Online gaming will not affect Indiana’s casino industry, study finds
A report from the Indiana Gaming Commission has estimated that in its first year, online casino gaming could bring in revenue of $469m.
US.- According to a new study released on the potential impacts of igaming in Indiana commissioned by the Indiana Gaming Commission and conducted by Spectrum Gaming Group, legalising casino igaming won’t affect Indiana’s 12 brick-and-mortar casinos.
Currently, sports betting is the only type of online gambling allowed in Indiana. It was signed into law in 2019.
The 103-page report analysed how the launch and ongoing development of iGaming in the seven states where it’s legal, including Michigan, Pennsylvania and New Jersey, positively and negatively affected existing gaming enterprises in those states.
“The traditional casino industry has long searched for an effective means of attracting a younger demographic. The retail industry’s core players — particularly slot players — continue to age, and are not being replaced by younger players. As igaming offers a broader demographic reach, it would help address that demographic challenge,” the study sites.
Spectrum found that online casinos in Indiana without live dealer games won’t affect casino employment. However, if the state decides to add live dealers, as long as the dealing studios are located in Indiana, it could have a significant impact on employment.
The report projected that revenue could reach $469m in the first year after launching in Indiana. In its third year of operation, revenue could reach $830m. It also calculated projected tax revenue. Over the projected three-year timeline, at the highest tax rate estimated (45 per cent), online gaming in Indiana could generate $883m in tax.
The report also noted that a 15 per cent tax rate was often seen as a “sweet spot”, but said that Pennsylvania could become the most lucrative online casino state despite a 54 per cent tax on slots.
It said the biggest igaming challenges Indiana is likely to face include implementing measures to prevent money laundering, underage play, problem gambling, excessive promotions and meeting the need for expedited approval of new varieties of games.
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