Interactive
US – Online to make Indiana one of the largest betting markets in the US
By Phil - 4 October 2019
Indiana’s legal sports betting market could become one of the largest in the country, generating billions of dollars in bets annually and millions in tax revenue for the state for years to come, according to analysts from PlayIndiana.com.
DraftKings Sportsbook and BetRivers Sportsbook went live first with their mobile sports betting apps on October 3, 2019, but several more are expected to launch in the coming days, including: FanDuel Sportsbook, Caesars Sportsbook, William Hill Sportsbook and Fox Bet.
Rush Street Interactive (RSI) through its partnership with historic French Lick Resort, launched the Hoosier State’s first licensed online and mobile sportsbook, BetRivers.com, on October 3, 2019.
Richard Schwartz, President of Rush Street Interactive, said: “We know our players are really going to appreciate the convenience of being able to place wagers online anywhere in Indiana, adding to the excitement of these sporting events. Our experience and success in New Jersey, Pennsylvania and New York allows us to zero-in on what players want – a massive range of sports betting options, through reliable and scalable technology, with responsive customer service, and fast payouts.”
Types of bets include, but are not limited to, straight bets, parlays, totals, prop bets and in-game betting.
“We are excited to make history in the state of Indiana,” said Mr. Schwartz. “As a Chicago-based business and affiliate of the trusted and market leading Rivers Casino in Illinois, we are proud to expand our trust into Indiana. We are thankful for the Indiana Gaming Commission giving Rush Street Interactive their vote of confidence and authorizing us to launch online sports betting in the state. We look forward to working together with French Lick to continue our great partnership.”
Indiana became the seventh state to allow the launch of legal online sports betting, but few of its predecessors have had as much potential as a sports betting market. Already with 13 retail sportsbooks, the addition of online sports betting to Indiana could mean that the state’s best-case scenario is to generate nearly $400m in annual revenue from a handle of close to $6bn if neighbouring states such as Ohio and Kentucky do not legalise sports betting.
“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,” said Dustin Gouker, lead analyst for PlayIndiana.com. “As long as Indiana’s neighbors continue to prohibit sports betting, the state should expect huge flows of drive-in traffic.”
The two largest legal sports betting markets in the country enjoy a similar dynamic. Nevada has long relied on drive-in traffic from California to fill its sportsbooks. And New York helps fuel New Jersey’s sports betting industry, which has accepted $3.8 billion in bets since launching in June 2018.
“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,” Mr. Gouker said. “If everything goes right for Indiana, it could see remarkable growth, as was the case in New Jersey.”
Such growth would be a boost to Indiana’s state budget. With a tax rate of 9.5 per cent, $400m in gross revenue for the sportsbooks would inject $38m into state coffers.
Indiana’s 9.5 per cent rate could also make it more attractive to operators.
By comparison, Pennsylvania levies a 36 per cent rate, the highest in the nation. New Jersey levies a 9.75 per cent tax on revenue from retail sportsbooks and 13 per cent on online sports betting revenue.
“Indiana has set itself up as one of the most operator-friendly legal sports betting markets in the country,” said Kim Yuhl, analyst for PlayIndiana.com. “That balance should help both sportsbook operators and the state realise their revenue potential.”
