Spectrum Unveils Results of Recent Study on Potential iGaming Market in Indiana
The Indiana Gaming Commission is evaluating the potential of iGaming legalization in the state. To understand the perspectives, the regulator teamed up with Spectrum Gaming Group in 2022 to conduct a corresponding study. In 2023, the IGC requested an update from the consultancy company, and now the recent results of the research are available.
At present, there are eight jurisdictions across the US where iGaming is legal. The most successful states are New Jersey, Michigan and Pennsylvania: each of them generate the annual gross gaming revenue (GGR) of $1.6 billion or more. Spectrum considers Indiana, with a population of approximately 6.8 million, a promising iGaming market, comparable with the trio mentioned.
According to Spectrum’s revenue projections for a three-year period, Indiana is able to generate $489 million of iGaming revenue in only twelve months after legalization. The following year is expected to bring $696 million in revenue, while through the third one the market may generate $880 million. Summing up, a total revenue for three years is expected to reach $2 billion.
Considering a huge potential of iGaming revenue, the prediction for tax receipts is also positive: with a rate of 20% Indiana may collect $82 million in the first year of work of the legal market. As for the following two years, they could potentially bring $126 million and $165 million in taxes.
In case of a higher tax rate, 45%, the estimated receipts could reach $286 million in the first year, $340 million in the second one, and $420 million in the third one. It means that a total tax sum collected by Indiana over the entire three-year period could reach $1 billion.
Spectrum predicts that iGaming could also create more jobs, first of all — via land-based studios, where live dealers work. Meanwhile, the consultancy company doesn’t think that iGaming will negatively impact the ability of brick-and-mortar casinos to maintain a workforce.
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