Indiana Online Casinos Could Generate Nearly $1 Billion In Yearly Revenue

Legislation that would authorize online casinos in Indiana is set to be proposed by state lawmakers.

Preparations are underway for a significant drive to expand gambling. The bill is expected to gain momentum in the initial part of 2023.

Online casinos in Indiana would significantly boost profits for both gambling firms and the state.

Play Indiana projects that a fully developed industry could produce more than $993 million in annual revenue. This could result in a minimum of $178 million in yearly taxes for Indiana.

Campaign for internet casinos in Indiana coming soon

The legislative cycle in Indiana will not resume until January 2023. At that time, legislators will attempt to advance a new bill for online casinos through the state’s legislative process.

If successful, Hoosiers would have the opportunity to engage in classic casino games like blackjack, slots, and poker right from their homes. Anyone who is of legal age could gamble using their smartphone or computer.

The aim is to inaugurate online casinos in the state by Sept. 1, 2023, however, this date may still be altered.

Sen. Jon Ford and Rep. Ethan Manning have led the efforts to legalize online casinos. They attempted to pass legislation in 2022, but the initiative did not gain significant momentum.

Ford, the original lawmaker advocating for legalization, had previously speculated this year that his bill would stand a better chance of passing in the House than in the Senate.

Rep. Manning steps in at this point. In 2022, she introduced the bill to the House on behalf of Ford and may potentially do the same in 2023.

Key components of the bill proposed by Ford and Manning include:

• Permits Indiana’s casinos and racinos to provide online casino games;
• Legalizes online poker;
• Every casino partner has the potential to partner with three distinct brands.
• Permits the Hoosier Lottery to provide online versions of its games;
• Casinos are required to pay $500,000 for their licenses, and the renewal fee each year is $50,000.
• Revenue from online casinos would be subject to an 18% tax.
• A 3.33% increase in taxes would be directed to the Addiction Services Fund.

Indiana’s online casinos will generate hundreds of millions of dollars in annual revenue if everything goes according to plan.

Online casinos in Indiana have enormous potential.

Given the recent surge in the gambling industry, it appears to be the logical subsequent move for the state.

The potential revenue of $993 million would make numerous gambling companies eager to place bets in Indiana.

Many of these companies have already begun accepting wagers for the sports betting segment of Indiana’s gambling industry.

For instance, sportsbooks in the state are operated by DraftKings, FanDuel, Caesars, and BetMGM. They will all be eager to launch online casinos if they become legalized in Indiana.

Approximately $178 million in taxes is insignificantly small. The state could significantly boost its income through online casinos.

This is money that could be allocated to improving education services, repairing the state’s notoriously damaged roads, or any other program that legislators might conceive.

The size of online casinos will surpass that of sports betting.

Indiana’s gambling industry would naturally progress to online casinos. Nonetheless, they wouldn’t be the inaugural major online gambling platform to launch in the Hoosier State.

Since 2019, Indiana has had online sports betting, accumulating over $10 billion in wagers to date.

That’s a remarkable figure, however, online casino revenue in Indiana would soon surpass the numbers generated by sports betting.

Since the inception of betting, sportsbooks in the state have generated revenues close to $790 million.

In simpler terms, the revenue from internet casinos for just one year, which is $993 million, would significantly surpass the revenue from sports betting accumulated over three years.

The tax dollar aspect further widens the gap between online casinos and sports betting.

Since 2019, sports betting has generated slightly over $75 million in taxes, which is less than half the $178 million that online casinos could potentially generate in just one year.

The evolution of tax projections could continue.

While the revenue estimate of $993 million from Play Indiana is certain, the tax figures are somewhat uncertain.

A bill of this magnitude will undergo multiple rounds of debate before it can reach Gov. Eric Holcomb’s desk.

The tax rate for online casino revenue could change during that time.

The annual tax projection of $178 million from Play Indiana should be viewed as a conservative estimate for Indiana’s future.

We have based our projection on the current proposed tax rate of 18% in the bill. However, this number may change as lawmakers delve deeper into the details of the legalization process.

Should the tax rate shift, it wouldn’t be surprising to witness it rise to potentially 40%. This could potentially increase Indiana’s tax revenue from online casinos to almost $400 million annually.

Indiana maintains its position as a leader in gambling

When it comes to adopting new forms of gambling, Indiana has been one of the most progressive states in the entire country.

Hoosiers were pioneers in the US in terms of access to legal sports betting. If the state gives the green light to online casinos next year, Indiana residents will again be at the forefront.

The following states have legalized online casinos in some form, ranging from limited options like poker only, to a full range of offerings, as Indiana is attempting to incorporate:

• New Jersey
• Pennsylvania
• Michigan
• Nevada
• West Virginia
• Connecticut
• Delaware

Pennsylvania and New Jersey are powerhouses in generating revenue from online casinos, a feat attributed to their larger population compared to Indiana. Their geographical closeness to New York also gives them an advantage.

Indiana is more likely to reflect Michigan’s potential market size rather than New Jersey’s.

In 2021, the inaugural year for the market, online casinos in Michigan generated $1.1 billion in revenue. This figure slightly exceeded the $993 million projection for Indiana by Play Indiana. The 2020 U.S. Census recorded that Michigan’s population exceeded 10 million, while Indiana’s was less than 7 million.

No matter where Indiana’s statistics stand in national rankings, the state would greatly benefit from online casinos. A new form of entertainment could be available to Hoosiers sooner rather than later if lawmakers manage to legalize them in the coming months.