Indiana Lawmaker Manning Introduces New iGaming Bill

Last updated on January 16th, 2023

Affiliate Disclaimer Please note that some links on legaluspokersites.com are affiliate links. We may receive a commission, at no extra cost to you, if you click through our links and make a purchase from one of our partners.

Indiana is not exactly new to the idea of internet gaming.

The state has embraced gambling and its revenue since 1989 when it started offering lottery tickets and authorized pari-mutuel wagering. The first horse track opened in 1994, and there are now several. Casinos started around 1990 with the approval of a casino – approved by the voters – for the city of Gary. That led to the 1993 legislative approval of riverboat casinos in Indiana, with the Pokagon Band of Potawatomi Indians following suite much later in 2007. That same year, the state’s two racetracks received approval to turn their properties into racinos. And in 2015, the legislature changed its riverboat casino law to make exceptions for some casinos to move to land.

Today, there are 13 gambling properties in Indiana. The number had been 15 until Majestic Star Casino and Majestic Star II both closed in 2021.

In 2019, Indiana legalized sports betting at land-based properties and online.

There’s only one thing missing: igaming.

Study After Study

Indiana has shown that it’s not opposed to gambling in many forms. And when the pandemic shut down all live gambling for most of 2020, Indiana looked to states like Pennsylvania and especially neighboring Michigan to see them raking in money via igaming.

The Casino Association of Indiana and iDEA Growth, the latter an igaming lobbying organization in the United States, commissioned a study by Global Market Advisors. That study showed the potential for igaming in Indiana in actual dollar amounts.

#Indiana consumers are #gamblingonline on illegal sites.😮
A legal, competitive market can meet consumer demand for #iGaming, protect consumers, put #responsiblegaming tools in place and generate state tax revenues. 😊
Check out our Indiana iGaming Study https://t.co/CvZ2ve3hAt pic.twitter.com/wCp52NXHFa
— iDEA Growth (@iDEA_Growth) August 28, 2022

Essentially, if lawmakers legalized igaming in 2022, the first year of revenue in 2023 could have delivered $420M in revenue, including $75M in state taxes. Two years later, the revenue could rise to $575M with $97M of it paid to the state. And by 2027, igaming operators (partnered with land-based casinos and racinos in the state) could collectively produce $611M in revenue, of which $108M would go to Indiana.

The Indiana Gaming Commission then requested its own study. That 103-page report detailed the multiple models available for structuring igaming in Indiana and estimated revenue. Two models estimated more than $500M in the first year, but all three models showed more than $600M in the second year and more than $800M in the third year.

Should Indiana legalize internet casino gaming, better known as iGaming, its introduction would be a “relatively smooth process,” bringing hundreds of millions in tax revenue, according to 103-page Indiana Gaming Commission report released this week. https://t.co/t8EU4k9vEw
— Tribune-Star News (@tribstar) September 29, 2022

Two Previous iGaming Efforts

After the first study, Indiana lawmakers introduced bills in the State Senate and House to legalize online poker and casino games. Both bills died in committee without debate.

In 2022, however, lawmakers had been preparing by educating their colleagues on the benefits of igaming. At the same time, State Representative Doug Gutwein and Senator Jon Ford dispelled myths – with help from the second aforementioned study – like the purported danger of igaming cannibalizing revenue from land-based casinos. Gutwein collaborated with Representative Ethan Manning to introduce HB.1356, and Ford partnered with Senators Chris Garten and Ronald Grooms for SB.1417.

Both bills died again.

New Year, New Legislation

Even before the new year began, Manning and Ford had both been outspoken about their hopes for 2023 online gaming legislation. Manning was especially optimistic because he had become the new Public Policy Chairman in Indiana. Thus, he was going to be the one to spearhead legislation from the jump this year.

NEW: Indiana Rep. Ethan Manning will introduce a bill to legalize online casino gambling and online lottery games in Indiana. The legislative session begins on Monday. https://t.co/Rss6JG3ps5
— Daniel Wallach (@WALLACHLEGAL) January 6, 2023

January 12 was the last day for a new bill to be filed in the House. And according to PlayIndiana, Manning did file a bill in the House. Days later, it is not listed on the state government’s website, but PlayIndiana reported that the bill dictates that online casino games will be tied to Indiana land-based casinos, with each casino allowed to partner with up to three brands. Each casino will pay $500K for a license, which will be renewable for $50K each year. The tax for online casino revenue will be 18%.

The bill must move through several committees and pass the House before February 27 to stay alive.