iGaming Legislation off the 2024 Legislative Menu in Indiana

Article by : Erik Gibbs Nov 28, 2023

• 
• 

The recent conviction of former Indiana state legislator Sean Eberhart on bribery charges related to a 2019 gaming bill has resulted in a temporary halt on any discussions of bills concerning online casino gaming in Indiana for the year 2024.

Eberhart, who agreed to plead guilty to a federal charge of conspiracy to commit honest services fraud, was accused of voting in favor of favorable terms for Spectacle Gaming in exchange for a lucrative position with the company.

This development has prompted state legislators to refrain from introducing any gaming-related legislation during the 2024 session.

The decision has impacted the gaming industry’s hopes of expanding online casino gaming in Indiana, a state that has been considered a prime candidate for such expansion.

The fallout from Eberhart’s case has raised concerns about the integrity of the statehouse, making it challenging to pursue gaming policy changes.

Despite previous attempts to introduce internet casino gaming bills in the last three years, none of them advanced beyond committee discussions.

This year’s proposed bill, led by Rep. Ethan Manning, faced challenges, including a fiscal analysis estimating the potential displacement of “up to 30% of existing gaming revenues” due to iGaming.

Indiana stands as a well-established gaming market, having been an early adopter of legalized sports wagering in 2019 following the PASPA ruling.

The state has witnessed substantial success, with legal sportsbooks handling over $13.8 billion in wagers since inception, with nearly 90% of this activity occurring online. Operator revenue amounts to just under $1.2 billion, contributing over $113.8 million in state taxes.

Indiana expanded its offerings with the opening of Hard Rock Northern Indiana in May 2021, bringing the state’s total to 10 casinos and two racinos. Churchill Downs is set to add an 11th venue in Vigo County in early 2024 with a $250 million casino.

Monthly casino revenue in Indiana has consistently surpassed $200 million throughout the first ten months of 2023.

Notably, the three northwest Indiana venues, all within an hour’s drive from Chicago, have effectively attracted business from neighboring Illinois, even with the recent opening of a casino in downtown Chicago.

The success of internet casino gaming in neighboring Michigan, generating close to $1.6 billion in operator revenue for 2023, with $286.9 million in state taxes, has further emphasized the potential for Indiana to adopt online casino gaming.

Currently, six states offer internet casino gaming, with Rhode Island expected to join their ranks early next year.

The legal developments involving former Indiana Rep. Sean Eberhart, Spectacle Gaming and Vigo County have left a notable impact on the state’s gambling landscape. Eberhart, accused of conspiring with Spectacle Gaming officials, played a role in the relocation of two casino licenses to Gary and Vigo County.

The federal charges outlined an agreement wherein Eberhart received a promise of future employment with Spectacle Gaming at an annual salary of $350,000.

The bill related to Spectacle’s license relocation also included a transfer fee, and Eberhart, advocating for Spectacle, introduced language reducing the transfer fees from $100 million to $20 million.

However, challenges led to changes in ownership, with Churchill Downs ultimately securing the license for Vigo County in November 2021 and initiating construction in June 2022.