Analysts are predicting that legal sports betting in Indiana could become one of the country’s largest, as this week the state became the seventh to allow legal electronic sports to wager.
PlayIndiana.com estimates that the Hoosier State will be able to generate billions of dollars in annual bets as well as millions in tax revenue for the state over the coming years.
“Indiana’s close proximity to Chicago, as well as other relatively large markets such as Cincinnati and Louisville, should help the state punch above its weight class,” stated Dustin Gouker, lead analyst for PlayIndiana.com. “As long as Indiana’s neighbours continue to prohibit sports betting, the state should expect huge flows of drive-in traffic.”
Now live with 13 retail sportsbooks, introducing digital sports betting to the area that saw Rush Street Interactive and French Lick Resort launch the first such service from the state would produce a significantly increased performance.
Those in the media, commentary, and study report have said that a best-case scenario is to produce around $400 million in annual revenue from a handle of approximately $6 billion, as long as neighbouring states like Ohio and Kentucky do not legalise the operation.
This would represent a similar set-up as the country’s two main legal sports betting markets, which are currently experiencing a similar dynamic.
Nevada has long relied on California drive-in traffic to fill its sportsbooks, helping New York power the industry of New Jersey.
Gouker added: “Indiana most closely resembles New Jersey, where the New York City market sits just across its border, helping to propel the Garden State into a neck and neck race with Nevada. If everything goes right for Indiana, it could see remarkable growth, as was the case in New Jersey.”
In turn, Indiana’s 9.5% tax rate might also make it more attractive for businesses, with the amount eventually injecting $38 m into state coffers would reach the $400 m mark in gross revenue.
By contrast, Pennsylvania’s 36% limit is the nation’s highest, while New Jersey levies 9.75% on retail sportsbook revenue and 13% on on online sports betting revenue.
“Indiana has set itself up as one of the most operator-friendly legal sports betting markets in the country,” added Kim Yuhl, analyst for PlayIndiana.com. “That balance should help both sportsbook operators and the state realise their revenue potential.”