Indiana’s online casino bill falters
Concerns surrounding cannibalization and impact on retail lottery ticket sales kills House Bill 1432 in the state, while hopes in Hawaii, Minnesota, and North Dakata also dashed
Indiana became one of many states last week which failed in its bid to legalize online casino in 2025, after House Bill 1432 stalled in the Ways and Means Committee.
HB1432 would have introduced icasino to Indiana from September 1, as well as online lottery ticket sales.
After passing through the House Public Policy Committee following a vote of 9-2-2 at the end of January, a negative fiscal note from the Indiana Legislative Services Agency halted any further progress.
There were also concerns of cannibalization and in-person lottery sales from politicians in the state.
Speaking to the Indiana Capital Chronicle, house speaker Todd Huston said the bill was “complex to work through” with multiple moving parts impacting different communities.
Huston noted: “There’s all sorts of moving parts about how it impacts certain communities, what it does to the overall gaming environment in Indiana. I think all those things just make it complex to work through.”
HB1432 would have also increased the online sports betting tax rate from 9.5% to 20%, with retail sports betting remaining 9.5%.
Licensed online casino operators would have faced an initial gross gaming revenue (GGR) tax rate of 26% up until July 2026.
The tax rate would have then become tiered, based on operators’ annual GGR, from 22% to 30%.
Elsewhere, Hawaii’s icasino bill and Minnesota’s sports betting bill failed to get through the Hawaii State Legislature and North Star State Senate State and Local Government Committee, respectively.
Hawaii failed to progress Senate Bill 893 due to concerns raised regarding increased crime potential and financial instability for residents suspected to be suffering from gambling-related harms.
However, three other bills across the House and the Senate in the island state remain live at the time of writing, having been sent to various committees.
While in Minnesota, SF 757 resulted in a 6-6 vote, even after Senator Matt Klein amended the bill.
North Dakota’s online sports betting hopes were also denied after the House voted down a proposal shortly after it was introduced.
One state that could still legalize online casino is New Hampshire, after Senator Tim Lang’s SB 168 amended where the tax revenue would be allocated.