No iGaming, some charity gaming, some tweaks, no tax hikes
Following what was effectively a three-year interregnum in which gaming legislation was leges non grata thanks to an ongoing set of federal investigations which imprisoned three former legislators on gaming industry-related charges, the moratorium was lifted in 2025, and we saw significant activity on the gaming front.
What was most notable, however, was what failed to win approval . . . and what solons chose not to address while they were casting about to balance the budget bill.
Online gaming failed to advance at the author’s discretion after a positive reception in the House Committee on Public Policy, a panel chaired by the bill’s author, Rep. Ethan Manning (R) of Logansport. The Manning measure also would have allowed online sales by the Hoosier Lottery. The legislation was recommitted to the House Committee on Ways and Means, but never heard there amidst concerns from the casino side of the debate over the potential strength of distributed gaming advocates.
Your favorite gaming newsletter remains surprised, however, that the lottery authorization language did not arise again in the budget under a revenue-raising rationale. While there has been longstanding antipathy among Senate leadership toward online gaming, this seemed to be a reasonable compromise that would not have benefited any gaming operators (save IGT Indiana, which has long quietly pitched for the product).
There were also no last-minute gaming tax hikes slipped into the budget despite the need for lawmakers to find a combination of some $2.4 billion in budget cuts and revenue generators to cope with a steep revenue collection shortfall forecasted on April 16, just eight days before adjournment sine die.
There was no increase in the riverboat wagering tax or supplementary admissions tax as had been advocated by Senate Democrats in Second Reading amendments to the budget, nor was there any move to slash or eliminate the “free play” deduction or limit its transfer (sale) by one cash-starved casino that didn’t need the tax break to another, more prosperous property that could benefit.
There wasn’t even a proposal to bring our sports wagering tax more in line with the higher rates charged by our neighbors (or at least hike the tax on mobile/online revenues).
While nothing happened on the tax front this session, there may be a legislative undercurrent to which casinos should pay attention: Casinos were saved from both tax hikes and more serious competition from either more than a modest amount of e-pulltabs or a huge influx of devices in every nook and cranny of the state under a distributed gaming framework, so if they come asking for iGaming going forward, they should be prepared to make some serious sacrifices under the longstanding understanding of the symbiotic relationship between the casinos and the State. That means that when the State takes something away, it also gives the industry something in return. Watch how this transpires, likely in the 2026 session, unless there are some serious budget holes to fill in the interim next year.
What did receive the legislative seal of approval this session was a long-sought first step toward slot machines at facilities operated by veterans service organizations (electronic pull-tabs), as well as clarification that a qualified organization offering charity gaming could use their net proceeds for any lawful activity. Such a broad use of proceeds would have been anathema to lawmakers and regulators even a few years ago.
Most of the other permissive changes are largely minor, but will benefit many operators.
Some legislation also cracks down on certain practices, and there were some important changes in the charity gaming world that will put the squeeze on a few questionable operators who have seemingly transformed their charity gaming operations into full-fledged professional casinos – in some cases via loopholes or limited resources available for enforcement, and in others simply by flouting the law (particularly in Fort Wayne, as we heard during assorted committee hearings).
Here’s your final status report on significant gaming measures after the legislative session.
– SB 209, legislation authored by Sen. Kyle Walker (R) of Indianapolis that would allow limited use of electronic pull tab games for certain fraternal and veteran service organizations, was signed into law by the Governor on April 16 as Public Law 74.
– SB 108, legislation authored by Sen. Alting and sought by the Indiana Gaming Commission that would limit a facility or location from conducting a bingo event or a casino game night on more than three calendar days per calendar week; require certain regular audits; and ease rules to permit a qualified organization to use the net proceeds from an allowable activity for any lawful purpose and to conduct an electronic raffle, was returned to the Senate with House amendments and earned a strong concurrence vote, passing 36-1 April 16 after a brief soliloquy from Sen. Alting about what he thought had been his crusade more than a decade earlier to allow capital expenditures from gaming dollars that this measure will now make clear are legal. Sen. Mike Young (R) of Indianapolis was the sole nay vote on the bill. The bill was signed by the Governor on Wednesday.
