A Booming Indiana Gambling Market Wins $691 Million In Taxes

The data is available: The gambling industry contributed $691 million in taxes to Indiana in the 2022 Fiscal Year.

To be more specific, gambling in Indiana yielded slightly over $608 million in wagering tax, approximately $52 million in supplemental wagering tax, and a little over $31 million in sports betting tax. Collectively, these taxes contributed $691,470,187 to the state’s coffers.

The report quoted Greg Small, Executive Director of Indiana Gaming Commission, as saying:

Being appointed as the Executive Director by Governor Holcomb in September was an honor, and leading an agency that significantly contributes to the state’s economy was a privilege.

The gaming industry, after suffering from the negative effects of the pandemic in FY 21, made a strong recovery in FY 22. It set new national revenue records and the casinos in Indiana reported substantial annual growth, contributing to a surge in Indiana’s tax revenues.

In the Fiscal Year 2022, almost every month saw an increase in gambling taxes compared to the previous year, 2021. A growth of at least 16% was recorded in eight months of FY22.

Out of the eight months, five months recorded an increase of 21% or more compared to the same months in FY21.

What was the revenue of Indiana casinos in FY22?

Indiana casinos collectively earned $2.5 billion in Fiscal Year 2022, marking a $5 million increase from the previous year.

In particular, the most significant growth was observed in the casinos situated in northern Indiana, which experienced an increase of 26%, translating to $236 million for the year. This surge in the northern market is primarily attributed to the establishment of the new Hard Rock Casino in Gary.

The Hard Rock Casino in Northern Indiana topped the revenue charts by generating $395,359,030. This, in turn, resulted in a tax contribution of $109 million to Indiana.

In FY22, Horseshoe Hammon was the second-highest earner, raking in $374,261,916. The only other casino to surpass the $300 million mark was Horseshoe Indianapolis, earning $334,624,561 and ranking third.

What does an investment from Caesars mean for Indiana?

Small reported that the robustness of Indiana’s gaming industry was evident in Caesars’ decision to invest a total of $73.7 million in projects at the state’s two racinos in Shelbyville and Anderson.

Caesars’ investment in Horseshoe Indianapolis, specifically located in Shelbyville, included:

• Expanding the gaming floor by 25,000 square feet
• Boosted gaming positions
• Included food and drink facilities
• Generated around 100 jobs

This resulted in a $33.7 million expansion that was finished earlier this year.

Caesars has also invested $40 million in expanding Harrah's Hoosier Park in Anderson, starting this spring. According to Small’s report, the expansion will increase the facility’s size by 30,000 square feet.

The report states that Caesars’ investment will include a “high limit area, enhanced Caesars Rewards and promotional space, a new food outlet on the casino floor, and the creation of 100 new jobs.”

That project is projected to be completed by July 2023.

Vigo County to welcome new gambling venue in Indiana

The gaming industry in Indiana will receive another uplift with the licensing of the Vigo County casino by Churchill Downs.

“In his report, Small stated that the forthcoming two-year period will witness the completion of The Queen of Terre Haute. The project includes a high-end, resort-style hotel with 120 rooms, a rooftop bar, an event space, and a gaming floor. The latter will be equipped with 1000 slot machines and 34 table games,” Small said.

This project, which Small contributed to, will generate over 500 new jobs and is estimated to cost around $245 million. The groundbreaking ceremony for the new casino in Indiana occurred earlier in June.

Sports betting figures from FY22 in Indiana

In July 2022, sports betting taxes amounted to $1.6 million, an increase of 162.1% from 2021. Moreover, in September 2022, the revenue generated was $3.2 million, reflecting a 137.18% rise from September 2021.

In Fiscal Year 2022, at least 30% growth from Fiscal Year 2021 was recorded in a total of nine months.

In his report, Small noted that the taxes from sports betting rose 38%, increasing from $23 million in FY 21 to $31 million in FY 22.