Crypto iGaming Hopes Dashed as Indiana Fails to Advance Online Gambling Bill

After comments from Rep. Todd Huston, the Speaker of the Indiana House of Representatives, casino expansion in Indiana has effectively died.

Indiana was one of the few states that had hope for broader legalization, but hopes of online casino legalization and, more broadly, crypto iGaming have been dashed.

The main bill under consideration in Indiana is Rep. Ethan Manning’s HB 1432. Reps Cory Criswell, Justin Moed, and Steve Bartels co-author the bill.

The Speaker of the House told the Indiana Capital Chronicle that the bill was “complex,” with a lot of “different moving parts.” Despite the bill passing through the House Public Policy Committee with ease, it did not get heard in the Ways and Means Committee, its latest obstacle.

He added: “I think, you know, just trying to find something there was some consensus on, felt like it was a pretty tough spot to be.”

Legislators often engage in the same debate topics when discussing gaming expansion across the United States. These include cannibalization of brick-and-mortar casino revenue and damage to communities. Indiana is no different, with Huston saying: “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.”

Key Provisions of Indiana’s Failed iGaming Bill

HB 1432’s initial proposals would have legalized online gaming and digital lottery products and adjusted the state’s tax on sports betting. Key proposals were as follows:

• Each brick-and-mortar casino and racetrack in Indiana could apply for an online gaming license for $500,000 and have up to three online skins.
• Indiana iGaming would be taxed at 26 percent of adjusted gross revenue. In July 2026, this would shift to a tiered structure, ranging from 22 to 30 percent.
• The Indiana Lottery Gaming Commission would be authorized to sell eInstant games online.
• The Bill would have created the Indiana Responsible Gambling and Problem Gambling Services Program, which would have been funded by fines levied on casino properties. This would have seen a pivot from ‘awareness’ of gambling-related harms to treatment and research.
• The Pokagon Band of Potawatomi Indians and its casino in South Bend would be able to obtain a state license.

Should the expansion have gone ahead, Rep. Manning estimated that digital lottery, casino games, and the increase in online sports betting tax rate to 20 percent from 9.5 percent would create an extra $300 million in tax revenue for Indiana.

Despite iGaming Setback, Indiana Remains a Hotspot for Crypto Investment

Despite online crypto casinos looking unlikely for at least another year, Indiana remains an attractive place for crypto-focused businesses to set up. In 2024, lawmakers assured mega-corporations of “ample amounts” of low-cost power and water to attract data centers and crypto-mining operations to the State.

Amazon confirmed an $11 million investment in the state, and companies such as Google, Microsoft, and AboutBit have all invested in or plan to invest in the state. Despite the legislative reticence to expand online gaming, Indiana is well-positioned to capitalize when the opportunity arises.