Indiana is witnessing a renewed effort to legalize online lottery sales and online gaming, which, if successful, would represent the most significant gaming expansion in the state since the legalization of sports betting in 2019. As lawmakers consider these changes, they are also looking into the potential relocation of a casino license to areas like Indianapolis or Fort Wayne, making 2026 a year of noteworthy advancements for gaming in Indiana.
Recent developments include a House committee approving a bill focused solely on digital lottery legalization by a vote of 9-3, while also proposing to integrate online gaming language into a routine administrative bill. This new approach comes after a previous attempt to pass both measures together faltered last session.
The push for an internet lottery, referred to as iLottery, is seen as crucial for the sustainability of the Hoosier Lottery, which is a quasi-state agency struggling to engage a younger demographic. “This really is a modernization of the Hoosier Lottery,” stated Jared Bond, the director of external affairs. While projections estimate that online sales could generate annual profits of approximately $30-90 million, the Legislative Services Agency anticipates a decline in retail lottery sales due to this shift.
Convenience stores across the state have expressed concerns regarding the impact of online sales on their brick-and-mortar operations. Retailers are advocating for an incentive program to compensate them for promoting iLottery products, as well as a reassessment of the commission structure, which has remained static for over ten years.
In parallel, efforts to legalize online gaming, defined as remote play for casino games, are gaining traction. Advocates like Democratic Rep. Kyle Miller argue that banning these activities does not eliminate the underground market and that regulation would benefit the state. He emphasized that the proposed legislation also includes provisions for a problem-gambling fund aimed at prevention and treatment efforts.
However, some lawmakers are cautious about introducing substantial public policy changes into broader bills that primarily address administrative concerns. While discussions are ongoing, it’s evident that interest in expanding gaming options is strong in Indiana.
House Bill 1052, which pertains to online gaming, remains under consideration, with possible changes expected soon. Additionally, the legislation may address the regulation or prohibition of sweepstakes online games, which mimic illegal gambling activities.
As Indiana continues to navigate these legislative efforts, the conversation surrounding the modernization of its gaming landscape highlights the state’s willingness to adapt to changing consumer behaviors and the competitive gaming market.