The bill failed to pass scrutiny by a key House committee on Thursday
Indiana’s latest attempt to expand online gambling has stalled, as House Bill 1432 failed to gain traction in the state legislature. The bill, which sought to legalize online casino gaming and digital lottery options, did not advance past a key financial review committee, effectively ending its chances this session.
House Speaker Todd Huston confirmed that the proposal did not receive a hearing in the Ways and Means Committee, where lawmakers evaluate the financial impact of legislation. While the bill had earlier passed through the House Public Policy Committee, it lacked enough support to move forward. Huston described the proposal as complex, with multiple stakeholders in the gaming industry holding different views on its potential effects.
One of the main points of contention was how online gambling might impact existing casinos and retail lottery sales. Some opponents feared that allowing digital gaming would reduce brick-and-mortar casinos’ traffic, cutting their revenue. At least one casino operator publicly opposed the bill, highlighting the divide among industry players.
Supporters of the legislation argued that legalizing and regulating online gambling could bring economic benefits. Many Indiana residents already engage in online gaming through unregulated sites, and proponents saw an opportunity to create a legal framework that would generate tax revenue for the state. Rep. Ethan Manning, who introduced the bill, estimated that the expansion of digital gaming and a tax increase on sports betting could provide over $300 million in annual revenue.
The proposal also included measures to address problem gambling, such as funding addiction treatment programs through penalties imposed on gaming operators. The Hoosier Lottery backed the plan to introduce online lottery games, viewing it as a way to sustain long-term revenue growth.
Had the bill passed, Indiana would have joined other states like Michigan, Illinois, and Kentucky in offering legalized digital lottery options. With the measure now sidelined, future discussions on online gambling are expected, though divisions within the industry and concerns over market shifts remain key challenges.
