Indiana continues to stand out as one of the fastest-growing gambling markets in the U.S., with online sports betting revenues surpassing $30 million per month in 2024. Since the legalization of sports betting in 2019, the state has built a thriving ecosystem that includes state lotteries, riverboat and land-based casinos, racinos, and retail and online sportsbooks.

House Bill 1432, introduced in 2025, aimed to legalize online casinos and iLottery, though it stalled in committee. Meanwhile, Senate Bill 43, approved by the Senate, could enable casino relocations to boost tourism and tax revenues, signaling continued legislative momentum toward a more liberalized iGaming market.

Key Licensing Requirements:

Sports Wagering Vendor Licence: To legally offer mobile sports betting, online sportsbook operators must obtain a Sports Wagering Vendor Licence (SWV) from the Indiana Gaming Commission (IGC). Before applying, applicants must secure a formal partnership with a licensed land-based casino or racino. The IGC conducts a thorough background investigation to assess financial stability and compliance. All required fees must be submitted.

Geolocation Compliance: All online sports wagers must be placed within Indiana state lines. Operators are required to implement stable geolocation technologies to ensure compliance and prevent out-of-state betting activities.

Responsible Gaming Requirements: Under 68 IAC 27-13-1, licensed operators must display a responsible gaming logo linking to a dedicated page, provide access to self-exclusion programs, feature a helpline message, and include links to IndianaGamblingHelp.com and other IGC-designated resources.

Data Security and Server Location: Indiana law mandates that sports wagering operators must physically locate their servers within the state to ensure regulatory oversight and compliance with state gaming laws  (68 IAC 27-6-2). 

Certified Platform Standards: To ensure fairness and security, operators must use platforms and systems certified by an independent testing laboratory approved by the IGC.

Advertising and Marketing Compliance: Indiana’s advertising standards, which focus on transparency and responsible gambling, must be followed in all promotional activities. 

Distinctive Aspects of Indiana's Regulatory Framework:

Limit on Online Skins: Each licensed casino or racetrack in Indiana can partner with up to three individually branded online sportsbook platforms, commonly referred to as ‘skins’. This provision allows for a diverse market while maintaining regulatory oversight.

Taxation and Fees: Indiana imposes a tax rate of 9.5% on adjusted gross receipts from sports wagering activities. If a sports wagering certificate holder (casino/racino) uses a vendor to conduct sports betting, they must include in their internal controls a description of how revenue will be reported to the certificate holder and how the certificate holder will remit taxes as required by the law.

To launch operations, sportsbook operators must obtain a Sports Wagering Vendor License from the Indiana Gaming Commission, pay a $100,000 application fee and $50,000 annual renewal fee, partner with a licensed casino or racetrack, and comply with geolocation, responsible gaming, and advertising regulations.

Indiana’s balanced regulatory framework, competitive 9.5% tax rate, and enthusiastic player base make it an attractive destination for ambitious iGaming operators looking to establish a strong Midwest presence.

Read full article here