A report from the Indiana Gaming Commission released last week suggests that the legalization of igaming in Indiana could yield significantly higher tax revenues than previously estimated.
The analysis, conducted by nonpartisan consultancy firm Spectrum Gaming Group, indicates that the state could potentially earn between $413 million and $929 million in tax revenue over the first three years after legalization. This estimate is roughly a 5 percent increase compared to the figures projected in a 2022 report, which forecasted tax revenues between $392 million and $883 million for the same period.
Findings highlighted the potential job creation benefits of live-dealer gaming, stating that it could add hundreds of jobs, especially if studios are required to be located in Indiana.
The report explores three models for Indiana igaming: an open model available to all gaming companies, a closed model limited to state casinos and a hybrid model similar to Indiana’s approach to digital sports betting, where third-party gaming companies can operate igaming sites and facilities through licensing agreements with casinos.
Despite the report’s findings, no changes in Indiana’s gambling legislation are expected in the near future, particularly in light of recent scandals involving former lawmakers and their connections to the casino industry. These controversies have led Republican legislative leaders to declare a moratorium on efforts to expand gambling.
IGC Deputy Director Jenny Reske spoke about igaming expansion at a December IGC meeting, saying, “we’ll continue to develop expertise on this. We’re regulatory professionals [and] we understand that we sometimes need to rise to the challenge of new legislation. So we’ll continue to focus on learning, on being up to the task, if the legislation does pass.”
