Indiana Businesses Push To Legalize Video Gaming Terminals

A new proposal could introduce Video Gaming Terminals (VGTs) in Indiana.

The proposed law aims to widen gambling in the Hoosier state by permitting games such as video poker and blackjack in bars and restaurants.

The potential change will be debated by Indiana’s General Assembly in the upcoming legislative session, which lasts from January 4 to April 29. This provides a few months’ window to accomplish this task.

Video Gaming Terminals in locally owned restaurants in Indiana

Should the proposal gain momentum, it could result in an intriguing alteration to your favorite bar or restaurant.

Many locations in Indiana already have enough space for VGTs, as they are typically smaller than a pinball machine.

The push for VGTs is being spearheaded by a not-for-profit organization, the Indiana Licensed Beverage Association. Brad Klopenstein, the president of the association, argues that VGTs could provide additional revenue for all parties involved.

We’re discussing potentially generating around $100,000 per location annually. While this isn’t an enormous sum, it would be divided into thirds among the operator, the location, and the county government.

A key distinction between VGTs and other forms of Indiana gambling such as sports betting and casinos would be the splitting of revenue.

The tax revenue generated from those forms of gambling is currently directed into Indiana’s general fund. However, under the new VGT proposal, the tax money would be allocated directly to the county hosting the machine.

For instance, when you utilize a VGT at your preferred bar in Marion County, the tax revenue generated is directed to the county and Indianapolis city, instead of being distributed across the entire state of Indiana.

The concept of playing a few rounds of blackjack while enjoying beers could certainly appeal to many Hoosiers. However, turning this idea into reality won’t be easy. The expansion of gambling is often a challenging proposition in conservative states like Indiana.

A larger push for online casinos could also overshadow VGTs.

The busy 2021 legislative session in Indiana

The year’s opening legislative session will be a hectic one.

A new bill from Sen. Jon Ford has put online casinos on the legislative agenda for the coming months. As a result, Video Gaming Terminals (VGTs) may have to take a back seat for the time being.

Online casinos, being incredibly profitable, are likely to take precedence over VGTs if a choice has to be made between the two. They are even more profitable than sports betting.

Sports betting in Indiana, which began in September 2019, has only generated approximately $14.8 million in taxes. However, based on Ford’s projections, online casinos could potentially produce annual tax revenue of $45-60 million.

Ford’s proposed legislation would make online casinos legal across the state. This means, if everything goes according to plan, you could be playing online blackjack from the comfort of your own sofa.

However, similar to VGTs, establishing online casinos will be a challenging task. Even reaching this point has required slow and steady progress.

The progression of gambling in Indiana naturally leads to VGTs and online casinos. Gamblers across the state are eagerly hoping that the recently elected legislature will legalize both in the current session.