Here’s The Scoop On Indiana’s Online Casino Legislative Push

Indiana is the first state to introduce online casino language for a legislative push in 2021.

Sen. Jon Ford disclosed information about his upcoming internet gaming bill to Play Indiana.

Ford plans to introduce an online gambling bill with the intent of reviving Indiana’s 13 casinos and racinos, which have had a difficult year due to the coronavirus pandemic.

The legislation only encompasses casino games like slots, blackjack, and roulette, but does not aim to legalize online poker.

Ford forwarded the draft bill to the Indiana Legislative Services Commission for final touches. He has plans to start advocating for the bill in December, ahead of the legislative session commencing in January.

What does the Indiana online casino bill contain?

These are some of the crucial components of Indiana’s iGaming bill:

• Approves online casino operations for 14 casinos/racinos, including the anticipated Rocksino in Terre Haute.
• Permits each casino to partner with a maximum of three online brands, also known as skins.
• Establishes the tax rate at 15%.
• Establishes an initial licensing fee of $100,000, with an annual renewal fee of $50,000.
• Sets up the Indiana Gaming Commission as the regulator.

Ford unveiled a conflict among Indiana casinos regarding the issue of online skins. Some casinos are advocating for the allowance of five online skins like in New Jersey, which includes two designated for online poker. However, some prefer a limit of less than three.

He did not incorporate a percentage for local municipalities. However, he anticipates a move to incorporate such a local share assessment into the bill. He pointed out that in Pennsylvania, casinos are required to pay 2% of their revenue to the municipalities where they are situated.

Ford suggested that the sports betting bill acted as a blueprint for online casino legislation in Indiana. However, he made modifications in one area after being unsatisfied with the outcomes in sports betting. He incorporated provisions to permit gaming companies licensed in other states to obtain a temporary license in Indiana.

“We’re making efforts to expedite the setup process,” said Ford. “The licensing process for sports betting took more time than we anticipated.”

Motivations for Indiana to engage in online gaming

Ford predicts that the state could earn between $45-$60 million in annual tax revenue from the online casino project.

Indiana, having $1.8 billion in cash reserves, will not face as severe financial challenges as some states in the upcoming budget process.

Nevertheless, Indiana casinos were shuttered for several months due to the coronavirus. Ford observes a heightened interest in online activities amid the pandemic.

Ford stated, “The COVID experience has shown us that technology and remote operations have significantly accelerated. Our casinos are currently operating at 50% capacity, and given the current COVID numbers, I don’t anticipate any changes before we reopen in January.”

Ford will argue for legalization by emphasizing the increased dependence on technology and the need to expose the black market.

Indiana spearheads national momentum for online casinos

In a bid to boost revenue and support their casino industries, numerous states are likely to consider internet gaming in 2021. At present, online casinos have received authorization in New Jersey, Pennsylvania, Michigan, Delaware, and West Virginia.

This week, an online panel at the Global Gaming Expo discussed the future of online gaming. Gaming analyst for Eilers and Krejcik Gaming, Chris Grove, stated his expectation for the number of states with internet gaming to double by 2025.

Grove stated, “We are becoming more receptive to the idea that the relatively quick growth of online casinos is beginning to lag behind the momentum enjoyed by sports betting.”

Howard Glaser, the head of government affairs and special initiatives for Scientific Games, affirmed that if every state with a casino industry adopted online gaming, they could collectively generate $2.5 billion in tax revenue.

The primary consideration for states when shaping policy next year will be their existing revenue deficits. Although the process may not conclude by the end of the year, I predict that iGaming will become a focal point in state gaming policy discussions in the upcoming year. These discussions will likely continue to evolve over the following years.

Future direction for Indiana’s online casino legislation

The next legislative session in Indiana starts early January and extends until late April.

Ford, a leader in the successful introduction of sports betting in Indiana, has demonstrated experience in rallying support among colleagues for gaming legislation.

Ford stated that the bill will initiate in the Senate, and he hopes to expedite its transfer to the House. However, due to the ambiguity surrounding the legislature’s course of action due to COVID-19 safety considerations, he is uncertain about the bill’s progress speed.

“Ford stated, “We plan to give our best effort, educate our colleagues, and let’s see what transpires.”