Indiana House Speaker Todd Huston confirmed last week that the effort to legalize online casinos and lottery games has hit a dead end for 2025.
Rep. Ethan Manning’s House Bill 1432 initially passed the House Public Policy Committee with little pushback. However, it failed to get a hearing in the Ways and Means Committee, which would have scrutinized the proposal’s financial impacts.
The legislation would have permitted licensed Indiana casinos to offer online casino games alongside the Hoosier Lottery. Supporters argue that since Hoosiers are already gambling online, it only makes sense to better protect state residents by regulating and taxing the industry.
As the Indiana Capital Chronicle (ICC) reported on Thursday, Huston called the bill complex legislation with many “different moving parts.”
Just trying to find something there was some consensus on, felt like it was a pretty tough spot.
Potential impacts on retail casinos a significant hurdle
Had HB 1432 passed, Rep. Manning estimated online casinos, lottery, and sports betting tax hikes could have added over $300 million to state revenues annually.
However, Huston said despite Manning’s stewardship, the bill’s potential impact on Indiana’s existing gambling industry made finding consensus a challenge.
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.
Among the legislation’s detractors were those concerned that online options would eat into existing in-person gaming or lottery sales. Notably, according to the ICC, at least one casino opposed the bill’s intent.
The Hoosier Lottery, however, supported online lottery legalization and said online options are needed to grow Indiana’s revenue and player base. Had HB 1432 passed, Indiana would have joined 14 other states, including Illinois, Michigan, and Pennsylvania, in offering online lottery games.
In addition to the predicted revenue boost, HB 1432 established the Indiana Responsible Gaming and Problem Gambling Services Program to promote responsible gambling and combat problem gambling. In the past, Indiana’s problem gaming efforts consisted mainly of awareness campaigns. As proposed, the new program included funding for treatment and research.
Funding for the program would have come from tax revenues and additional operator payments.
Online casino legislation a hard sell for many states
HB 1432 was Indiana’s first attempt to legalize online casinos since a political scandal sidelined its previous effort.
In 2023, former Indiana state representative Sean Eberhart admitted to accepting a bribe to back a 2019 gambling expansion effort. While Eberhart pled guilty to federal corruption charges, the backlash prompted Indiana House and Senate leaders to bypass legalization efforts in 2024.
Now, the 2025 effort has suffered a similar fate.
At the same time, the few opportunities for US online casino expansion are overwhelmingly at risk. Many introduced bills are long shots, with some encountering seemingly insurmountable headwinds early.
In addition to Indiana, Virginia’s 2025 efforts ended when SB827 sponsor Sen. Mamie Locke elected to press pause until potential impacts received further study. Also, in early February, Wyoming’s online casino push stalled in committee after opposition from tribes and problem gambling organizations. It is unlikely to emerge at this point unless committee members experience a sudden shift in viewpoint.
While still in progress, legalizing online casinos in Illinois, Maryland, Massachusetts, and New York is an upward battle due to issues including union opposition and cannibalization concerns.
In New York, Gov. Kathy Hochul and land-based casino unions are obstacles. Hochul has indicated she’s unwilling to consider online casinos until the state awards its downstate retail casino licenses. Meanwhile, workers’ unions believe online casinos would hurt casino employment. So far, the bill’s sponsor and longtime online casino advocate, Sen. Joseph Addabbo, has had no success negotiating a compromise.
New Hampshire bill may be online casinos’ best chance
As it stands, New Hampshire has the best chance of passing Sen. Timothy Lang’s amended online casino legislation, though success is far from certain.
During its Feb. 12 meeting, the state’s Senate Ways and Means Committee recommended the amended bill “ought to pass” after a 3-2 vote. Before the committee added the amendment, there was confusion surrounding SB 168’s impact on charitable funding.
The amended version of Sen. Lang’s bill clarifies the legislation’s charitable revenue-sharing requirements.
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