News writer
Could your next jackpot come from your smartphone? Indiana is one step closer to offering legal online lottery and casino games, thanks to a new proposal that passed through the House Public Policy Committee.
While some argue it could bring millions in revenue, others are concerned about the potential for gambling addiction. Despite the debate, lawmakers cleared the first hurdle in bringing the Indiana Lottery online.
House Bill 1432
A hearing was held on Tuesday, January 28, 2025, for a proposal authorizing iGaming in the state of Indiana. The proposal was introduced in the House Public Policy Committee by Rep. Ethan Manning, a Republican from Logansport.
According to Manning, the digital lottery and casino games, along with the sports wagering tax hikes, could bring the state of Indiana over $300 million in revenue annually.
The hearing on the bill lasted about three hours, and people from both sides of the aisle gave their thoughts on bringing online lottery sales to Indiana.
John Pappas, representing the iDevelopment and Economic Association, said illegal operators are already hawking their online games as legal. Brant Iden, the government affairs director at Fanatics, added, “These (illegal) casinos have no oversight, no consumer protections, and zero revenue for the state. Today, you have the opportunity to correct that.”
Meanwhile, responsible gaming advocates said the state could enforce its laws and drive out these illegal online casinos while also not legalizing such gambling in the state.
What would the bill provide?
Under this bill, the legislation would tax iGaming licensees at 26% until July 2026. After that, it would impose graduated rates ranging from 22%-30%, depending on the income of that licensee. The state would only allow casinos and horse tracks to get these licenses.
The bill would allow the Indiana Gaming Commission to start accepting iGaming license applications once the bill is passed. Then iGaming would go live on September 1, 2025.
In addition, the bill establishes a new program for responsible gambling and gambling addiction. Past efforts have focused heavily on awareness campaigns, and this new program would also fund treatment and research.
Opponents of the bill said it would “only exacerbate” the gambling addiction seen in the Hoosier population. Offering online gambling would mean easier and instant access, along with isolated playing and anonymous payments.
Brianne Doura-Schawohl, a problem gambling expert representing the Campaign for Fairer Gambling, said, “The products that you're discussing in this bill are thought by researchers to be 10 times more addictive and dangerous than other gambling products,” the Indiana Capital Chronicle wrote.
Committee approves new bill
After the hearing was complete, the House Public Policy Committee voted 9-2 to approve House Bill 1432. It goes to the full House next, and if approved, Indiana would join 14 other states with digital lottery games, including Michigan, Illinois, and Kentucky.
The Hoosier Lottery supports the legalization of online lottery. Jared Bond, the lottery's external affairs director, said the lottery is performing well but is facing “challenges to maintain and grow our revenue and player base into the future.”
Bond thinks an online lottery would help boost sales and attract new players, but it wouldn't cannibalize retail sales. In addition, the lottery would put $500,000 annually into the responsible gambling program.
Online lottery bill stalls out in House
While the House Public Policy Committee easily passed House Bill 1432 in January, the bill is now dead on the House floor for this legislative session.
According to House Speaker Todd Huston, the bill did not get a hearing in the Ways and Means Committee, the Indiana Capital Chronicle reported. This committee would've taken a closer look at the financial aspects of the proposal.
For now, the bill has been put on hold. It can be introduced again in another session to see if it gets a hearing then.
Enjoy playing the Indiana Lottery, and please remember to play responsibly.
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