Indiana’s prospective igaming bill clears its first hurdle
Ethan Manning’s HB 1432, which would also increase the tax rate for online sports betting operators, is now with House Ways and Means Committee following an emphatic backing
Indiana has taken the first step to legalized igaming after the House of Representatives Public Policy Committee approved House Bill 1432 by a vote of 9-2-2.
The legislation was heard by the committee yesterday, January 28, with several amendments having been made to the proposal.
The headline change saw committee members back an increase in the Hoosier State’s online sports betting tax rate from 9.5% to 20%.
However, retail sports betting tax will remain at 9.5%, should the bill come into effect.
Following its approval, HB 1432 has been assigned to the House Ways and Means Committee.
If signed into law, operators will be permitted to launch online casino operations from September 1, 2025.
Introduced by Representative Ethan Manning, who chairs the policy committee, HB 1432 details how the Indiana Gaming Commission will regulate the state’s igaming sector, while the Indiana Lottery Commission will oversee online lottery games, which would also be legalized if the bill is approved.
Licensed operators would face an initial GGR tax rate of 26% up until July 2026, after which the tax rate becomes tiered, based on the annual GGR, from 22% to 30%.
The firms posting revenue of more than $12m per year would be taxed at the highest rate of 30%.
Under the terms of HB 1432, those eligible for an igaming license include a licensed owner of a riverboat, a riverboat operator based in a historic hotel district, and a permit holder conducting gambling games at the permit holder’s racetrack.
Each igaming license would cost the operator $500,000, before an annual renewal fee of $50,000.
Manning told the committee that those based in Indiana are already participating in unregulated igaming wagering via illegal operators, costing the state much-needed tax dollars.
“This is happening already in Indiana. Let’s authorize it, regulate it, and let’s make it appropriate. We see huge potential for tax revenue as well,” Manning explained.
One of the two ‘no’ votes regarding the bill came from Representative Matt Lehman, who expressed his concerns on how legalized igaming could increase the likelihood of underage state residents accessing gambling services.
Indiana is one of several US states that have introduced igaming bills at the start of the 2025 legislative session.
New York, Wyoming, New Hampshire, Hawaii, and Massachusetts all have live bills. Virginia pulled its efforts and will try again in 2026.
Just seven US states offer online casino, compared to 39 states plus DC with at least one form of sports betting.