The state of Indiana estimates that an additional $466 million will be generated every year within the next five years, if sports betting is legalized by the Indiana General Assembly.
This is the result of an analysis done by the Indiana Gaming Commission on the potential revenue of allowing for both in-person and mobile sports betting in the state.
The research carried out shows that the mobile sports betting will be in high demand and will initially start off at 57 percent but within five years account for 68 percent of the market.
Breaking down the economic impact of legalized sports betting, mobile betting revenue during the first year should bring in around $56.2 million with earnings continuing to increase year by year. The report claims that by year five, Indiana can expect retail and mobile sports betting to contribute $256 million annually.
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Legalizing sports betting in the state will also provide a boost to the local job market. The report states that 729 full-time jobs will be created by the fifth year and this means more tax revenues for the state. Indiana is expected to levy a sports betting tax of around 9.25 percent rate. Total tax revenue collected within the first five years is expected to be around $89 million.
In a statement, Jenny Reske, Gaming Commission Deputy Director said
The major takeaway from this report is that the market here is not pre-determined. The size will be determined by public policy decisions that are made regarding many issues, including distribution channels, taxation, the macropolitical environment and the regulatory environment
The U.S. Supreme Court repealed PASPA 1992 in May and gave each state the chance to pass its own sports betting laws. So far five states have already legalized sports betting but Indiana hasn’t been very quick in proceeding with its own sports betting legalization.
If Indiana does legalize sports wagering, it will need to set in place laws that regulate the industry and provide proper protection to minors and problem gamblers. There’s a lot of research that needs to go into the process and this includes what can be permitted and what must be made illegal. One of the debates that Indiana legislators will have to sort out is in-play betting and geo-location technology.
Indiana will most likely look at pushing forward sports betting legislation in 2019.
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