Indiana iGaming mission supported in report; could generate $2bn in revenues

Article by : Charles Perrin Jan 15, 2024

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Indiana could haul in roughly $2 billion in revenues were it to expand the scope of iGaming to accommodate online casinos, according to a prominent report.

Spectrum Gaming Group, a respected non-partisan consultancy specializing in the economics, regulation, and policy of legalized gambling worldwide, was commissioned for a second study by the Indiana Gaming Commission.

A similar study was conducted in 2022, but the fresh findings consolidate the notion that Indiana online casinos and retail casinos can successfully co-exist.

Fears have previously abounded that online casinos would cannibalize the retail sphere, and the concept of cannibalization is a recent phenomenon.

However, the new study shows that online operators won’t impede upon or slow down the progress made by their land-based counterparts.

Spectrum used its 114-page report to provide a comprehensive overview of iGaming to analyze the state of play in other states as a point of comparison, including Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia, and the overall picture was ambiguous.

Financial projections produced by Spectrum indicate that Indiana could rake in $2 billion in revenues within the first three years if given the green light.

In terms of tax rate scenarios, there were three illustrative bands reflected for Indiana, with the highest tax rate imposed at 45%, and this would generate over $1 billion in receipts in the first three years.

And Spectrum has now stipulated that Indiana online casinos are well equipped to cope in a competitive environment.

The report read: “Based on our analysis of iGaming in other states, iGaming does not appear to have a negative effect on other forms of gaming.

“With a mature casino industry and digital sports betting in place, Indiana is well positioned to integrate iGaming with its existing responsible-gaming measures, although additional funding should be dedicated for treatment services, according to the executive director of the Indiana Council on Problem Gambling.”

So far, Indiana has stalled in its mission to expand iGaming, and in 2023, a proposed online gambling bill failed to gain traction in the Legislature for the third year running.

Of course, if it were up to Spectrum, Indiana would have a fully legalized and functioning online casino landscape today. Now, they just need to convince the powers that be to move the discussion forward.