Indiana iGaming Bill Advances Following First House Committee Approval

A bill that would legalize online casino gaming in Indiana took a step forward after passing its first hurdle in the House. The legislation, known as House Bill 1432, cleared the House Public Policy Committee with a 9-2 vote, bringing the state closer to launching an official iGaming market. If the bill moves forward, Hoosiers could have access to legal online lottery and casino games as early as September 2025.

Key goals of the bill

• Expand Indiana’s gaming industry

• Increase state revenue (potentially more than $300 million annually)

• Adjust tax structures for digital casino games and sports betting

Supporters argue the bill will:

• Provide consumer protections

• Generate tax revenue currently lost to illegal operators

• Address misleading advertising from unregulated platforms

Industry voices:

• John Pappas (iDevelopment and Economic Association): some illegal operators misuse the Indiana state seal.

• Brandt Iden (Fanatics): unregulated gambling lacks oversight, consumer protections, and tax contributions.

Concerns about problem gambling

• Critics fear legalization will raise addiction rates, especially among vulnerable groups.

• Brianne Doura-Schawohl (addiction expert): online gambling is more addictive due to accessibility and anonymity.

• Risks include financial ruin and suicide.

Responsible gambling provisions

• Annual operator fees: $250,000 per licensee to support treatment and research programs

• Additional fees if funds run low, capped at $2 million annually per operator

• Mental health groups (e.g., Mental Health America of Indiana) support the bill if treatment resources are sufficient

Tax structure debate

• Initial flat tax: 26%

• Transition to graduated scale: 22%–30% based on revenue

• Some operators prefer a flat rate; Manning argues the tiered system supports smaller businesses

Lottery expansion

• Hoosier Lottery backs online lottery sales

• Officials say it will increase revenue and attract new players without harming traditional sales

• Would align Indiana with Michigan, Kentucky, and Illinois

Political support and opposition

• Bipartisan backing: Republicans and Democrats voted in favor

• Dissent: Rep. Matt Lehman and Rep. Peggy Mayfield cite concerns about addiction safeguards

• Lehman suggested measures like allowing spouses to block partners from gambling

Conclusion
House Bill 1432 signals a major shift in Indiana’s gaming landscape, balancing economic opportunities with social concerns. While bipartisan support gives the measure momentum, the final outcome will hinge on lawmakers’ ability to address addiction risks and ensure strong consumer protections.