Indiana is positioning itself as a potential leader in the online gaming industry with the introduction of House Bill 1432 (HB 1432), presented by Representative Ethan Manning. This initiative proposes the legalization of online casinos, digital lottery sales, and pull tabs, paving the way for new opportunities for casino operators and players alike.
The bill aims to grant licenses to riverboat casino operators, a tradition deeply rooted in Indiana. Iconic names like Horseshoe Hammond and Majestic Star Casino symbolize the creativity of an industry that, since the 1990s, has adapted to legal regulations to offer unique gaming experiences.
The initiative includes issuing up to three virtual platform licenses per operator, with an initial cost of $500,000 per skin and an annual renewal fee of $50,000. It also establishes a tax structure starting at 26% in the first year, scaling between 22% and 30% based on revenue. This model builds on the success of sports betting, which, since its legalization in 2019, has generated over $1.8 billion in revenue and $167.6 million in state taxes.
Indiana already hosts major players such as Caesars, Hard Rock, and Bally’s, which successfully operate land-based casinos. This expertise could translate into a strong digital market if the bill manages to overcome barriers raised after the 2023 scandal involving former Representative Sean Eberhart.
'An act of corruption'
Eberhart was accused of accepting a future job offer in 2019 from an executive with Spectacle Entertainment, a gaming company that was seeking permission to move two lakefront casino licenses in Gary to more lucrative inland locations.
In exchange for the promise of future employment, Eberhart advocated for legislation beneficial to Spectacle, including an $80 million licensing fee reduction and millions of dollars in tax breaks, according to the charging information in the case.
Bradley Shepard, senior litigation counsel for the U.S. Attorney's Office, conceded on Wednesday that the legislation might have passed without Eberhart's vote, but argued it wouldn't have passed in a form so beneficial to Spectacle and detrimental to taxpayers.
With a history defined by riverboat casinos and a promising future in the online market, Indiana has the potential to lead a revolution in the gaming industry. The combination of experience, innovation, and smart regulation could position the state as a benchmark in the United States.
