A report commissioned by gaming regulators in Indiana estimates that online casino gaming, including poker, would generate about $469 million in revenue in its first year, increasing to $830 million by year three.
The report’s estimate places the Hoosier State smack in the middle of the other six US states with legal online casinos and poker rooms.
But perhaps more urgently, the report by Spectrum Gaming Group opined that online casino gaming and poker shouldn’t cannibalize revenue from the state’s 12 land-based casinos.
MI-NJ-PA “Offer Best Insights” for IN
In a 103-page report released Wednesday, Spectrum told the Indiana Gaming Commission (IGC) that “based on the evidence from the states where iGaming has been introduced, there is little, if any, cannibalization of revenue from established casinos.
“This is particularly true in states where the in-person gaming options are easily accessible to most of the population, such as in Delaware and West Virginia.”
Spectrum analyzed online casino gaming in six states — Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia. It dubbed Michigan, New Jersey, and Pennsylvania the “Big Three” for online casinos and poker rooms.
The firm said the Big Three “offer the best insights into potential iGaming in Indiana, as they also have more robust, widespread commercial gaming industries.”
IN Would Be a Mid-Sized Online Casino State
In terms of revenue, Indiana would be smaller than the three heavyweights. But the Hoosier State would be about twice the size of Connecticut and would dwarf Delaware and West Virginia.
According to revenue data from state regulators, New Jersey had about $1.6 billion in online casino and poker revenue over the past 12 months — since September 2021. Michigan was second with about $1.5 billion in revenue, followed by Pennsylvania with $1.3 billion.
At the other end of the spectrum, Connecticut had $221.8 million in revenue in the past 12 months, West Virginia had $94.3 million, and Delaware had $12.8 million.
First-Year Revenue Estimated at $469 Million.
Spectrum estimates Indiana could generate $469 million in online casino and poker revenue from the first full year of legalization. The firm estimates the two verticals could make $663 million in the second year and $830 million in the third.
Estimates on tax revenue varied. Under a scenario where Indiana levied a 20% tax rate, the state would generate $55 million in tax revenue during the first year, increasing to $121 million in year two and $164 million in year three. That would total $341 million over the first three years.
But under a high tax rate (45%), Spectrum estimates tax revenue of $255 million in the first year, $313 million in the second, and $376 million in the third — for a total of $943 million of tax revenue in the first three years.
IN Well Suited for iGaming Expansion
Indiana online sports betting launched in September 2019. The state’s gaming regimen requires operators to partner with one of the state’s 12 land-based casinos — which include riverboats and racinos. The casinos are allowed up to three skins for online and retail sportsbooks.
Despite not having any online casinos, Spectrum said Indiana would be well suited to expanding gaming because it already has land-based casinos and a regulatory structure.
“Spectrum believes that the fast embrace of digital sports betting by both operators and states will facilitate the expansion of iGaming, as sports betting and iGaming are simply different products being offered on the same apps/websites and overseen (in most cases) by the same regulatory authority,” the firm said.
DraftKings operates an online sportsbook for Ameristar Casino, while FanDuel does the same for Belterra Casino Resort and Blue Chip Casino. Betway and BetMGM each run online sportsbooks at Belterra.
Caesars runs retail sportsbooks at two casinos — Horseshoe Hammond and Caesars Southern Indiana — and Harrah’s Hoosier Park, a racino. Caesars also runs online sportsbooks at Horseshoe and Harrah’s. Meanwhile, Unibet also runs an online sportsbook through Horseshoe Hammond.
Barstool and PointsBet each run an online sportsbook at Hollywood Casino Lawrenceburg. Barstool also runs the retail sportsbooks at Hollywood and Ameristar.
BetRivers runs an online sportsbook at the French Lick Resort and is also a partner for the retail sportsbook there. SBK and WynnBET run online sportsbooks at Rising Star Casino.
Bally Bet operates an online sportsbook at Bally’s Evansville (formerly Tropicana Evansville), but the retail sportsbook there is operated by William Hill.
Learn more about Real Money Online Casinos in the US in our complete guide!