Indiana Governor Eric Holcomb recently signed H 1015, authorizing sports betting, among other provisions. Indiana became the second state this year, after Montana, to pass sports betting legislation, and became the 10th state to allow it. The legislature passed the bill on April 25.
In his signing statement, Holcomb wrote, “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. I will direct the Indiana Gaming Commission to monitor for potential effects of this bill so that we can make necessary changes in future legislative sessions.”
American Gaming Association Senior Vice President of Public Affairs Sara Slane stated, “Indiana is one step closer to reaping the benefits of legal, regulated sports betting with a framework founded on a sensible tax rate and free from unnecessary league fees or carve outs. The bill enables conveniences like mobile wagering and a safe alternative to the pervasive illegal market for the millions of Hoosiers who are already betting on sports.”
The law allows retail sportsbooks and online and mobile wagering; in-person registration is not required. State Rep. Ben Smaltz removed mobile wagering from the bill early on, but a conference committee added it back in at the last minute. Sports betting adjusted gross revenue will be taxed at 9.5 percent, with a portion directed to problem gambling services. Betting on esports or amateur athletes under age 18 is prohibited. Operators will pay an initial fee of $100,00 for a license, with an $50,000 annual renewal; sports wagering service providers would pay a $10,000 fee. The Indiana Gaming Commission will set limits on in-play betting and restrictions on data services.
The Indiana Gaming Commission will begin accepting sports betting applications on July 1. Brick-and-mortar sportsbooks could start taking bets by the start of the NFL season, with mobile following soon after, observers said.
Several conflicts of interest arose from the legislation, especially the provision that allows Spectacle Entertainment to move one of its Gary-based Majestic Casino licenses away from Lake Michigan to an area with more profit potential. Spectacle provided private flights worth more than $50,000 to fly Holcomb to Republican Governors Association meetings last July and November, giving Spectacle investors exclusive access to the governor.
In addition, principal Spectacle investor Greg Gibson arranged a contract for House Speaker Brian Bosma and his law firm last year with Vigo County, although it’s not clear what Gibson’s role with Spectacle was when he arranged the contract with Bosma. Also questionable is Spectacle’s hiring of state Rep. Jerry Torr for title insurance and closing services when the company purchased the Majestic Gary casinos. Torr then voted in favor of the legislation benefiting Spectacle.
Besides being allowed to move one of its licenses from the Gary lakefront for a $20 million fee, Spectacle would have to surrender its second license, although the company would receive a sizeable tax break. The gaming commission would then allow Spectacle and other casino operators to compete for the license to open a Terre Haute casino.
The legislation also moves up the date horse racetracks can offer live table games and increases the number and type of facilities a gaming operator can own, from two casinos to six casinos and racinos.
