Proposals for allowing the Hoosier Lottery to sell tickets online and the opening of a Fort Wayne-area casino are in the cards for what could be Indiana’s biggest gambling expansion since sports wagering was legalized in 2019.
Legislators started advancing the Fort Wayne casino plan in December and are expected to take up an online lottery bill soon after they return to the Statehouse in January.
While those look to be the gambling topics most likely to gain traction, some lawmakers also want to authorize internet casino games and to push consideration of a downtown Indianapolis casino.
Rep. Ethan Manning, chair of the House Public Policy Committee that handles gambling-related bills, said he believes “i-lottery is much closer than i-gaming” to winning the approval of lawmakers.
Manning’s committee last year endorsed a bill for both online lottery and casino games, but it didn’t reach the full House for a vote amid concerns that internet gambling would draw business away from physical casinos and risk greater gambling addiction.
Manning, R-Logansport, said during the recent Dentons Legislative Conference that he was sponsoring a bill for this session dealing only with the online lottery.
“I want to try and move that this year, because if we get it passed this year, by the time we pass the bill and get it implemented, we’re talking 12 to 18 months before we start collecting that i-lottery revenue,” Manning said. “If we get it passed this short session, then we’ll have that revenue to consider going into the 2027 budget year.”
Online lottery details
An analysis prepared by the Legislative Services Agency for last session’s proposal projected that online sales would boost the Hoosier Lottery’s revenues by between $314 million and $629 million in the third year.
That would come as the lottery’s sales have been flat at around $1.7 billion for the past five years.
Online lottery sales likely wouldn’t start until the summer of 2027 as lottery officials hire the needed vendors and set up measures to confirm app users are at least 18 years and and are present inside the state lines when making purchases, Hoosier Lottery spokesman Jared Bond said.
If given approval for online sales, the Hoosier Lottery plans to sell both instant games and tickets for jackpot drawings such as Powerball and MegaMillions via the internet, Bond said.
The lottery could also host online instant games on its site.
The addition of online sales was projected to boost the lottery’s annual profits — $340 million for fiscal year 2025 — by between $25 million and $80 million in the third year.
Illinois, Kentucky and Michigan are among 18 states currently with online lottery sales, he said.
“It doesn’t cannibalize traditional lottery,” Bond said. “In essence, it really brings new players to the market and actually helps traditional brick-and-mortar retailers grow as well, sometimes by double digits, in their sales.”
The Indiana Food and Fuel Association, which represents convenience stores, isn’t opposing the push for online lottery sales, according to the group’s lobbyist, Matthew Norris.
“We have learned from the experiences in other states that retailers have not been negatively impacted when i-lottery has been introduced because of the cross-promotional efforts to drive business into brick-and-mortar retailers,” Norris said. “So we look forward to partnering with the Hoosier Lottery to explore ways for retailers to benefit from the new offering.”
Debate over Fort Wayne, Indianapolis casinos
Committees in both the Senate and House got an early start on consideration of the Fort Wayne casino with December public hearings.
The Senate Public Policy Committee voted unanimously Dec. 9 to advance a bill to the full Senate, while the House committee is expected to take action in early January.
Lawmakers are weighing whether to approve the state’s 14th casino license for the Fort Wayne-area project or allow the Rising Star Casino from southeastern Indiana — owned and operated by Full House Resorts — to move there. That Ohio River casino generates the least casino tax in the state and has seen revenues plummet since casinos opened in Ohio and gambling expanded in Kentucky.
Manning said he supported transferring the Rising Star license to Fort Wayne as such a move would help Indiana’s two other Cincinnati-area casinos in a market that has changed greatly since those opened more than 25 years ago.
“I think that’s something we need to consider moving forward, not just solving one problem, solving more than one at the same time,” Manning said.
A study released by the Indiana Gaming Commission in October found that Indianapolis was the top location for a casino relocation, followed by northeast Indiana.
While the Indianapolis region would bring the state more tax revenue, it would also hurt the two casinos nearby in Shelbyville and Anderson that also have horse tracks and help support the horse racing industry. The Fort Wayne aarea was seen as more of an open market, impacting casinos in Ohio and Michigan.
Some Indianapolis lawmakers are advocating for a downtown casino in the city, but they face resistance from Republican House Speaker Todd Huston and others.
“I believe the Indianapolis market is already adequately served by the current gaming facilities,” Huston said in a statement. “I do support exploring a new gaming license in Northeast Indiana and the economic development opportunities it could bring to the region.”
Approval for new casinos in Gary and Terre Haute came in the state’s last major gaming expansion bill in 2019, when lawmakers also allowed the start of sports wagering.
Indiana Capital Chronicle is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Indiana Capital Chronicle maintains editorial independence. Contact Editor Niki Kelly for questions: info@indianacapitalchronicle.com.