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Indiana Joins the $10 Billion Club for Lifetime Sports Betting Handle
By Jeff Osienya Dec 16, 2022 IndustryThe Hoosier State becomes the sixth US state to see an eleven-figure lifetime handle after November’s activity pushed the volume of sports bets since debut past $10 billion. Lawmakers are now pushing for the introduction of iGaming in 2023.Indiana is now the sixth US state to hit the $10 billion mark in sports betting handle after the 2018 verdict on PASPA. Additionally, in its latest industry performance update, the Indiana Gaming Commission reported more than $456 million wagered in November alone, which was the sixth all-time high in the state’s history.
Moreover, in 2021, the Hoosier state also reported a record $4 billion in its yearly handle, becoming the eighth state to reach that amount in annual sports wagers. Other states that have already cleared over $10 billion in lifetime wagers since legalizing sports betting are Nevada, New Jersey, New York, Pennsylvania, and neighboring Illinois.
With the new milestone, Indiana has joined the fiver, 39 months after having legalized sports gambling in September 2019. Revenue generated by sportsbooks since debut is now at $800 million, with state coffers raking in a whopping $80 million for the said period.
Basketball Brings in Big Money, But Football Stays at the Top
Basketball has always held a special place in the hearts of Hoosiers, dating back to the start of the 20th century. In November, the sport collected more wagers than any other betting market except football. Sports fans wagered a whopping $124 million in November, which was way higher than October’s $52 million number. Unsurprisingly, football (college football and the NFL) brought in $137 million, while parlay, baseball, and other sports brought in $126 million, 3.7 million, and $59 million, respectively.
The lifetime handle record is shared by top gaming operators, including DraftKings, FanDuel, and BetMGM, who made records of their own by surpassing $1 billion over the period they have been operating in the state. Most sports betting companies reported better figures than in October, with DraftKings leading at $143.8 million in sports betting handles. FanDuel came in second at $141 million, which was $18 million more than the previous month, making it the biggest winner as it also brought in more revenue than its counterparts.
BetMGM collected $44.4 million, while other top sportsbooks like Caesars Sportsbook, BetRivers, and Barstool Sportsbook reported handles worth $43 million, $13 million, and $17.5 million, respectively. Unfortunately, the high handles were not reflected across all operators as PointsBet reported a $920,000 handle, albeit recording a 9.1%-win rate. On the other end of the spectrum, the worst performers included WynnBET, Bally Bet (just recently approved as an Indiana bookmaker), and Betway.
New Bill Set to Introduce iGaming Next Year
As Hoosiers celebrate the historical handle, state legislators are getting ready to consider a new bill that could see online casinos made legal by September 1, 2023. The bill was tabled by Sen. Jon Ford and Rep. Ethan manning, and if passed, it is estimated that it could generate up to $1 billion in annual revenue for the Hoosier state.
The legislative duo previously proposed another bill in 2022, but it did not make it due to several obstacles, including the Spectacle Entertainment scandal and pandemic-induced hurdles. Nonetheless, 2023 holds some hope for the proposed iGaming bill as it has a longer session and also happens to be the budget year. In addition, Indiana residents have been betting online on sports for years, and legislators are now looking to add iGaming to the gambling menu in the Hoosier State.
Indiana’s iGaming bill is meant to introduce internet casino games to Indiana casinos and racinos and legalize online poker, live dealer casino, blackjack, and an online lottery. There is already a first draft of the bill, which will be subject to refinements over the coming weeks. It covers several aspects of online casino betting and stipulates that interested operators would need to partner with existing land-based casino brands for eligibility to get licensed.
Since there are 12 brick-and-mortar operators in the state, each can partner with up to three online gaming companies. So, from the look of things, there is provision for up to 36 ‘skins’ that may facilitate online casino games in Indiana.
Proposed Taxation for Indiana’s iGaming in the Draft ill
Licensing fee is more friendly to operators as compared to other states as they would be required to initially pay $500,000 and then $50,000 for every year during the license period. The bill then proposes an 18% tax rate at the start, which would increase to 20% after five years.
Further, according to the draft bill, 80% of the collected tax revenue would go to the state’s general fund for use on unspecified programs. Meanwhile, 8.5% would be channeled to the retail partner’s county, another 8.5% to the retail partner’s city, and 3% to initiatives geared towards problem gambling mitigation and education. Racetrack and riverboat casino operators will also be required to remit 12% of their online casino revenue to the horse racing industry in the state.
Some security measures are also mentioned in the bill to encourage responsible gambling. The primary security standards are the provision of multi-factor authentication to protect players from cyber-security attacks and a self-exclusion policy that will be implemented by both the state and individual operators. There is also an emergency clause that lobbies for faster action by the lawmakers and the Indiana Gaming Commission.
A Bright Future Ahead for Indiana’s Gaming Scene
Riding on the success of the sports betting industry in the state, the online casino bill hopes to gain approval from lawmakers and residents alike. The gambling industry in Indiana has proved progressive, and most stakeholders have expressed optimism that 2023 would be the year the state adds online casino gaming to its gambling revenue stream. Developments in the bill will be determined in a few weeks as soon as the Indiana legislative session kicks off in January 2023.
All the same, the Hoosier State is doing pretty well with just online sports betting. Online sports betting has been the preferred mode of betting on games, with 91.2% of all bets in November being placed online as opposed to retail sportsbooks. Even as the NFL comes to a close, the series of sporting events lined up will provide enough betting markets to keep the numbers up, especially basketball.
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