Latest Indiana Sports Betting Proposal Scuttles Mobile Wagering

• SB 552 originally included mobile sports wagering, but the Indiana House has removed that portion of the bill.
• Legal sports betting is poised for approval, and mobile wagering may be reinserted during SB 552’s House hearing.
• The current status of two major IN casinos might impact when and how mobile betting is rolled out.

INDIANAPOLIS – Of the three sports wagering bills floating around in Indiana, Senate Bill 552 has the most legs. The proposal is a sort of gambling amalgam, though in its journey through the Senate, various riders and betting specifics have been axed. One item on the chopping block: mobile sports betting.

First and foremost on Indiana residents’ (and legislators’) minds is sports wagering, which SB 552 addresses in detail. Even with mobile wagering on the outs for now, the bill is a veritable sports betting omnibus.

Outside of sports wagering, the law effectively restructures the Indiana gambling scene.

Not only would SB 552 legalize sports betting, it would also allow a Gary riverboat operator to relocate (for a meager $100 million fee), allow racino table games by 2021, and establish a whole host of gambling tax protocols.

What Happened To Mobile Betting?

As noted, mobile betting has been stripped from the current version of SB 552, which will be debated in the House Ways and Means Committee. The bill passed in the Senate easily, with a vote of 38-11. But Rep. Heath VanNatter (R-38) explains that much of the bulk had to be excised before the House would approve it.

“[The House] didn’t realize how big that bill was going to get and what [the Senate] were going to shove into it. I’m not saying that bill won’t pass, but it’s not going to pass in the current form that it came out of the Senate.”

One of the primary things cut from SB 552 was mobile sports betting, which was removed by House Public Policy Committee Chair Ben Smaltz (R-52).

According to Smaltz, given that there are cities and towns in Indiana that actively voted against having casinos within their borders, mobile betting could violate the peoples’ collective wishes.

“I think that the public has to make the decision on if they want [sports] wagering available throughout the four borders of the state of Indiana. I think the answer to that in a lot of places is probably not.”

Pending Casinos Could Derail Mobile For Now

Another potential (if overlooked) reason that mobile betting might be on the backburner in Indiana is the fact that the state is considering a new casino for Vigo County. This will be put to a public vote in November.

In addition, the Pokagon Band of Potawatomi Indians are still pursuing Class III status for their $400 million tribal casino – the Four Winds – that recently opened in South Bend.

In either case, there are significant unknowns regarding how the state and the voters will proceed. If the Vigo County casino is approved, construction may take a few years. Similarly, it will take time to roll out Class III gaming at the Pokagon Potawatomi venue.

Because of these developments, full-fledged online, mobile sports wagering could eat into the potential offerings at these locales before they (or their casino products) ever launch.

In other states – most notably New York – mobile sports betting is a balancing act. New York legislators specifically withheld mobile betting during this session in order to give their four upstate venues time to establish themselves as local mainstays.

For this purpose, limiting sports betting to existing land-based venues actually helps establish those businesses. Customers become regulars. After that, basic economic theory holds that expansion is less harmful or cannibalistic.

The good news is that this lack of online sports wagering is temporary. Some Indiana legislators even suggest that sports wagering will be put back into the bill once it reaches the House floor. Sen. Jon Ford (R-38) is cautiously optimistic.

“I think it was a big win for the illegal sports wagering market to have mobile pulled out, but I hope to work on that issue as the bill moves forward to get the language back in.

“I think the majority of folks in the House — including some members of House leadership — believe we need to have mobile.”

The bill made it through the House Ways and Means Committee on Tuesday by a 17-6 vote, and will now head to the floor.

News tags: IN SB 552 | Indiana | Indiana sports betting