Indiana Lawmakers Halt Online Casino Bill
Efforts to legalize online casinos in Indiana have stalled as House Bill 1432 (HB 1432) failed to advance in the House Ways and Means Committee. Without committee approval, the bill will not reach a full House vote, effectively ending its chances for passage this session.
Key Reasons for the Bill’s Failure
Lawmakers raised concerns about how online casino gaming might impact the state’s existing gambling industry.
One major issue was potential revenue cannibalization, with representatives from districts hosting brick-and-mortar casinos worried that an online expansion could reduce foot traffic and profits at land-based venues.
The bill’s complexity also played a role in its rejection. Lawmakers struggled to reach a consensus on how online gaming should be regulated and taxed, leading to insufficient support for moving forward.
What HB 1432 Proposed
Had it passed, HB 1432 would have allowed Indiana’s 13 casinos, riverboat gaming venues, and racetracks to launch up to three online casino platforms.
These operators could have partnered with third-party companies like DraftKings and FanDuel to expand their digital gaming offerings.
The bill also outlined a $500,000 licensing fee, with a $250,000 annual renewal cost. Operators would have paid between 22% and 30% in gaming taxes, which could have generated between $413 million and $929 million in new tax revenue over the first three years.
Additionally, the bill proposed launching a state-run online lottery and creating a responsible gambling program funded by casino fines.
For now, Indiana’s online casino expansion is on hold, but the conversation is far from over. While HB 1432 failed, the push for iGaming is likely to resurface in future sessions, especially as other states explore similar legislation.
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