Online Casino Legalization in Indiana Stalled for 2025

Efforts to legalize online casinos in Indiana have effectively hit a roadblock for the year, as Rep. Todd Huston, Speaker of the Indiana House of Representatives, confirmed that discussions surrounding Rep. Ethan Manning’s iGaming bill have reached an impasse. Despite some early momentum, particularly with the bill’s passage through a committee, the path to a full legalization framework for online casinos remains unclear, raising questions about the state’s ability to navigate the complex and often contentious issue of gambling expansion.

A Bill that Could Have Changed Indiana’s Gaming Landscape

Manning’s proposal, House Bill 1432 (HB 1432), sought to regulate online casino games in Indiana, creating a system akin to the framework already in place for online sports wagering. The bill was designed to bring online casinos into the state’s regulated gaming environment, providing new opportunities for revenue while also addressing issues like responsible gambling through a dedicated fund for research and treatment, funded by fines levied on licensees. The bill also aimed to expand the scope of gambling by allowing the Indiana Lottery to sell tickets online and raising the tax rate for sports betting revenue.

While HB 1432 did gain traction in the House Committee on Public Policy and was amended in committee, it appears unlikely to move forward in 2025. Huston, in his comments, acknowledged the complex nature of the proposal, pointing to “all sorts of moving parts” and the challenge of reconciling differing perspectives on the bill’s impact, especially on local communities and the broader gaming landscape in the state.

Complexity and Lack of Consensus

In an interview with Niki Kelly of the Indiana Capital Chronicle, Huston made it clear that there simply wasn’t enough consensus to advance HB 1432. He described the bill as “a complex bill with a lot of different moving parts,” and emphasized the difficulty of finding common ground on its provisions, especially considering the various stakeholders involved. Huston did not delve into the specifics of the opposition, but his remarks underscore the complexities involved in legalizing a new form of gambling—one that affects not just online players but also physical casinos, state revenues, and local communities.

“There’s all sorts of moving parts about how it impacts certain communities, what it does to the overall gaming environment in Indiana,” Huston explained, noting that these concerns made it difficult to find consensus. “Just trying to find something there was some consensus on, felt like it was a pretty tough spot to be.”

While this year’s legislative session appears to have closed the door on iGaming in Indiana, the reasons for this impasse are multifaceted. Beyond the technical complexities of the bill itself, there are lingering issues from past gambling expansion efforts that still seem to cast a shadow over current discussions.

The controversy surrounding Indiana’s last round of gambling expansion, which occurred in 2019, has made gambling a politically sensitive issue in the state. In 2023, former Rep. Sean Eberhart’s conviction on corruption charges related to the 2019 expansion further soured many legislators and the public on the prospect of further gambling expansion. Eberhart’s guilty plea, related to his involvement in manipulating the 2019 expansion to benefit certain gambling interests, still looms large, affecting public perceptions of the integrity of gambling policymaking in the state.

On top of that, fiscal concerns have played a major role in derailing online casino legalization efforts. During an earlier push in 2023, a contentious fiscal note warned that the proposed iGaming legalization could harm the state’s tax revenue from gambling, with concerns about the cannibalization of brick-and-mortar casino businesses. This skepticism over the fiscal impacts of online casinos remains a significant barrier to legalizing the industry.

For these reasons, Manning’s decision to hold off on introducing any iGaming legislation in 2024 was unsurprising. It also suggests that it may take more time to fully address the issues that have stalled the discussion, particularly around fiscal concerns and public trust in the process.

A Glimmer of Hope for 2026

Despite these setbacks, there is hope that progress could be made in the future. One significant indicator of potential future success is the support that HB 1432 garnered from the Indiana Casino Association, a key trade group for the state’s gaming licensees. During the Public Policy Committee’s hearing on the bill, representatives from the association expressed favorable testimony, signaling that a coalition of industry stakeholders may be ready to back similar legislation in the future.

This support is vital, as the Indiana Casino Association wields considerable influence in the state’s gambling discussions. Opposition from the association could prove insurmountable, so its backing for HB 1432 signals that the landscape could be more conducive to iGaming legalization in 2026, should Manning or other lawmakers choose to reintroduce a similar bill.

The passing of time may also help ease some of the lingering concerns tied to past scandals. As the state moves further away from Eberhart’s conviction, it’s possible that legislators and the public will become more open to considering new gambling expansion proposals.

 

Just trying to find something there was some consensus on, felt like it was a pretty tough spot to be.

Looking Ahead

Huston’s comments suggest that while 2025 may not be the year for online casino legalization in Indiana, the issue is not being permanently sidelined. The door remains open for future discussions, and if lawmakers can find ways to address the concerns about gambling’s impact on communities, fiscal issues, and regulatory complexity, online casino legalization could very well be back on the agenda in 2026.

For now, the battle for iGaming in Indiana has been put on hold. However, the ongoing conversations, shifting public opinions, and potential support from industry stakeholders could lay the groundwork for a future breakthrough in the state’s gaming policy. As has often been the case in Indiana’s history with gambling, patience and persistence may eventually lead to progress—just not yet.