Too many "moving parts" to consider

By Kate Northrop

A bill legalizing an online lottery in Indiana will not be considered further, preventing the state from joining several other jurisdictions that already conduct digital ticket sales.

Indiana legislators ended a bill that would have allowed Hoosiers to buy lottery tickets online, the reason being that the implications of the bill on the state's gambling industry as a whole were too "complex."

House Speaker Todd Huston announced that House Bill 1432 did not advance past a financial Ways and Means review committee after it was approved by an Indiana House committee vote of 9-2, therefore it will not make it to the House floor for further discussion.

The reason for the bill's stagnation was that there were too many "moving parts" beyond just direct online lottery sales. Since the bill addressed online casino gaming as well, Huston explained that there was just not enough certainty about how it would impact the state's entire gaming industry.

"There's all sorts of moving parts about how it impacts communities and what it does overall to the gaming environment in Indiana," Huston said. "I think all those things make it complex to work through."

Huston also mentioned that there were too many involved parties making up the gaming climate in Indiana with varying interests. A casino operator voiced opposition to the bill, drawing attention to the worry that the proposed legislation would cannibalize brick-and-mortar operations.

However, the bill would have allowed existing casinos to operate their own regulated online gaming platforms. The bill's sponsor, Representative Ethan Manning, had pointed out that Indiana residents already participate in unregulated gaming, meaning there are dollars being lost to existing operations lacking state oversight.

"It's important to remember that Hoosiers are playing casino games online," Manning said in defense of the bill. "These are operated by offshore companies. There are no consumer protections, responsible gaming, absolutely nothing."

Had the bill been passed, it would have allowed the Hoosier Lottery to begin selling tickets directly to players through its own online platform, including eInstants. While opponents of the bill cited concerns about physical retailers losing out on foot traffic, multiple state lotteries have asserted that brick-and-mortar sales have only increased since adopting digital sales.

The Hoosier Lottery is an avid supporter of online sales, arguing that the additional sales channel is of utmost importance in capturing younger audiences and producing more revenue for Indiana.

Manning estimated that, had the bill passed, all of its gaming components, including lottery sales and online casino gaming, would have produced $300 million annually for the state. Indiana would have joined 14 other jurisdictions that currently offer lottery ticket sales online.