Online gambling in the US is gaining traction as more states look into the economic and social benefits of regulated iGaming. Wyoming and Indiana are the latest to join the party, with expanding gaming options quickly becoming a national trend. Each state’s approach is unique to their needs, but both are making big steps towards legalizing and regulating online casinos and other forms of digital gambling.
In Indiana, Representative Ethan Manning’s introduction of House Bill 1432 (HB 1432) is a big deal for the state’s gaming scene. The bill would add online table games, slot machines and even digital lottery games to Indiana’s already robust gaming industry. With a focus on economic growth and player protection, Manning’s bill is a response to the growing demand for convenience and the success of online gaming in other states.
This comes after years of growth in Indiana’s gaming market. The state legalized online sports betting in 2019 and platforms like Bovada have seen a lot of interest from Indiana bettors looking for convenient wagering options. HB 1432 builds on that foundation and could put Indiana among the top states for iGaming if passed.
What HB 1432 Offers
HB 1432 is a roadmap for online gambling in Indiana’s existing gaming framework. One of the key features is the inclusion of authorized operators like riverboat casinos, racetrack casinos and current gaming license holders so established players in the state’s gaming industry can easily transition into the online space. This way they can leverage their expertise and minimize disruption to the market.
Taxation is another key aspect of the bill. HB 1432 proposes a 22% to 30% tax on adjusted gross receipts from interactive gaming, the same range as Pennsylvania and New Jersey. The revenue would go towards public services like local government funding, horse racing industry support and problem gambling programs. This is in line with the national trend of using gambling revenue to fill state budgets and fund social programs.
A unique part of the bill is its focus on consumer protection. It requires the creation of the Indiana Responsible Gaming and Problem Gambling Services Program, funded by operator fees. This shows the state is serious about addressing gambling addiction and making sure the expansion of online gaming doesn’t come at the expense of the player.
Indiana’s iGaming Journey: Bumpy Road
Indiana’s road to iGaming has been rough. Efforts to legalize online gaming started years ago but have hit many roadblocks, including political opposition and a high profile corruption scandal. In 2023 Rep. Manning introduced HB 1536, a bill to legalize online table games and lotteries. Despite the potential for big revenue, the bill never got a hearing. Lawmakers said they needed more time to weigh the pros and cons of online gaming.
The state’s hesitation was further exacerbated by the Sean Eberhart scandal. Eberhart, a former Indiana House Rep and key player in gaming legislation, pleaded guilty to conspiracy to commit honest services fraud. His ties to Spectacle Entertainment, an Indiana casino company, hung over the entire gaming industry and stalled out legislative efforts. Senate leadership said no online gaming legislation would move until trust was restored in the process.
But HB 1432 is a step towards moving past those challenges. By focusing on transparency and accountability it’s an effort to restore trust in Indiana’s ability to regulate and grow its gaming industry.
A National Trend
Indiana’s iGaming push is part of a bigger national movement. States like New Jersey, Pennsylvania and Michigan have already established online gaming markets and are seeing big revenue. In 2022, New Jersey’s online casinos generated $1.66 billion.
These states have shown that regulated online gaming can coexist with brick and mortar casinos, giving consumers better payment choices while maintaining oversight. For example, Michigan’s iGaming market launched in 2021 and generated $1.4 billion in its first full year. A well regulated market can grow quickly.
Wyoming is another state exploring iGaming and has a different approach. Its House Bill 162 focuses on licensing fees and revenue distribution, with funds going to schools, counties and problem gambling programs. By tailoring its framework to local needs Wyoming shows the importance of flexibility in gaming legislation.
What’s at Play for Indiana
Indiana has a lot to gain. The state has shown it can integrate new forms of gaming with the success of online sports betting. Since sports betting was legalized in 2019 Indiana has become one of the top sports wagering states, generating $46 million in tax revenue in 2022 alone. iGaming could add to that.
But it all depends on the state addressing the outstanding issues. Lawmakers need to make sure the regulatory framework is strong enough to prevent fraud and protect consumers and to create a competitive market that attracts good operators. Transparency and public trust will be key to overcoming the skepticism that has held back previous attempts.
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Brian Smithson 
