Indiana residentes are already gambling online, so, it sounds logical to regulate and tax it. The proposed legislation allowed Indiana's licensed casinos to offer interactive electronic gaming alongside the Hossier Lottery. 

House Bill 1432 passed easily out of the House Public Policy Committee earlier this year but didn't get a hearing in the Ways and Means Committee, which would've taken a closer look at the financial aspects of the proposal.

Huston called it a complex bill with a "lot of different moving parts." He continued, "And I think, you know, just trying to find something there was some consensus on, felt like it was a pretty tough spot to be."

Rep. Ethan Manning, R-Logansport, authored the bill and estimated that the digital lottery and casino games, coupled with sports wagering tax hikes, could bring the state of Indiana more than $300 million annually in new revenue.

Huston complimented Manning on his stewardship but said the bill would impact members of the gaming industry differently. At least one casino opposed the move.

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

Some were concerned that online options would cannibalize in-person gaming or lottery sales.

The legislation also would have established a new program for responsible gambling and gambling addiction - with new fines on casinos to fund it. Where Indiana's past efforts have focused heavily on awareness campaigns, the new program could've also funded treatment and research.

The Hoosier Lottery, a quasi-public organization, backed online lottery legalization. Indiana would have joined 14 other states with digital lottery games, including Kentucky, Illinois and Michigan.

The lottery said it was needed to grow revenue and player base into the future.

By Niki Kelly