Indiana Legislature Ends Effort to Legalize Online Casinos and Lottery

By Jerry Smith Staff Writer Updated: 02/24/2025

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After much debate, Indiana lawmakers have decided not to go ahead with the bill to legalize online casino and lottery play in the state. House Speaker Todd Huston confirmed the decision, stating that the bill did not advance past a key financial review committee, preventing further consideration.

House Bill 1432 Introduced Earlier in the Session

House Bill 1432, which was introduced earlier in the session, passed through the House Public Policy Committee but didn’t receive a hearing in the Ways and Means Committee. This is where the financial effects and implications would have been reviewed.

Huston said that the bill’s complexity made it difficult for lawmakers to reach a consensus.

There’s all sorts of moving parts about how it impacts certain communities, and what it does to the overall gaming environment in Indiana,

Huston said in the report.

I think all those things just make it complex to work through.

There was at least one casino operator against the proposal, which shows the lack of unanimous support amongst stakeholders in the industry. The bill proposed expanding Indiana’s gaming industry, allowing licensed casinos to operate online gambling platforms and introducing online lottery options.

Rep. Ethan Manning introduced the bill last month and projected that legalizing online casino gambling and online lottery, together with increased sports betting taxes, could provide over $300 million per year in revenue for the Hoosier state.

The legislation called for operations to begin on September 1, and a new responsible gambling program would be introduced. Certain types of sports betting ads would have been restricted.

Too Many Obstacles

Indiana has been a more “gaming-friendly” state over the years. In 2019, after PASPA was overturned, the state legalized online and retail sports betting. It also operates over a dozen commercial casinos.

However, when it came to House Bill 1432, it faced many obstacles. Many lawmakers feared introducing online casinos would negatively impact land-based casinos and in-person lottery sales.

If the bill had passed, Indiana would have joined 14 other states in offering legal online lottery options. With the bill set aside, there is likely to be continued debates about Indiana’s gambling laws in the future. While we may see advocates pushing for online casino legislation, the divided opinions in the industry remain a major roadblock.