Indiana legislators on Tuesday cleared another hurdle in their push to bring legalized online casino gaming to the Hoosier State.
A proposal authorizing iGaming passed through the House Public Policy Committee on a 9-2 vote, advancing a bill that would allow residents to play games without needing to visit a casino.
House Bill 1432, introduced by Republican Rep. Ethan Manning, could help bring Indiana more than $300 million annually in new revenue, according to estimates. The state has had legal online sports betting since 2019, with the total amount of bets placed surpassing $7 billion (fifth-most of any U.S. state).
Although it has long been on the short list of states to add iGaming, previous attempts have failed to gain enough traction. A widely-known issue was Republican Rep. Sean Eberhart’s corruption trial, which concluded with Eberhart pleading guilty to conspiracy to commit honest services fraud to benefit a local casino company. He was sentenced last July to one year and one day in federal prison and fined $25,000.
Proponents such as Manning have noted the bill would help bring more oversight to illegal betting practices while allowing people to play popular games like poker, blackjack and roulette on their phone.
“Hoosiers are already playing casino games online — just Google it,” Manning said while introducing his legislation.
“This is happening already. Let’s authorize it, let’s regulate it, let’s make it appropriate, and obviously we see huge potential for tax revenue as well.”
For context, Michigan, one of seven states with legal online casinos, earned $2.44 billion in gross revenue from iGaming in 2024. That trailed only Pennsylvania ($2.71 billion), while New Jersey ($2.38 billion) was a close third.
The bill proposes taxing iGaming operators at a rate of 26% through July 2026, followed by a gradual increase of up to 30% based on operator revenue. Most tax revenue would be earmarked for the state’s general fund. It also calls for establishing the Indiana Responsible Gaming and Problem Gambling Services Program, of which the Indiana Gaming Commission is required to allocate $500,000 annually. Only existing casinos — there are currently more than a dozen in Indiana — and horse racing tracks would be eligible to apply for licensing.
If approved, Indiana would also become one of 14 states with digital lottery games.
A Sept. 1 launch is possible for online casino play, though significant steps toward legalization remain. Brianna Doura-Schawohl, a representative from the Campaign for Fairer Gambling, argued that expansion would only create more problems.
“The products that you’re discussing in this bill are thought by researchers to be 10 times more addictive and dangerous than other gambling products,” Doura-Schawohl noted.
Several other states are expected to join Indiana’s efforts to add online casino play in the near future, though growth has been slow nationwide. Illinois, Louisiana and Maryland are seen around the industry as the top candidates for expansion. Another candidate, Virginia, has already tabled its prospects until 2026.
Of course, predicting what happens next is complicated, especially when it involves legislation.
Doug is a seasoned sports writer/editor with bylines for the New York Times, Associated Press and CBS Sports. He also has extensive experience in the betting industry, including work for Point Spreads. Prior to that, he covered UConn women's basketball and football for Hearst Connecticut Media.
