Indiana would fully legalize online gambling — and online lottery — under legislation approved by a House committee Tuesday.
The state’s casinos are split on whether to support the online gaming expansion.
HB 1432 would allow Indiana’s existing casinos and racinos to offer casino-style games online and on mobile devices. Casino Association of Indiana President Matt Bell said online gaming is important to the industry’s ability to grow its market.
“This is about an opportunity to meet players that we wouldn’t normally meet within the walls of our casinos,” Bell said.
But Oliver Barie, who represents Terre Haute casino owner Churchill Downs, said online gaming will cannibalize brick-and-mortar casinos that support local workers and businesses.
“Instead, it will primarily serve to benefit our state’s tax coffers and the out-of-state operators who will realize larger profit margins,” Barie said.
A legislative analysis of the bill estimates it could bring in as much as $221 million in state revenues by the second full year of online gaming.
The measure also includes increased revenues for both communities with casinos and non-host communities shared from gaming taxes.
There’s less of a fight from retailers over allowing the Hoosier Lottery to offer online games. That’s in part because the bill would send money to retailers that help promote online lottery.
Hoosier Lottery spokesperson Jared Bond said other states’ experiences with online lottery show it doesn’t hurt brick-and-mortar retailers.
“This new delivery channel actually attracts new players, increases awareness of lottery products and increases brick-and-mortar sales, as well,” Bond said.
The bill would also create a new problem gambling program — and put significant money behind it.
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Indiana’s existing problem gambling efforts have largely been focused on awareness. Stephanie Anderson with Mental Health America of Indiana said the new program would provide comprehensive and necessary resources.
“Approaches that include prevention initiatives; clinical treatment and recovery resources such as recovery coaches in the state; a connection to treating co-occurring health and behavioral health conditions; and access to non-clinical services like financial counseling,” Anderson said.
But Brianne Doura-Schawohl said those resources are already needed, before any gaming expansion. Doura-Schawohl is a longtime problem gambling expert. She said people struggling with gambling addiction are 15 times more likely to die by suicide than the general population.
And Doura-Schawohl said online gaming will make things worse.
“The products that you’re discussing in this bill are thought by researchers to be ten times more addictive and dangerous than other gambling products.”
The bill requires each of the state’s 13 casinos to put $250,000 a year into the new problem gambling fund, plus $500,000 a year from the state lottery for a total of $3.7 million annually.
It also allows the state to collect up to $2 million total per year from each casino, if the fund needs more money.
