IN vs US: Comparison of Sports Bet Markets

How Indiana’s Sports Market Compares to Rest of US

Today, we’re going to take a close look at how Indiana’s market compares to other active markets in the United States. We’ll compare the following features:

1. Regulatory Constraints
2. Retail and Mobile Accessibility
3. Ease of Deposits / Withdrawals
4. Range of Eligible Sports
5. Fairness of Odds

Betting in Indiana From a Regulatory Standpoint

When Indiana’s figureheads were scripting regulations for sports betting, they chose to follow in the footsteps of New Jersey. This was viewed as a brilliant choice. Not only was New Jersey the first to launch a newly regulated (i.e. not Nevada) online sports betting vertical, the state was already home to the largest, most respected iGaming market in the country.

From a legislative stand-point, Indiana’s market includes a lot of landmark features. Most notably, they put the emphasis on a mobile-first market, catering to the largest sector of potential bettors. The state made sure online deposits would be easily accessible. Taxation was kept at a fair price of 9.5%, ensuring considerable benefits to the state, without sacrificing valuable odds for customers.

I’ve heard complaints about Indiana’s choice to limit in-play betting to ‘during commercial breaks only’. While this may be an annoyance to some sports fans, its purpose – to reduce potential problem gambling behavior – is admirable. The same goes for limitations on college athlete prop betting. Some see it as overly restrictive, but its purpose is to preserve the integrity of collegiate sports and athletes. These efforts underscore the responsibility of Indiana legislators to the welfare of their constituents.

IN Retail and Mobile Sportsbook Accessibility

First and foremost, Indiana made certain all interested and eligible bettors would have access to the market. They did this by regulating and licensing both retail and mobile sportsbook products. Eleven of the state’s casinos offer an in-house sportsbook, with as many online sports betting operators licensed for online operation. Not every state chose to include the online route.

Delaware was the first to legalize sports betting after the federal government overturned PASPA, but that state chose to only permit single-event sports wagering, and only in person at the state’s land-based gaming properties. Mississippi, New Mexico, Arkansas, New York, and Montana followed that path as well.

Conversely, Tennessee sports fans have no access to any retail sportsbooks, as the state offers no gambling facilities of any kind – not even tribal casinos. But that didn’t stop Tennessee lawmakers from legalizing mobile sports gambling. The first websites and apps went live July 2019.

Ease of Deposits and Withdrawals

While some states require their betting masses to fund their accounts in person at an associated land-based sportsbook, Indiana gave bettors universal access to their betting accounts. Hoosiers can make a deposit in person or online, with the same accessibility when cashing out their balance. The only limitation is credit/debit card deposits. While most online operators accept them, most banks continue to reject them.

Range of Sports to Bet On

The Indiana Gaming Commission (IGC) thought it best to specify exactly what types of sports can be wagered on. Generally speaking, all professional grade and collegiate level sports are eligible, while high school and eSports (electronic sports / competitive video gaming) are illegal.

One area in which Indiana’s bettors have an advantage is the option to bet on local teams. Some states banned betting on sports teams originating from their respective states. Here, you can bet on everything form the Indiana Pacers to the Perdue Boilermakers. There is a clause, however, in which leagues and colleges have the right to request a “geofence to prohibit wagers at the location of a particular sporting event”. So if you attend a game, you may or may not be able to place a bet on it while you’re there, depending on whether the league/college chose to “geofence” it.

As for what sporting events are expressly eligible for betting in Indiana, the following list is taken directly from the IGC’s List of Approved Sports for Wagering.

• Aussie Rules Football
• Baseball
• Basketball
• Bowling
• Boxing
• Bull Riding
• Cricket
• Cycling
• Darts
• Eating Competitions
• Entertainment (Awards)
• Football
• Golf
• Hockey

• Lacrosse
• Mixed Martial Arts
• Motorsports
• Olympics
• Rowing
• Rugby
• Sailing
• Skiing & Snowboarding
• Soccer
• Softball
• Table Tennis
• Tennis
• Track & Field

Fairness of Odds

There are a lot of factors that impact the fairness of odds pricing from one state to the next. All things considered, Indiana ranks above average in this category. The prices are not extraordinary, but they’re not bad, either.

In order to get the best pricing, a state needs to have 1) a highly competitive market, 2) low license fees and tax rates to attract businesses, and 3) a large customer base.

Competition: Of Indiana’s 14 land-based casinos, 11 have chosen to launch sportsbooks. Of those, 8 have partnered with online sportsbook operators – some even partnered with more than one – bringing an impressive selection of online and mobile sports wagering options to The Hoosier State. Consider that a big bold check-mark in the competition category.

Business Cost: As for fees, Indiana made sure to claim its fair share, but not unreasonably so. Operators are required to pay an initial $100,000 licensing fee to enter the market, plus a $50,000 annual renewal fee. That seems more than fair when you consider the average AGR of each operator was just over $1 million for the month of December 2020 alone. The tax rate of 9.5% on AGR is fair, as well. It’s not as low as Oregon (2.3%) or Nevada (6.75%), but it comes in well below the outrageous tax rates seen in Pennsylvania (34%), Delaware (50%), and New Hampshire (50% retail, 51% online). When sportsbooks save money on taxes, they can pass that savings on to customers by way of more valuable odds.

Customer Base: The market size is admirable in Indiana. It’s no secret that The Hoosier State is home to some of the most loyal sports fan in the nation. With a population of 6.73 million, retail and online operators processed a combined total of $1.7 billion in sports wagers in 2020. That data becomes all the more impressive when you take into consider the fact that, throughout half the year, there were virtually no sports taking place to wager on.