House Committee Approves iGaming Proposal in Indiana
Expertise: iGaming, Online casinos
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House Bill 1432 passed by a committee vote of 9-2 on Tuesday, following a hearing that featured testimonies from lawmakers, industry experts, and tribal gaming representatives. Several amendments were also proposed during the hearing, all of which were adopted.
Under the iGaming legislation sponsored by Rep. Ethan Manning, the Indiana Gaming Commission would oversee the state’s online gaming industry. Casinos and racetracks would pay $500,000 each for licenses, with the option to host up to three skins.
Additionally, the bill proposes a 26% tax rate on adjusted gross revenue for iGaming operators during their first year, followed by a tiered tax structure in subsequent years.
The measure includes a provision requiring live dealer online table games to be hosted from Indiana. It also establishes the Indiana Responsible Gambling and Problem Gambling Services Program, which will receive an annual allocation of $500,000 from the Indiana Gaming Commission, with operators covering related RG and PG expenses.
Tighter Regulations and Responsible Gambling
Among the amendments passed on Tuesday was a provision that mandates the state’s Alcohol and Tobacco Commission to provide training for alcohol servers in establishments that offer gaming.
Legislators also introduced an amendment to HB 1432 that would strip gaming companies of their licenses if they engage in illegal or unregulated markets. They also expanded the iGaming bill to include tribal casinos and allocated 2% of online lottery revenue to the Lottery Commission Fund, which will fund incentives for retailers promoting iGaming.
Furthermore, the state’s sports wagering tax rate may be revised, with an amendment proposing a 20% tax on online sports wagers and a 9.5% tax on retail sports wagers.
At the hearing, the committee also passed House Bill 1433, a separate measure that would allow veterans groups, bars, and charitable organizations to house electronic pull-tab machines.
The bills now advance to the House and Senate for consideration and potential approval in the coming months.
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Pokagon Tribe Endorses iGaming Bill
Meanwhile, the Pokagon Gaming Authority, which operates a casino in South Bend, has expressed its support for the iGaming bill. The Tribe believes that the measure will create a more equitable gaming landscape in the state.
The bill as amended will achieve the Pokagon Band’s primary goals. First, it will allow the Pokagon Band to participate in iGaming on equal footing under a state license. Secondly, the bill accounts for the unique sovereign status of the Pokagon Band as a government and federally recognized tribe and reflects the relationship between Pokagon and Indiana.
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