A report commissioned by the Indiana Gaming Commission and conducted by Spectrum Group has found that the iGaming industry in the state could be able to generate revenue of up to 2.1 billion dollars over the first three years after legalization.
The report’s detailed prediction was that the iGaming sector could bring in between 1.9 and 2.1 billion dollars in revenue. This prediction is 5 percent more optimistic than what was revealed in the 2022 report.
The study has also pointed out that iGaming tax revenue over the first three years following legalization could amount to 929 million dollars for the state of Indiana. That prediction also represents a 5 percent increase on the estimations of the previous report.
The introduction of legal online gambling has been discussed for a long time in Indiana, with opponents claiming that online casinos would affect the activity of the long-standing land-based casinos in the state. However, the report claims that iGaming did not have a negative impact on other forms of gaming in other American states where it was introduced.
Despite the data provided in the report, chances for the legalization of online gambling in Indiana appear slim in 2024 because state legislators have agreed not to bring in any new proposals to this respect this year.
Lacking iGaming Legislation
The online sports betting industry has grown at a fast pace during the past few years in the United States, with online sportsbooks now legal in nearly half of the American states. However, iGaming has not been accepted on such a large scale, currently online gambling is legal in just seven states.
The lack of legislation for iGaming has prompted a major player such as WynnBet to close its operations in a number of states in August 2023. That left the major casino operator with activities just in Nevada in Massachusetts, where it owns land-based properties.
The chances of iGaming being introduced in New York also appear unlikely in 2024 after Governor Kathy Hochul has not introduced online gaming in the executive budget for 2025. However, state senator Joseph Addabbo did file a revised iGaming bill last week.
The example of the states that have introduced legal online gambling does provide some interesting data, though. Pennsylvania, for example, saw iGaming help its industry to reach a new gambling revenue record in 2023, a total amount of 5.7 billion dollars.
The iGaming sector attracted gross revenue of 1.5 billion dollars across the United States in the third quarter of 2023, an increase of 26 percent year-on-year and an all-time record for a single quarter.
Source: “Report finds Indiana igaming revenue could exceed $2bn within three years“. iGaming Business. January 19, 2024.