Indiana became the seventh state to go legal with mobile sports betting this week, and analysts are already predicting that it will generate significant returns in the region of $400m in revenue on $6bn handle per year.
Dustin Gouker, lead analyst at PlayIndiana.com, believes that Indiana, which is close to Chicago, could achieve those figures if neighboring states such as Kentucky and Ohio remain inactive on sports wagering.
“Indiana’s close proximity to Chicago, as well as other relatively large markets such as Cincinnati and Louisville, should help the state punch above its weight class,” he said. “As long as Indiana’s neighbors continue to prohibit sports betting, the state should expect huge flows of drive-in traffic.”
Gouker also noted that Indiana bears close resemblance to New Jersey, where the New York City market sits just across its border, positioning the Garden State in a tight race with Nevada. “If everything goes right for Indiana, it could see remarkable growth, as was the case in New Jersey,” he said.
The net result for Indiana’s state budget, when applying a tax rate of 9.5% on $400m gross revenue, would be $38m flowing into its coffers.
Referencing Indiana’s 9.5% rate versus the comparatively high 36% applied in Pennsylvania, fellow analyst Kim Yuhl said: “Indiana has set itself up as one of the most operator-friendly legal sports betting markets in the country. That balance should help both sportsbook operators and the state realize their revenue potential.”
DraftKings was typically quick on the ball to announce the debut of its own mobile and online sportsbook for Indiana sports fans. Following momentum from the firm’s expansion in New Jersey and West Virginia, Indiana marks the third state to gain access to its digital sportsbook product.
“DraftKings could not be more thrilled to expand our national reach as states continue to open the market for legalized sports betting,” said Matt Kalish, Co-Founder and Chief Revenue Officer. “Since our sportsbook product launched in 2018, we have made it our number one priority to provide sports fans with a responsible place to wager on a superior and technologically advanced sports-betting platform.
“With Indiana becoming the latest state to offer legalized online and mobile sports betting, we are excited to provide the top-rated sportsbook app to some of the nation’s most passionate and dedicated sports fans.”