Indiana House Committee Approves Online Casino Bill

By John Isaac,
Editor at online-gambling.com

John Isaac Editor at online-gambling.com

John Isaac is an editor with many years of experience in the gambling industry. He writes expert articles on card games like blackjack and poker. In addition, he is also well aware of the US gambling laws and the Indian and Dutch gambling markets. You can rely on verified information and insightful details.

• Twitter
• Email

More About John Isaac

Last updated: February 8, 2025

On January 28th, the Indiana House Public Policy Committee approved HB 1432. The bill would authorize online draw games and e-Instant games, while HB 1433 would legalize e-tabs. Although this marks a significant step for online gambling in Indiana, this legislation still has to be approved by a sceptical Senate. Check out this article to learn more about the potential impact of these bills.

Indiana’s Gambling History

Indiana’s gambling history dates back to 1988 when voters approved a constitutional amendment to legalize lottery games. Pari-mutuel betting was legalized a year later, but it would take until 1995 for the first riverboat casino, Casino Aztar Evansville, to open. Here are a few of the most critical moments in Indiana’s gambling industry:

• 1988 – Lottery games legalized
• 1989 – Pari-mutuel betting legalized
• 1993 – Riverboat casinos authorized
• December 7th, 1995 – The first riverboat casino opens
• 2007 – Hoosier Park and Indiana Downs allowed to have 2,000 slot machines
• 2015 – Riverboat casinos were allowed to build land-based facilities.
• 2019 – Sports betting is legalized

While most forms of gambling are legal in Indiana, lawmakers were faced with many obstacles to get here. Even after casinos were legalized, the application process was stalled due to referendums and a judge ruling against the riverboat law. Similarly, online casino bills were put on a moratorium in 2024.

The moratorium was because former state representative Sean Eberhart pleaded guilty to corruption charges. He had been receiving a $350k salary from Spectacle Gaming to push online casino bills. However, online casino discussions resumed in 2025.

New Online Casino Bill

The Indiana House Public Policy Committee approved the HB 1432 9-2. One of its most important provisions is the legalization of online casinos and online lottery games and the establishment of the Indiana Responsible Gambling and Problem Gambling Services Program. Here are a few other key provisions in the bill:

• Indiana Gaming Commission will regulate online casinos
• $500,000 upfront fee for a license that allows three skins
• IGC must provide $500,000 a year for the responsible gambling program
• Tribal casinos can participate in iGaming
• Indiana Lottery Commission can operate online draw and instant games
• 2% of lotto revenue goes to the Indiana Lottery Fund to pay retailers promoting iGaming
• 26% tax rate on operators for the first year, followed by a tiered structure

While the bill will likely pass the House vote, as it now moves to the Ways and Means Committee, the Senate may be a challenge. Although Representative Ethan Manning introduced this bill, the senate may still be apprehensive due to the corruption scandal. Meanwhile, there is also heated discussion about HB 1433, which was proposed alongside this bill.

E-Tabs and Cannibalization

Indiana lawmakers are also discussing ways to improve charity gambling revenue with HB 1433. According to this bill, electronic pull tabs and their devices will be allowed for charity gaming or establishments like bars and taverns. Lawmakers believe this could increase the revenue of small businesses by up to $3,000,000 a year.

However, some casino operators oppose this bill due to concerns about cannibalization. Representatives of Churchill Downs and Penn Entertainment believe that online gambling and electronic pull tabs will take away revenue from land-based casinos. However, some supporters question these arguments as both operators have online sportsbooks and casinos, with Penn Entertainment operating in 20 other states.

Responsible Gambling and Sports Betting Tax

Other concerns brought during the discussion include responsible gambling. While the bill will create a program to help prevent problem gambling, advocates from organizations like Campaign for Fairer Gambling believe online casinos put players at risk. They instead call for stricter regulations of illegal gambling sites.

The bill also proposes increasing the sports betting tax from 9.5% to 20%. Some operators wish for further discussions on this tax, especially since a separate bill would raise this tax to 11%. Last year’s drop in revenue, has also sparked some concerns. This proposal comes from Amendment 34, which states that any operators working in illegal markets are prohibited in Indiana.

Lawmakers claim that illegal gambling already exists in the state and that legislation is how it can be curbed. Aside from banning illegal sites, amendments to HB 1432 allow the Pokagon Band of Potawatomi Indians to operate online casinos. Amendment 32 would also increase the funding cities and counties receive from online casino revenue and add to the state’s fire pension.

Conclusion

While the bill is not finalized, it is an essential development in Indiana’s gambling legislation. Representative Manning has previously introduced several unsuccessful bills, and the corruption scandal likely weighs on lawmakers’ minds. However, there is hope the bill will pass, and we will keep you updated on future developments.