While sports betting continues to expand throughout the U.S. at a solid pace, iGaming legislation has been met with far more reluctance. Still, only seven states permit online casino play, while a handful of others are considering or are expected to consider legislation this year.
In the case of Indiana, lawmakers have already opted to squash a proposal, effectively tabling efforts until 2026. This follows similar measures by Virginia and Wyoming.
House Bill 1432, authored by Indiana Republican Rep. Ethan Manning, passed easily out of the House Public Policy Committee last month before it stalled in the Ways and Means Committee.
While estimates say legalized iGaming could create an additional revenue stream of $300 million annually in the Hoosier State, some experts aren't surprised by the lack of progress on a bill.
"My take on Indiana is like mine on a lot of other states. It's going to be really hard to push through iGaming," John Holden, an associate professor in the Department of Business Law and Ethics at Indiana University's Kelley School of Business, told RG. "There's not this swell of support like there's been with sports betting the last few years. It's not a new product rolling into the market.
"iGaming is seen as a competitor to the brick-and-mortar and tribal gaming industry."
Sports betting has seen enormous growth in Indiana since its 2019 launch online. Approximately $5.2 billion was wagered on sports last year alone, with gross revenue surpassing $484.9 million.
It's now legally operative in some form in 38 states plus Washington, D.C., with Missouri set to join the ranks this summer. Despite tremendous opportunities for revenue growth, there remain concerns about an influx of problem gambling.
When it comes to legalized iGaming, some states fear that the potential risks may even outweigh the rewards.
"Across the country, the commercial brick-and-mortar and tribal gaming industry aren't huge fans of [legalizing iGaming]," Holden said. "On top of that, there hasn't been great press on iGaming recently.
"It's really hard to sell iGaming, even with [additional] tax revenue coming when you've got these things out there."
Proponents in Indiana have repeatedly gained little traction. Among the issues was a corruption trial in which a former state lawmaker pleaded guilty to conspiracy to commit honest services fraud to benefit a local casino company. Former Republican Rep. Sean Eberhart is currently serving a sentence of one year and a day in federal prison.
Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia remain the only states with legal iGaming. Notably, this doesn't include Nevada's poker-only market.
Holden — who has written several books on the business and legalization of sports betting — doesn’t anticipate adding Indiana to that list anytime soon.
"I'm never surprised when bills are introduced and I'm never surprised when they don't pass," he said. "iGaming legislation is going to be tough. The places where it was going to be easy, it's passed."
Think of it this way.
"A lot of times when legislation gets introduced, it's like Opening Day of the baseball season. Any team can win the pennant on Opening Day, but probably not," he said. "I think a lot of online gaming is like that."
Doug is a seasoned sports writer/editor with bylines for the New York Times, Associated Press and CBS Sports. He also has extensive experience in the betting industry, including work for Point Spreads. Prior to that, he covered UConn women's basketball and football for Hearst Connecticut Media.
