INDIANA: Key Takeaways From January 28 Hearing
Today the House Policy Committee heard testimony and voted out (9Y to 2N) an amended version of the iGaming bill. An engrossed copy of the bill is not yet available, but there were some notable changes, including the removal of the charitable and e-pull tab language that was removed from the bill and made as a standalone (which also passed).
The bill was also amended to include a sports wagering tax increase to 20%. While we testified in support of the bill, we have spoken separately with Chairman Manning regarding our concerns with an increased tax rate.
Even though the e-pull tabs were placed into a separate bill, there is still concern from land-based operators about the bill progressing on its own. Further, while we fully support the iGaming portions of the bill, we need to continue to advocate against the OSB tax. The longer that provision remains in the bill, the more chance it could become law, even without iGaming.
Committee passage means the bill will move next to the House Ways and Means Committee. There is nothing immediately scheduled, but conversations are ongoing with the committee chair and various members. If the bill does get a hearing, it will likely be in the next couple of weeks.
A few notable takeaways from the hearing:
- (No surprise) Churchill Downs opposed the bill.
- During their testimony they alluded to a coalition of casino companies organizing to oppose iGaming on a national level – they included CDI, Cordish, Elite, Monarch, and Jack (which is only in Ohio). It’s the first I’ve heard of this, and have flagged as we need to learn more.
- Somehow, the CDI representative was not aware that the company partners for iGaming in Pennsylvania, nor were they aware that they operate Twin Spires, the country’s biggest online horse racing platform, operating across the country. We reminded the Committee members of these facts during our testimony.
- Another big thing was a comment made by J&J, one the biggest VGT operators in the country. He said that VGTs and iGaming can coexist in markets and pointed to both PA and WV where this happens without negative impact to one another. IMO, this is a big statement for them to make, and we need to make sure that every lawmaker in the state of Illinois sees it.
- Attached is the analysis done by GeoComply (that we reference in our testimony), quantifying and illustrating the illegal market in IN, along with the demand from Indiana residents for legal iGaming. This proved to be powerful information for the committee.
Once a recording of the live stream is available, we will circulate to members.