Indiana Moves Closer to Legalizing Online Casinos and Lottery
Indiana is edging toward a major expansion of its gambling industry after House Bill 1432 cleared a key legislative hurdle. The bill, which would legalize online casinos and digital lottery games, passed the House Public Policy Committee with a 9-2 vote after an intense three-hour discussion. However, the fight isn’t over yet—HB 1432 still has a long way to go before becoming law.
What’s in the Bill?
If passed, HB 1432 would allow Indiana’s licensed casinos and racetracks to offer online gambling, bringing games like poker, blackjack, and slots to computers and mobile devices across the state. The Indiana Gaming Commission would oversee the industry, ensuring compliance and consumer protections.
Key details of the bill include:
- A $500,000 licensing fee for operators, with each casino or racetrack allowed to run up to three online gaming platforms.
- A progressive tax system, starting at 26% and later adjusting between 22%-30% depending on operator revenue.
- A $250,000 annual fee per operator to support problem gambling programs, with a maximum contribution of $2 million per year if more funding is needed.
- The launch of Indiana’s online casino market by September 1, 2025, if the bill clears all legislative hurdles.
Divided Opinions on Online Casinos
Supporters of HB 1432 argue that Hoosiers are already gambling online, just through unregulated offshore sites. They believe legalization would create oversight, boost consumer protections, and generate millions in tax revenue. Early estimates suggest Indiana could see over $300 million in new tax revenue each year.
But not everyone is on board. Brick-and-mortar casino operators worry that online gambling will siphon revenue away from physical locations, impacting jobs and local economies. Some lawmakers and advocacy groups also fear that expanding digital gambling will lead to increased addiction rates.
What’s Next for HB 1432?
The bill now moves to the House Ways and Means Committee, where it will face further scrutiny before a full House vote. If it passes, it will then head to the Indiana Senate, where opposition is expected to be stronger. Even if both chambers approve the bill, Governor Eric Holcomb’s stance remains unclear.
The push to legalize online casinos is happening alongside other major gambling discussions in the state. Lawmakers are also debating HB 1417, which aims to ban controversial “skill-based” gaming machines commonly found in bars and gas stations. Meanwhile, changes to sports betting tax rates and promotional deductions are also on the table.
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