A new research study has shown that the state of Indiana would raise nearly $500m in new tax revenues if it enacts HB 1356, a bill that would bring online gaming to the Hoosier State.
Commissioned by iDEA Growth (iDevelopment and Economic Association) and the Casino Association of Indiana (CAI), the research evaluates Indiana’s market potential if igaming was introduced and offers regulatory guidelines used by other igaming states.
Composed by Global Market Advisors, the report provides data and analysis to help Indiana’s legislature understand legalized igaming’s positive impact on the state, including increased tax revenue, strong consumer protections for its bettors, and the benefits to its land-based gaming operations.
John Pappas, iDEA’s State Advocacy Director, commented: “Indiana already has the experience and infrastructure in place through online sports betting to support igaming. Without even realizing it, Indiana consumers are using illegal online gaming sites that provide no consumer protections and zero state tax revenue.
“The state’s lawmakers can meet consumer demand by establishing a legal, competitive market that benefits the state economy and protects online players with regulatory safeguards.”
The report details that under the proposed 2022 legislation with an 18% tax rate, Indiana’s igaming market is projected to generate approximately $500m in new gaming tax revenue for the state over the next five years. It also showed that igaming revenues supplement, rather than supplant, land-based casino revenue.
Matt Bell, Executive Director of the Casino Association of Indiana, added: “Igaming in Indiana will modernize our industry and keep us competitive with our neighboring states that seek to extract Hoosier customers and Hoosier entertainment dollars from our state.
“We partnered with iDEA Growth for many reasons. iDEA Growth is a professional organization and the gold standard in the igaming industry. We mutually agree that the igaming market presents Indiana with an opportunity to expand our current regulated environment in a positive way, without impacting the land-based gaming revenue generated in the state.
“Just as mobile sports betting has grown the overall revenues for our industry, igaming will enhance our connection with existing customers and enable us to meet new ones in ways never before possible.”
The report also recommended the following legislation for igaming in Indiana:
- Only granting online gaming licenses to operators with online gaming experience, to be licensed and regulated by the Indiana Gaming Commission in partnership with a land-based entity.
- Only patrons within the state of Indiana to be allowed to place bets.
- A diverse igaming product offering – approved by the Indiana Gaming Commission and including numerous slot titles/themes, table games (house-banked and player-banked), and live dealer online offerings.
- Using the infrastructure and regulatory safeguards from the state’s mobile sports betting to ensure consumers have responsible gambling resources and support.