Less than 10 states in the US currently allow for legal online gambling, a stark contrast to the nearly 40 states that have legalized sports betting. States like New Jersey, Pennsylvania, and Michigan have emerged as major online gambling markets, prompting other states to explore the potential of legalizing online gambling.
In 2022, a report highlighted the potential benefits of online gambling for Indiana. The Indiana Gaming Commission (IGC) has once again sought the expertise of the Spectrum Gaming Group to analyze the sector and provide insight into how the state can benefit from legalizing online gambling.
The latest report, released last week, revealed that the legalization of online gambling could lead to significant tax revenue and job creation in Indiana. The estimates in the report surpassed figures from a 2022 whitepaper, indicating a strong potential market in the state.
The report predicted three different tax rate scenarios, with potential tax revenue varying between $98 million and $396 million for the first three years of legalization. At a 45% tax rate, Indiana could potentially benefit from close to $1 billion in taxes for the first three years of legal iGaming.
In addition to tax revenue, the report suggests that legalizing internet casinos could create new jobs and lead to “revenue synergies” when combined with online sports betting. Data from the report indicates that players who participate in both iGaming and sports betting tend to spend significantly more than those who only participate in one activity.
Despite the potential benefits outlined in the report, Indiana lawmakers have yet to take meaningful action towards legalizing online gambling. However, the report underscores the significant potential for tax revenue and job creation in the state if such measures were to be pursued.