A report commissioned by Indiana’s Gaming Commission has estimated that in its first year, online casino gaming could bring in revenue of $469m.
The projection came as part of a report commissioned by the body, in conjunction with Spectrum Group. It was released today (September 28).
It examined the current legal online gaming market in the US, with focus on New Jersey, Michigan and Pennsylvania in particular, along with an examination of the potential online gaming market in Indiana.
Currently, sports betting is the only type of online gambling allowed in Indiana. It was signed into law in 2019.
However, the Indiana state government commissioned Spectrum Gaming to provide a report on the impact of online casino in the state.
The report projected that revenue could reach $469m in the first year after launch. In its third year of operation, revenue could reach $830m.
It also calculated projected tax revenue. Over the projected three-year timeline, at the highest tax rate estimated (45%), online gaming in Indiana could generate $883m in tax.
The report noted that a 15% tax rate was often seen as a “sweet spot”, but said that Pennsylvania could become the most lucrative online casino state despite a 54% tax on slots.
As well as projections, the report analyzed how Indiana might introduce igaming.
Josh Pearl, director of new market operations for Penn Interactive, was cited as saying that since there are employees licensed by Indiana to operate and manage digital sports betting sites, Indiana should allow them to work in different areas of igaming – meaning, outside sports betting.
“Obviously we have a lot of folks that are already licensed in Indiana for sports; our ask would be that they can use those same occupational licenses for online casino,” said Pearl.
“Certainly, staff members that may be working on the marketing teams or frontline customer service that now would be helping consumers with what is just now a sports and online casino account, not really that their roles are changing.”
Ed Andrewes, CEO of Resorts Digital Gaming, said that Indiana’s biggest hurdle for igaming will be having all online games approved.
“That is probably the biggest additional thing because, to be honest, in terms of approving players and responsible gaming … there are slight differences, but the basis is the same for sports book as well as casino,” he said.
Another consideration in the report was how Indiana might tackle problem gambling.
“The authorization of igaming would mean that, potentially, every Indiana adult would have a full suite of casinos games in his or her pocket, via one or more gambling apps on a mobile phone,” the report read.
It was posed that Indiana could look towards other states for inspiration on how to formulate responsible gambling measures.
The report outlines Michigan’s safer gambling framework specifically, which composes of self-exclusion measures, deposit limits, age verification and geolocation technology.