On Wednesday, May 8, Indiana Governor Eric Holcomb officially signed a gambling expansion bill which makes sports betting legal and made Indiana the latest US state to legalize sports betting.
Following the enactment of the bill into law, betting on both pro leagues and college-level tournaments would be legal in the state from September 1, 2019.
The legislation allows the state’s licensed gaming facilities to offer in-person and mobile sports betting to players over the age of 21, either independently or through a vendor, with the Indiana Gaming Commission accepting sports wagering certificate applications from July 1st.
Operator applicants and vendors are required to pay an initial fee of $100,000 and an annual administrative fee of $50,000 for certification and will subject to a 9.5 percent tax on adjusted gross receipts from sports betting. The state’s Addiction Services Fund will receive 3.33 percent of the tax revenue.
The legislation also expands gambling within the state by allowing table games at racinos beginning January 1, 2020, and offers the possibility of establishing a new land-based casino in Vigo County. The graduated wagering tax on gambling games at racinos and riverboats will also be lowered.
Signing the bill into law, Gov. Holcomb explained, “Gaming is a highly regulated industry that once had little competition, but now does from surrounding states and new technology. By modernizing our laws, this legislation will spur positive economic growth for our state and for an industry that employs over 11,000 Hoosiers. Additionally, it will bring in new revenue and create hundreds of new jobs—both permanent and in construction.”
It all started in March when bill drafted by senators Mark Messmer and Jon Ford was introduced to the Senate, and the Senate approved the bill by a 38-11 vote.
The bill also met opposition from Speaker, Brian Bosma, who had been vocal about his concerns. According to Bosma, the new bill would be nothing but a move to expand gambling activities in the state.
After that in mid-April, the bill was brought to the House. Senate Bill 552 was approved by the Indiana General Assembly with 78-15 votes in favor of the bill and the state moved a step closer to legalizing sports betting.
Indiana expects to generate sports wagering fees of $1.6m in fiscal year 2020 alongside sports wagering tax revenue of $8.6m, with the tax revenue predicted to rise to $11.5m by the fiscal year 2022.
