In Indiana, the Interim Legislative Study Committee on Public Policy recently voted to recommend legislation allowing legal sports betting in Indiana. Lawmakers noted the results of a forecast by Eilers & Krejcik Gaming which stated, “On balance, we believe the risks associated with delaying sports betting beyond the 2019 legislative session clearly outweigh the rewards.”
Indiana Gaming Commission Executive Director Sara Tait said sports betting “is something that has been successfully regulated elsewhere for years, so we’re not going to have to reinvent the wheel.” However, study committee Chairman state Rep. Ben Smaltz cautioned, “There are many perils down the pathway before it becomes law. My concern is the regulations, the funding.”
The Eilers & Krejcik report recommends offering retail (in-person) and mobile online betting, setting reasonable tax rates and allowing wagers on college sports. It said legalized in-person (retail) and mobile betting could bring in $56.2 million in direct economic impact in the first year and $256 million in five years. Also, sports betting could generate $466 million a year in statewide economic impact by the fifth year and create 729 full-time jobs.
The report also indicated, with a 9.25 percent tax rate on sports betting gross revenue plus licensing fees, the state could receive $23.5 million in annual tax revenue by the fifth year, for a total of $89 million in the first five years.
Gaming Commission Deputy Director Jenny Reske said, “The major takeaway from this report is that the market here is not pre-determined. The size will be determined by public policy decisions that are made regarding many issues, including distribution channels, taxation, the macropolitical environment and the regulatory environment.”
The analysis was based on House Bill 1325, which was introduced in the 2018 legislative session.
