Indiana’s governor is clearing up red tape, and it affects how the state’s sports betting industry will continue to do business.
After July 1 this year, a range of companies affiliated with the Hoosier State’s sports wagering market will no longer need to be licensed by the Indiana Gaming Commission (IGC). The move is the first time a state has loosened regulations on sports betting suppliers in the post-PASPA era.
That is the result of a rule change instigated by the gambling regulator that was prompted by Gov. Mike Braun’s executive orders earlier this year. Braun ordered all state agencies to eliminate licensing requirements that were deemed to be duplicative or burdensome and not in the public or industry’s best interest.
The Commission deemed that the rule that requires “sports wagering registrants” (SWRs) fell into that category as there is a low level of risk associated with these types of entities, and so it is abolishing the licensing requirements.
Who no longer needs licensing?
The IGC defines sports wagering registrants as individuals or entities that provide goods or services related to sports wagering, but whose functions are not directly involved in the core aspects of actually taking bets or managing customers’ wagering accounts.
Historically, such entities would have been required to register with the IGC but generally faced a less stringent licensing process compared to service providers.
For example, a marketing affiliate company whose services are limited to directing potential customers to a sportsbook via adverts or links, or a payment processing company that assists with sports betting account funding and withdrawal requests, would no longer need a license after July 1.
A list of currently registered SWRs as of May 2025 lists hundreds of companies, with recognizable names ranging from marketing companies to gaming industry data firms and payment processors, as well as broadcasters like NBCUniversal and Netflix, sports organziations such as the Indianapolis Colts and the PGA Tour, ticketing companies like Vivid Seats and social media and other media platforms including Facebook, TikTok and Google.
As for who it doesn’t include, it appears the SWR category does not encompass technology platform providers, geolocation services, compliance and anti-money laundering specialists and some other categories.
Indiana loses some loose change
Ultimately, it would seem to mean that not only are qualifying entities spared the costs and process of applying for and securing licenses, but licensed sportsbooks such as FanDuel and DraftKings may have a wider group of partners to choose from. Previously, authorized operators were limited to selecting from licensed collaborators. The IGC emphasized that licensed sportsbooks are ultimately responsible for their advertisements and partnerships associated with marketing efforts.
Eliminating the need for these companies to be licensed also means the state will forego the fees that the companies have been paying to the state, not that those typically amount to much.
SWR applicants currently pay a non-refundable application fee of $500 per license application. Per Indiana Public Media, over the last five years, the total in fees collected by the Commission for SWR licensing averaged a little more than $60,000 a year.
