LOUISVILLE, Ky., (WDRB and WXIN) -- Sports gambling has boosted Indiana’s tax coffers by $3.7 million since it became legal in September.
People in the Hoosier state have wagered nearly $436 million, resulting in about $41.4 million in taxable revenue. The state collects a 9.5% tax, according to WXIN.
“There's no doubt Indiana is off to a great start from a sports betting perspective,” said Marcus DiNitto, managing editor of BetIndiana News.
DiNitto said the addition of mobile apps has boosted betting revenue.
In the first month of operation, Hoosiers had to place bets in sportsbooks. That resulted in $35.2 million wagered.
By December, a majority of the bets were placed on mobile sports. The total amount wagered that month was $161.8 million.
"We’re seeing mobile becoming an increasingly important part of sports betting in Indiana,” DiNitto said. "When you legalize it, you make it accessible, and you take away the stigma, people are going to bet on sports."
The first four months of betting were anchored by football, which saw more than 40% of the action. Now that football season is coming to a close, DiNitto said basketball will step in.
"Particularly in Indiana, the bigger nut is March Madness, right? It’s a college basketball-crazy state," DiNitto said. "March Madness is a naturally a great betting event so you’re going to see some pretty good numbers for March.”
If the betting stays on pace, Indiana would be on pace to see more than $11 Million added to the general fund in the first year.
State Senator Ron Alting, R-Lafayette, has proposed a bill that would allocate that money for teacher pay increases.
"Will it solve the whole problem for increasing teacher salaries? Obviously not," Alting said. "But it's a start in the right direction.”
However, competition could cut into that revenue. Indiana is one of 13 states where sports gambling is legal, but six other states including border states such as Michigan and Illinois just made it legal. Kentucky, Ohio and more than a dozen other states are expected to take up the issue this year.
Kentucky lawmakers on Wednesday took a step toward legalizing sports betting with a committee voting unanimously to send House Bill 137 to the House floor. The bill is similar to one that fell short during the 2019 legislative session, but it would now allow betting on local college sports such as Louisville and Kentucky games.
Gov. Andy Beshear, a Democrat who campaigned on full casino legalization, encouraged lawmakers to pass sports betting during his State of the Commonwealth address Monday.
DiNitto said that that although Kentuckians and others would not have to come to Indiana anymore for sports betting, the trajectory of the industry in Indiana and elsewhere remains clear.
"There’s only one way it’s going, and it’s up,” he said.
The Indiana Gaming Commission also recently approved a list of prop bets for the Super Bowl that DiNitto said even Nevada sportsbooks can't offer. Some of those bets on the list include the outcome of the coin toss and even the color of the Gatorade poured on the winning coach.
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