Indiana's Online Lottery and Casino Bill Fails to Advance This Session

Indiana will not proceed this legislative session, House Speaker Todd Huston confirmed on Thursday. House Bill 1432, which aimed to expand the state’s gambling offerings, cleared the House Public Policy Committee but failed to secure a hearing before the Ways and Means Committee, which was expected to evaluate the financial impact of the proposal.

Legislative Hurdles and Lack of Consensus

Describing the bill as intricate, Huston pointed to the challenges in reaching an agreement among stakeholders. “And I think, you know, just trying to find something there was some consensus on, felt like it was a pretty tough spot to be,” he stated. The proposal sought to permit Indiana’s licensed casinos to offer online casino games while also allowing digital lottery sales through the Hoosier Lottery.

The bill’s sponsor, Rep. Ethan Manning, R-Logansport, estimated that the expansion of online gambling, combined with an increase in taxes on sports betting, could generate over $300 million in additional annual revenue for the state. Despite the potential financial benefits, opposition arose from within the gaming industry. At least one casino opposed the measure, raising concerns about its impact on existing businesses.

Huston acknowledged these concerns, stating, “There’s all sorts of moving parts about how it impacts certain communities, what it does to the overall gaming environment in Indiana. I think all those things just make it complex to work through.” Some opponents worried that digital gaming could reduce revenue from traditional, in-person casinos and lottery sales.

Responsible Gambling Measures

A significant provision of the bill included the creation of a new responsible gambling program, which would be funded through fines imposed on casinos. While Indiana’s past initiatives have primarily focused on public awareness campaigns, this new program aimed to treatment and research related to gambling addiction.

The Hoosier Lottery, a quasi-public entity, expressed for online lottery legalization, arguing that digital sales would help sustain revenue and attract new players. If the legislation had ed, Indiana would have ed 14 other states, including Michigan, in offering online lottery games.

For now, efforts to legalize online casino gaming  and lottery sales in Indiana remain stalled, with no indication of when the proposal might be revisited.

Source:

”iGaming proposal for lottery and casinos dead for the session”, indianacapitalchronicle.com, February 13, 2025.