Online Casino Legislation Introduced in Indiana, Wyoming

Posted on: January 17, 2025, 03:07h. 

Last updated on: January 17, 2025, 03:07h.

Could 2025 be the year of legal online casino gaming expansion? Don’t bet on it.

online casino Indiana Wyoming
Indiana Rep. Ethan Manning (left) and Wyoming Rep. Bob Davis are behind legislation in their states to authorize online casino gambling. The odds of either iGaming bill passing are presumably long. (Image: Casino.org)

iGaming, or online casino gambling featuring interactive slot machines and table games, is limited to just seven states — Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. While state lawmakers in 39 states and Washington, DC, have got on board with sports betting, gambling on the internet has been slow to take.

As state legislatures convene across the country, gaming is again a subject matter in many capitals.

As for iGaming, bills have been filed to legalize online casino gambling in Indiana and Wyoming. Both states recently fielded market studies on the tax benefits of expanding gambling to the internet. Earlier this month, Virginia fielded an iGaming bill. 

Indiana iGaming Details 

In the Hoosier State, Indiana Rep. Ethan Manning (R-Cass) introduced House Bill 1432. The statute would allow the state’s commercial casinos, riverboats, and racinos to pursue up to three online gaming skins, or individually branded iGaming platforms.

Each iGaming licensee would be required to pay a one-time fee of $500K and an annual $250K payment to the state. The yearly charge would be allocated to responsible gaming and problem gambling services.

Manning proposes taxing iGaming revenue on a graduated scale from 22% for gross revenue less than $4 million, to 24% on revenue ranging from $4 million to $8 million, to 26% on revenue from $8 million to $10 million, to $28% on revenue from $10 million to $12 million, and to $30% on revenue upwards of $12 million.

Each iGaming operator would be allowed to deduct no more than $5 million in free play and promotional incentives each year. HB 1432 would also permit the Indiana Lottery to run instant games online.

A study from Spectrum Gaming Group published last year projected that Indiana could receive between $413 million to $929 million in new tax revenue during the first three years of legal iGaming. 

Wyoming Mulls Online Casinos 

In the Cowboy State, Wyoming lawmakers will also consider an online gaming bill. House Bill 162 comes from Rep. Bob Davis (R-Sweetwater) and would essentially be Wyoming’s first foray into commercial gaming aside from its state-run lottery.

HB 162 would allow commercial iGaming entities like FanDuel and BetMGM to pursue online gaming privileges. Licenses would cost an initial $100K, with annual renewals at $50K.

The Wyoming Gaming Commission would give preference to iGaming firms already licensed and operating in three legal online casino states. Davis’ bill says the Gaming Commission would be encouraged to issue “not less than five interactive gaming” licenses.

Gross revenue won by the iGaming operators would be subjected to a 16% flat tax. The first $300K received by the state each year would go to the Wyoming Department of Health to fund programs related to the prevention and treatment of problem gaming.

iGaming Has Many Foes

Last year, London-based regulatory intelligence firm Vixio issued a report suggesting that states are leaving $15 billion in untapped tax revenue on the table each year by keeping online casinos illegal. States that have tried to join the seven iGaming jurisdictions have faced much backlash from responsible gaming advocates.

Responsible gaming experts say in-person casino staff are trained to limit a person who is gambling erratically. Gambling while drunk, high, or under the influence of another substance is also prohibited in every legal gaming state. iGaming critics say consumer safeguards are limited online.

In his 2025 legislative outlook, Deutsche Bank analyst Carlo Santarelli said the firm doesn’t expect any states to authorize iGaming.