Legislative Roundup: Indiana Makes iGaming Progress, Multiple Bills Filed In Hawaii

The opening month of legislative sessions means internet casino and mobile sports betting bills are being filed and debated nationwide. Casino Reports continues to follow all the statehouse action as 2025 has the potential to be a big year in the gaming industry.

Indiana iGaming moves forward

In some respects, Indiana Rep. Ethan Manning’s HB 1432 to legalize iGaming should have been expected to advance out of the Public Policy Committee, since he is the chair. But the 9-2-2 vote Tuesday that formally moved it to the state’s Ways and Means Committee for consideration was a welcome sight for proponents after multiple failed efforts in recent years.

The Hoosier State has long been on the short list to be “the next state” to legalize iGaming. Indiana has also watched neighbor Michigan reap nine-figure tax receipt windfalls from internet casino operator revenue every year since launch in 2021, including $450 million-plus last year.

There were some changes the Ways and Means Committee will debate that make advancing Manning’s bill to the House floor far from certain. A provision that would more than double the mobile sports betting tax rate on adjusted gross revenue from the current 9.5% to 20% was added. The state would have collected an additional $49.5 million in tax receipts had that been in place in 2024 based on the $471.5 million AGR reported by online operators.

Manning’s section on electronic pull tabs was moved into a separate bill, HB 1433, which would allow American Legion, VFW halls, and bars and taverns to have certain electronic games. Though it passed by a unanimous 13-0 vote, it has the potential to rankle the casino industry. Lobbyist John Hammond of PENN National Gaming — which operates two casinos in the state — called e-pull tabs “a live grenade in the process” during testimony according to the Indy Star.

Not all of the casino industry is backing an expansion into iGaming. Churchill Downs, which opened a casino in Terre Haute last April, spoke in opposition to HB 1432 citing potential revenue cannibalization and a loss of jobs at brick-and-mortar casinos.

Hawaii looking at iGaming and OSB

Legislators in Hawaii are looking to legalize both iCasino and sports betting in the same session. Hawaii state Sen. Ron Kouchi filed SB 1507, which would create the Hawaii Lottery as the regulatory body for internet casino gaming, which would include online poker via the Multi-State Internet Gaming Agreement that includes Nevada, Michigan, New Jersey, Pennsylvania, West Virginia, and Delaware.

There is also specific wording in Kouchi’s bill that does not designate the Hawaii Lottery as a state agency, but rather a “public corporation registered with the director of commerce and consumer affairs and shall be subject to the corporate laws of the State.” Another notable provision in the bill is the agency being able to “offer legally compliant free-play games and sweepstakes with Hawaii-related prizes to individuals outside of Hawaii, for the purpose of attracting tourists and providing free exposure for Hawaii and Hawaii businesses to domestic and overseas markets.”

Kouchi’s bill has a companion in the lower chamber, HB 1434, introduced by Rep. Nadine Nakamura. Kouchi’s bill was steered to the Senate’s Economic Development and Tourism Committee, while Nakamura’s legislation was moved to the Economic Development & Technology Committee in the lower chamber.

There are competing sports wagering bills filed for legislative consideration. SB 1569 and HB 1308 propose mobile sports betting to be regulated by the state’s Department of Business, Economic Development, and Tourism with a tax rate of 10% on gross revenue. The Senate bill was introduced with bipartisan support — Republican Kurt Favella joined six Democrats — while the House version was introduced by Majority Caucus Leader Chris Todd and two other Democrats.

SB 1572, introduced by Sen. Kim Decoite, would create the Hawaii State Sports Wagering Commission as the regulatory body and tax both retail and mobile sports betting at 15%.

New York may crack down on sweeps

New York State Gaming Commission Chairman Brian O’Dwyer expressed concern about aspects of sweepstakes casino operations, most notably how such operators try to promote users to purchase virtual chips as a means to prolong playing.

“In my limited interactions with the activity, several operators seem to be skirting the law, or quite possibly violating the law,” O’Dwyer said at Monday’s meeting. “That is, with some, when a patron runs out of virtual chips and he is encouraged to keep playing by buying more chips.

“I have serious concern that there are operators conducting business inside our state that are running afoul of New York’s penal restrictions on unlawful gambling. … It is my understanding that staff have made several referrals to law enforcement and is assisting in case development.”

The Empire State is the latest to wade into sweepstakes casino machinations, which takes on added impact as New York state Sen. Joseph Addabbo again introduced legislation to legalize internet casino gaming. The state also has three downstate brick-and-mortar casino licenses that are expected to draw multiple applicants by the June 27 deadline.

Illinois bill proposes to legalize DFS

Illinois, the state that enacted the first true progressive tax on sports betting operator revenue, has a bill in the state legislature that would legalize daily fantasy sports contests. The Fantasy Sports Consumer Protection Act, introduced by state Sen. Lakesia Collins, would allow the Illinois Gaming Board to regulate DFS play.

The IGB would have the final say on the tax rate of DFS play, though SB 1224 creates a narrow range between 10% and 15% of adjusted gross operator revenue. The bill would also remove DFS play from the definition of “sports betting” in Illinois.

A separate bill, SB 1349, filed by Sen. Bill Cunningham, would amend the Sports Wagering Act to grant a master sports wagering license for internet and mobile betting to an operator for $15 million. It would also remove the bidding process for the three online-only licenses, which currently cost $20 million. The IGB has conducted two such bidding processes without granting a license.