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Licensing, Regulation And Taxes On Sports Betting In Indiana

In May of 2018, the Professional and Amateur Sports Protection Act was overturned, leading the way for states to legalize sports gambling. Indiana was one of the first to pass a law creating a path for legal sports betting.

Laws that were still on the books for Indiana didn’t allow sports gambling, so they had to be amended. With PASPA being repealed, sports betting became a state-level issue. All gambling in the state is regulated by the Indiana Gaming Commission.

Indiana now has numerous options both online and in person to legally bet on sports. Indiana decided not to implement some of the restrictions other states have on sports betting. You can bet on NCAA teams, props and live events. The only thing that is not allowed is individual prop bets on college athletes.

Real money online casino play is not allowed, but mobile sports betting is functioning at four sites. Casinos, daily fantasy and horse racing were all up and running prior to 2019. In May of 2019, Indiana became the 10th state to pass legalized sports gambling.

Licensing in Indiana

July 2019 is when the first licenses were handed out in the state of Indiana. Sept 2019 was the first date brick-and-mortar operations could start taking sports bets.

There are currently 15 places with sports wagering certificates of authority in the state, according to the in.gov website. Ten companies hold vendor licenses, which will allow them to offer mobile sports wagering, and four other companies hold sports wagering service provider licenses.

The Sports Wagering and Paid Fantasy Sports Division handles all licensing and regulatory issues with sports wagering and paid fantasy sports in the state of Indiana. Two different laws cover fantasy sports and sports wagering.

Paid fantasy sports was approved first, so it is under a different set of laws, but it is licensed now under a similar process.

It is $100,000 to apply for a sports wagering certificate or vendor license. To be a service provider, the fee was much lower at $10,000. More information on licensing for sports wagering can be found here.

BetAmerica got its go-live license for online betting on Sept. 11 of last year through Churchill Downs Interactive Gaming LLC. BetAmerica was allowed to go live on Dec. 21. This is the most recent mobile activation. It is partnered with Rising Star Casino Resort.

DraftKings application to go live was entered on Aug. 26 through Crown, Indiana, and DraftKings has a partnership with Ameristar Casino. It went active on Oct. 3, which was the earliest date allowed under its contract.

FanDuel Mobile handed its application in on Aug. 8. Its partnership is with Blue Chip Casino and Belterra Casino. It was ordered on Oct. 19, with the first day of allowing mobile gambling on Oct. 22.

Rush Street Interactive, which is called BetRivers on the mobile app, applied for its license on Aug. 8. It joined DraftKings as the first available app in Indiana. Its license was finished on Sept. 25, with gambling opening on Oct. 3.

Retail, or in-person betting, is available in 14 locations.

  • Location Date Available
  • Ameristar Casino Resort Sept. 1
  • Caesars Southern Indiana Sept. 12
  • FanDuel at Belterra Sept. 9
  • FanDuel at Blue Chip Sept. 5
  • French Lick Casino Resort Sept. 6
  • Hollywood Casino Sept. 1
  • Harrah’s Hoosier Park Sept. 19
  • Horseshoe Hammond Park Sept. 4
  • Indiana Grand Sept. 1
  • Rising Star Casino Resort Nov. 7
  • William Hill Sept. 12
  • Winner’s Circle Indianapolis Sept. 3
  • Winner’s Circle Clarksville Sept. 12
  • Winner’s Circle New Haven Sept. 19

Regulation of sports betting in Indiana

Everything gambling-related is regulated by the Indiana Gaming Commission. Senate Enrolled Act 339-2016 was passed to regulate and legalize paid fantasy sports inside the state of Indiana.

House Enrolled Act 1015-2019 is the law that covers the legalization of sports wagering.

Sports betting sites must file for a license every year and are subject to a full investigation every three years. All employees must be screened and have to pay a licensing fee to be officially registered in the state system.

This is true of casino, off-track betting and sportsbook facilities. The only type of bet that Indiana does not allow is prop bets on college athletes. There are tons of sports you can bet on in Indiana. The following have all been approved for gambling.

  • Aussie rules football
  • Auto racing (NASCAR, IndyCar, Formula One and Constructors’)
  • Baseball (MLB, college and Triple-A)
  • Basketball (NBA, NCAA, Euro, IBF, WNBA)
  • Bowling (PBA)
  • Boxing (IBF, ABCCS, WBA, WBC and WBO)
  • Cricket (ICC and men’s and women’s World Cup)
  • Cycling (UCI)
  • Darts (British darts and PDC)
  • Football (NFL, NCAA, CFL, XFL and AFL)
  • Golf (PGA and eight different tours)
  • Hockey (NHL, NCAA, World Championships, KHL and IIHF)
  • Lacrosse (NCAA)
  • MMA (ABCCB, One Championship, PFL, UFC and Sports)
  • Olympics
  • Other (Academy Awards and other entertainment awards)
  • Rowing (FISA)
  • Rugby (Four Nations, NRL, Six Nations, World Cup and World Rugby)
  • Sailing (America’s Cup and International Sailing Federation)
  • Skiing and snowboarding (U.S. Ski)
  • Soccer (16 professional leagues, FIFA, UEFA and NCAA)
  • Softball (NCAA)
  • Tennis (ATP, ITF, NCAA, USTA and WTA)
  • Track and field (IAAF and NCAA)

Taxes on sports betting in Indiana

Indiana’s tax rate on gaming revenue is 9.5%. This rate is going to be much lower than the neighbor to the west when it eventually gets going, as Illinois’ tax rate on sports betting will be 15%.

Iowa and Nevada are the only states with lower tax rates than Indiana. Rhode Island, West Virginia, Pennsylvania, New Jersey, New York, Oregon, Mississippi and Delaware all went with higher tax rates.

Indiana bettors can be glad that more of their money stays in their own pockets.

Through the end of November 2019, Indiana collected a handle of $274,189,721. The state had tax revenue of $2,915,628.

Indiana residents were excited as they were fifth in money bet behind only Nevada, New Jersey, Mississippi and Pennsylvania. What is even more impressive is that they had only three months to get to that total.

By the numbers

Indiana hired a company to do an analysis of what sports betting could bring to the state. We will go over a few of the estimates and how close they have been to date. Keep in mind that Illinois passed sports betting laws first, so it was assumed it would be first to go live. That has not been the case as Illinois is still dragging its feet.

It was estimated that $256 million in sports betting revenue would be generated by year five. In about four months, with only three venues having mobile betting, Indiana saw over $30 million in revenue from a handle of $274 million, according to the legalsportsreport.com.

Eilers & Krejcik also estimated that 57% of revenue would come in on mobile in year one, increasing to an estimated 68% by year five.

Since mobile took longer to get going, you can bet the revenue numbers will only continue to grow. Of that total number, Indiana gained just under $3 million in taxes. That number does not include the licensing fees.

The total economic impact will grow to nearly $500 million by year five. This is not small potatoes for a state that is already in the positive. If true, this amount can really make a difference when we are talking about education and infrastructure. You can find more from the report here.