The updated report, commissioned by the Indiana Gaming Commission and conducted by Spectrum Group, estimated the first three years could bring in between $1.9bn and $2.1bn of revenue. This is a 5% increase on predictions made in the 2022 report.
Additionally, the study identified a potential $929m in igaming tax revenue over the first three years following legalisation. This was also a 5% rise on the previous report’s estimations.
Igaming has long been floated in Indiana, with a long-running push for online casino in the state dying in committee in 2023 having not been called for a hearing. There have been fears over a potential cannibalisation of the industry, although Spectrum Group’s report found igaming didn’t have a negative effect on other forms of gaming in other states.
Its chances of being legalised in 2024 appear slim, too, with state legislators agreeing not to bring in any new igaming legislation this year.
Igaming legislation yet to take off in the US
The US’ sports betting sector has grown rapidly, with online sportsbooks live in nearly half of all the nation’s states. Igaming is yet to find the same success, however, currently only being legal in seven states.
The lack of igaming legislation is affecting the American online scene. It has already prompted a major WynnBet roll-back in August, closing its operations in a number of states.
Only Nevada and Massachusetts operations, where WynnBet operates land-based properties, are guaranteed to continue.
Igaming also looks unlikely to be introduced in New York in 2024 after online gaming wasn’t included in Governor Kathy Hochul’s executive budget for 2025. This came after state senator Joseph Addabbo filed a revised igaming bill last week.
Yet, the potential for igaming is evident. Michigan, one of the states where it’s legal, recorded monthly gross igaming receipts in November. Igaming was also a big factor in Pennsylvania’s gambling revenue hitting a record $5.7bn in 2023.
Igaming grossed $1.5bn in the US in Q3. That was up 26% year-on-year and an all-time quarterly record. The numbers are clear to see, yet getting legislation through is still proving a struggle.
Indiana sports betting market flourishing
The report on the potential benefits of igaming to Indiana come after the state reported its highest month of sports betting revenue in December.
Indiana reported $50.6m in adjusted gross revenue for the final month of 2023, up 18.5% on the previous December. It was also a 64.8% hike on November 2023.
Consumers spent $503.1m during December, the second highest monthly amount since the state opened its legal market in September 2019. The total handle fell just short of another all-time high, just 2.1% behind November 2023’s $513.7m.
Ameristar Casino and partner DraftKings edged back into the lead in the Indiana market for December. The partnership generated $19.3m in revenue from $179.8m. In second, meanwhile, were Blue Chip Casino and FanDuel, which led in November ahead of Ameristar Casino and DraftKings.
Original article: https://igamingbusiness.com/gaming/online-casino/indiana-igaming-revenue-could-exceed-2bn-three-years/
