The story of Indiana’s online casino aspirations just hit a rough patch after House Bill 1432 failed to get a Senate Committee hearing. Following this latest development, the state’s online casino industry potentially faces a long wait until the matter can be presented once again.No Online Casino Legalization in Indiana During 2025
If HB 1432 had succeeded, it would have paved the way for Indiana residents to legally play at online casinos and allowed the Hoosier Lottery to sell tickets online. However, this latest setback has put all plans on hold, leaving a trail of disappointments in its wake.No Online Casino Legalization in Indiana During 2025
An earlier bill proposed by Rep. Ethan Manning had sought to legalize online gaming in partnership with land-based venues, while also moving for the expansion of the Hoosier Lottery. It was an ambitious proposal that showed promise, especially as it cleared the House Public Policy Committee by a good margin.No Online Casino Legalization in Indiana During 2025
Manning’s proposal designed an exhaustive regulatory framework that would position Indiana among the country’s top online gaming destinations. He planned to bring games like poker, blackjack, roulette, and slots to the state through licensed riverboat casinos, racetracks, and other eligible venues..
House Bill 1432 had plenty going for it, including provisions for the state. It proposed a tax revenue of over $300 million equating to a 22-30% tax rate on gross gaming receipts. The numbers looked convincing on paper and Indiana looked primed to join the growing list of states accruing tax revenue from gambling sites.
For comparison, Michigan received $450 million in tax revenue from online casinos during 2024.
If there were any doubts about the success of the proposal, you only need to look back a short while to find valuable precedents. Indiana’s sports betting platforms generated over $404.4 million in 2023, with even more projected for 2024. Manning insists that iGaming is “a lucrative field” and that tax revenue accrued from the industry can help the state in numerous ways.
Speaker Todd Huston seemingly wrote the Bill off, judging from his comments to the Indiana Capital Chronicle, saying that tHB 1432 was “pretty dead”. He put the failure down to a sentimental perception of gambling and how it might impact the wellbeing of Indiana’s communities.
While Indiana permitted legal sports betting back in 2019, there are fears that online casinos may threaten the continued survival of the bricks and mortar casinos in the state. Operators fear that an influx of online casinos would pose a huge threat to their existence, voicing concerns that most people would likely be more comfortable playing from home. The issue of problem gambling was also raised, despite a clear and concerted campaign to cover it within the scope of the Bill.
The stalled legislation included considerations that were not previously included in the last one. While previous attempts to lobby the bill were geared towards awareness campaigns, HB 1432 provided for a responsible gambling program. The bill made provisions for the program to direct resources to treatment services as well.
With regulated online casinos now off the cards, there are fears that Indiana residents will turn to offshore casinos to continue playing. These casinos are often unlicensed and operate under the radar, yet demand continues to rise for their services. The situation would have been addressed if HB 1432 had been better supported, and it surely feels like a missed opportunity to capture significant tax revenue and protect consumers at the same time.
As the dust settles on yet another failed bid to legalize online gaming in Indiana, it is time for all parties involved in the situation to take stock. For those who promoted House Bill 1432, this is the time to reconsider their strategies and consider the options available.
For disappointed players, their only options are to switch to a neighboring state where the grass is greener, or risk signing up with a potentially predatory offshore casino site. Neither of which has much appeal, nor does it add to the Indiana tax coffers. Let us hope that those at the head of affairs will eventually find a compromise that will benefit all parties in the future.
