The Indiana House Committee of Public Policy has passed House Bill 1432 progressing a measure that aims to legalize both online lotteries and online casinos.
HB 1432, introduced by Rep. Ethan Manning, passed on Tuesday in the committee after a hearing that included testimony from legislators, operators and tribal gaming authorities. The hearing also included the consideration of amendments, which were all passed.
Bill includes multiple skins and responsible gambling program
HB 1432 proposes the Indiana Gaming Commission to regulate iGaming with state casinos and racetracks each allowed to acquire one license that costs $500,000 upfront and have up to three skins. The measure calls for a 26% tax rate on adjusted gross revenue for operators in the first year of operation before a tiered structure is implemented.
It also mandates the establishment of the Indiana Responsible Gambling and Problem Gambling Services Program. Under HB 1432, the Indiana Gaming Commission is required to allocate $500,000 a year to the program and will charge operators for RG and PG costs.
New amendment more than doubles sportsbook tax
On Tuesday, the measure saw several amendments approved. A proposed amendment included the state’s alcohol and tobacco commission to provide training to alcohol servers who work in establishments that offer gaming. Lawmakers also proposed an amendment to HB 1432 that revokes licenses for gaming companies that operate in illegal markets. A change of the state’s sports wagering tax rate is also under consideration with an approved amendment to raise the tax on online sports wagering to 20% with retail wagers at 9.5%.
Active gaming law in Indiana mandates a flat rate for both retail and local bets at 9.5%.
Lawmakers also passed an amendment to allow tribal casinos to participate in iGaming and allocate 2% of online lottery revenue to the Lottery Commission Fund. The commission is tasked with using those proceeds to pay retailers that promote iGaming.
Pull tabs were also a top of discussion during Tuesday’s hearing with Indiana lawmakers. The pull tabs were passed in a separate measure, HB1433, during the same committee meeting.
“We have electronic pull tabs coming to local bars, taverns and charity organizations that offer fixed games because you know exactly how many winners are going through that machine,” said state Rep. Cory Criswell concerning HB 1432 during Tuesday’s hearing.
Tribal support in Indiana
The bill with the addition of the amendments has garnered support from the Pokagon Gaming Authority, which owns a casino in South Bend. The tribal gaming authority is voicing its support of HB 1432’s latest iteration as it evens the playing field in the state.
“The bill as amended will achieve the Pokagon Band’s primary goals,” said Pokagon Gaming Authority General Counsel Paul Shagen during the hearing. “First, it will allow the Pokagon Band to participate in iGaming on equal footing under a state license. Secondly, the bill accounts for the unique sovereign status of the Pokagon Band as a government and federally recognized tribe and reflects the relationship between Pokagon and Indiana.”
HB 1432 has also received backlash on Tuesday from groups including the Campaign for Fair Gambling.
