Why Indiana Online Casino Legislation Never Got Off The Ground

Entering 2021, there was a lot of excitement about Indiana legalizing online casino gambling.

Back in August, Sen. Jon Ford announced he was working on a bill and conducted his first webinar to gain momentum.

In October, he had completed initial language work. He filed legislation in early January and expressed his desire to have a hearing in his Senate Public Policy Committee by the end of that month.

However, his committee never received the bill and it expired last week when it did not advance from the committee before the Senate deadline for bills.

Ford had a conversation with Play Indiana regarding why his bill did not receive any consideration in this legislative session.

COVID obstructs education about online casinos

The coronavirus pandemic resulted in a reduction of committee session days, in-person interaction, and lobbying in the Indiana legislature.

Ford said,

“I believe I didn’t fully appreciate the importance of education. Many lawmakers don’t comprehend the concept of iGaming, and several assumed it had already been approved. Given the current pandemic and the reduction in face-to-face interactions, the timing was not ideal.”

Though Ford didn’t consider it a major factor, a scandal involving an Indiana casino also diverted attention from internet gambling.

“Ford stated, “Two years ago, we passed a significant gaming bill and there was a belief that people were not prepared for another one yet.”

Ford is disheartened that the bill wasn’t allotted to his committee to enable a formal discussion. This was a decision made by the Senate leadership.

The leadership was genuinely attempting to moderate extremely detailed legislation this session. Observing the Senate, we saw fewer pieces of legislation being filed. I believe we were uncertain about what to anticipate with COVID.

Economic need is not as high as expected.

Discussions between Indiana casinos and Ford on internet gambling legislation began when the pandemic forced the closure of casinos. The state tax revenue, which includes income from casinos and income taxes, was also expected to be heavily affected.

A need for new revenue was created. However, in 2020, the casino revenue in Indiana only saw a decline of 7.1%. This is in stark contrast to a 57% drop in New York and a 56% decrease in Michigan.

Ford explained,

“Initially, I was somewhat hoping that casinos would demonstrate a greater loss. However, making such a claim is now challenging for them since some are performing quite impressively. I believe the shutdown compelled them to examine their properties and concentrate on improving efficiency. Some have even told me that it has enhanced their profitability.”

Also, state tax revenues stabilized, leading to a budget surplus.

“Contrary to our expectations and the situations other states are facing, we don’t have a budget deficit,” said Ford. “We are not in desperate need of revenue, which is a favorable position to be in.”

The online casino could have a better opportunity next year.

Ford intends to bring back his bill in the next session, when there are expected to be fewer distractions.

Hopefully, the legislature will return to normal, free from the constraints of the pandemic.

The investigation into casino executives at Spectacle Entertainment by the Indiana Gaming Commission is likely to be resolved.

However, Ford isn’t going to wait until next year to begin. He stated that he will persist in conducting educational webinars to enhance his colleagues’ knowledge on the topic.

Ford assisted in passing the sports betting legislation in Indiana in its second year of deliberation, and he believes he can achieve similar success with iGaming.

“Bills often don’t pass in their first year,” Ford commented. “The case was the same with sports betting. After introducing the language, it didn’t progress. So we spent a year educating on it, and when we returned, it was quickly passed.”