– SB 43, the vehicle bill converted into the measure authored by Sen. Andy Zay (R) of Huntington calling for a study to be submitted to the State Budget Committee by November 1 (contracted for by the Indiana Gaming Commission; IGC has already received responses from prospective vendors) of the best two sites in Indiana for relocation of a casino – the Rising Star Casino Resort – or a new license entirely, was returned to the Senate with House amendments, and was awaiting a decision on concurrence or dissent when we last published. After waiting three weeks from the time it was returned to the Senate by the House with amendments, Sen. Zay filed a motion to concur on April 22, and the next day the full Senate concurred with the House amendments on 37-11 vote. The bill is waiting for a decision by the Governor as of Thursday.
– HB 1053, alcohol and gaming matters legislation authored by House Committee on Public Policy Chair Ethan Manning (R) of Logansport to effectuate certain technical provisions sought by the Indiana Horse Racing Commission, was returned to the House with Senate amendments (focused on lottery courier service), and the House dissented on the changes April 14. On Wednesday morning, April 23, three of the conferees met, and in less than one minute agreed to a change that would insert language from SB 94 authored by Senate Committee on Public Policy Chair Ron Alting (R) of Lafayette (which provides that the State Lottery Commission of Indiana shall not operate or authorize the operation of a lottery courier service and would requires the commission to adopt rules regarding the bulk purchase of lottery products) into HB 1053. The bill was then sent to the House for a vote on the conference report. The House vote was 76-10. The CCR was then adopted by the Senate on April 22 on a 42-7 vote.
– HB 1275 is the Alcohol and Tobacco Commission’s “agency bill,” authored by Rep. Manning, that, among other non-gaming matters, would amend Type II gambling games and attendant prize limits to include sports-themed gaming related to professional or National Collegiate Athletic Association Division I sporting events. The Senate passed the measure without any debate on Tuesday by a 39-10 vote, and the amended bill returned to the House for a concurrence decision. On April 17, the House concurred with Senate amendments; in an 86 – 3 vote. The bill is on the Governor’s desk awaiting signature as of Thursday.
– HB 1490, the equine dentistry bill authored by Rep. Beau Baird (R) of Greencastle, would allow the Indiana Horse Racing Commission to license individuals with certain training and references to float teeth – the practice of filing down a horse’s teeth — at the pari-mutuel horse racing tracks in Shelbyville and Anderson. The House unanimously concurred with Senate amendments, and the Governor’s signature was affixed to the measure on April 16.
– HB 1448, the measure authored by Rep. Hal Slager (R) of Merrillville aimed at trying to make the City of Michigan City and the City of East Chicago whole and not unduly penalize the City of Gary for a state error (“an unfortunate slip-up by the State” as Rep. Slager portrayed it to colleagues on the House floor Wednesday) that mistakenly overpaid Gary $12.2 million in supplemental payments of riverboat revenue over the past three years, was amended in the Senate, and the concurrence motion was adopted 76-0 on April 16 as it waits for gubernatorial approval, which was still pending as of Thursday.
– HB 1073, legislation authored by Rep. Craig Haggard (R) of Mooresville, and sponsored by Sen. Scott Baldwin (R) of Noblesville, was concurred on by the House Wednesday morning, April 21 by an 83-2 vote and was pending the Governor’s signature as of Thursday. The measure would require the Indiana Gaming Commission to adopt rules to regulate the conduct of mixed martial arts, martial arts, professional wrestling, boxing and bare-knuckle fighting, and sparring. as introduced, the bill would have authorized – but not mandated – IGC action. The measure incorporates by reference the most recent version of any of the unified rules adopted by the Association of Boxing Commissions and Combative Sports, and provides that the unified rules apply only to the regulation of certain conduct.