025. If successful, the state’s gaming industry will enter a new era of digital expansion, benefiting players, businesses, and public programs alike.