Your look at the next few months in the Hoosier gaming milieu

We head into the 2025 legislative session with continued uncertainty on some key items and individuals.

When we put this issue to bed on Thursday evening, there was no word yet on whether Governor-elect Mike Braun (R) was planning to make changes in the leadership of any of the state’s big three gaming-related agencies as he prepares to assume the reins of government on Monday, January 13.

Despite assorted rumors, Sarah Taylor remains director of the Hoosier Lottery, Deena Pitman is still the executive director of the Indiana Horse Racing Commission (which, as old-timers should recall, selects its own top staffer), and Dennis Mullen continues his tenure as executive director of the Indiana Gaming Commission.

If we were to be making book on this lineup remaining intact, we’re not sure what the wagering line would favor, but given all the speculation, we could make a dent in the Medicaid deficit on the vigorish.

As for the status of legislation, that also remains somewhat of a mystery at this point.

Following a two-session informal moratorium on gaming issues imposed by legislative leaders over ongoing federal investigations of lawmakers and the gaming industry (that resulted in two former House members and one former senator serving time in federal prison after entering guilty pleas), the reluctance to legislate appears to largely be over – despite one ex-lawmaker still serving his prison sentence being convicted for his part in a conspiracy, other members of which have not been publicly disclosed.

That tidbit comes from our Hannah News Service sister newsletter INDIANA LEGISLATIVE INSIGHT, though we would caution that leadership does not appear to view gaming measures with any imperative this year – despite the biennial logjam – so they will sink or swim on their own volition and without any boost from the respective caucuses.

The key gaming bills expected to be reviewed this session include a Senate bill that would authorize a move for a casino license from Ohio County, and a House omnibus measure that will be authored by Rep. Ethan Manning (R) of Logansport, chair of the House Committee on Public Policy . . . neither of which has been formally filed by press time.

The intent of the Senate bill (we’re expecting this to come from Sen. Andy Zay (R) of Huntington) will be to move the struggling Rising Sun casino license to New Haven.

How clean that bill might start and end up will be interesting to watch.

As you’ve read in these pages over the past few months, most of the lawmakers from the New Haven area are not on board with the local officials – despite both groups largely comprised of Republicans. Other operators are looking for the opportunity to compete for any new license in New Haven (or wherever) and not simply allow the Ohio County operator to switch.

Leading lawmakers are referring to the measure in conversations as the “New Haven bill,” which would seem to bode well at the outset for that particular community.

Transfer fees (remember those?!), other local payments, and who to make Ohio County whole for how long (bear in mind the antipathy of House Speaker Todd Huston (R) of Fishers to hold-harmless agreements) will also be contentious, and other communities (watch Lake County) may also try to glom on to this bill to add a license or allow a venue swap.

The proposed transfer would mean a substantial windfall for state coffers even absent a transfer fee, effectively “free” revenue for the state going forward that would be hard to ignore – but for GOP legislative leaders making it clear that they won’t countenance policy changes simply to chase fiscal benefits. The Senate is key to this legislation; if it squeaks through there, it should be approved in the House (absent – or maybe even with – major surgery there).

The Manning bill – as has been envisioned – would approve iGaming for the state, expanding the popular mobile sports wagering option (careful readers of this newsletter know that more than 97% of Hoosier sports wagering handle is generated from online, and not in-person wagering).

The question of cannibalization of casino jobs and revenue will be a key point in debate, as will the tax rate to compensate for lost brick-and-mortar gaming. We may also be playing catch-up, as Michigan already offers iGaming and Illinois’ governor late last month labeled online casino gambling “worthy of consideration” in his state . . . but a parallel “catch-up” argument made by cannabis legalization advocates has decidedly fallen short with GOP legislative leaders.

There may also be an effort by advocates of problem gaming prevention and treatment programs made to limit the use of AI by operators in customizing the virtual product to each gambler.

The Manning bill would also allow the Hoosier Lottery to join all of our neighboring states in offering online lottery sales and games, as well as authorize veteran service organizations to transition to e-tabs. Over the fall, discussions were ongoing about whether the e-tabs would take the form of slot-like devices (resembling the pre-compact bingo machines in use at Four Winds Casino South Bend that were effectively undistinguishable from slot machines offered by the state’s commercial operators), or be available on mobile tablets.

You should watch to see whether Type II licensees and other charity game operators seek to gain parity if the VSOs are allowed e-tabs.

This bill could end up adding the license transfer provisions in conference (or earlier), depending upon how sensitive this issue might be if it flew solo.

Gov.-elect Braun told your favorite newsletter shortly before the election that he’s open to expansion on both fronts being proposed: iGaming and the license move.

We’ve also told you about HB 1053, a Manning-authored measure that would authorize the Indiana Horse Racing Commission to adopt rules that incorporate by reference the most current version of the: (1) model rules; and (2) model rules concerning foreign substances; adopted by the Association of Racing Commissioners International, as well as address some internal staffing issues; fines and suspensions; and veterinary records related to IHRC investigations.

We may also see more attention paid to charity gaming issues this session.

Senate Committee on Public Policy Chair Ron Alting (R) of Lafayette is behind SB 108, legislation that would allow a qualified charity gaming organization to use the net proceeds from an allowable gaming activity “for any lawful purpose of the qualified organization.” The legislation would afford charity gaming entities greater flexibility in deploying funds generated by gaming activities. Current law only allows proceeds from these activities to be utilized for repair; maintenance; or improvement of owned real property used for the lawful purposes of the qualified organization.

HB 1043, authored by Rep. Mark Genda (R) of Frankfort, would create contest-based raffles for charity gaming defined as the selling of tickets or chances to win a prize award based on the result of a specific event or contest – including a sport horse competition, which would effectively legalize betting on horse races at county fairs and the Indiana State Fair. The measure is

co-authored by Rep. Manning, and has been referred to the panel which Rep. Manning chairs.

You are also likely to see legislation authored by Rep. Justin Busch (R) of Fort Wayne to expand the use of credit cards to forms of charity gaming not currently eligible for such purchases. That measure should have a strong chance of success.