Indiana gambling tax revenue hits nine-year high in fiscal year 21-22
Posted on: July 17, 2022, 11:09 a.m.
Last update on: July 17, 2022, 11:23 a.m.
The latest monthly revenue numbers from the Indiana Gaming Commission (IGC) show both good news and bad.
We’ll start with the good. The June figures, released last week, ended the 2021-22 financial year. Not only was the $689 million in tax revenue more than $107 million — or 18.2% — higher than in fiscal year 2020-21, but it was also the best return for the state in nine years, when it raised $752.4 million, according to IGC data. .
This is the first time Indiana has collected more than $600 million in gambling taxes since receiving $602.4 million in 2017-18.
In June, Indiana collected $60.1 million in gambling taxes from 12 licensed commercial casinos. This pushed the total betting tax for the year to $606.1 million.
The $60.1 million tax was based on taxable adjusted gross revenue of $188.7 million for casinos in June.
Hard Rock Northern Indiana, Gary’s land-based casino that opened in May 2021, topped all Indiana casinos with $31.4 million in AGR for the month. Horseshoe Hammond, another site in northwest Indiana, finished second with an AGR of $28.3 million. Horseshoe Indianapolis, a Shelbyville racino, brought in $23 million, and Caesars Southern Indiana ended the month with $19.6 million.
Indiana sports betting handle, tax revenue increase
In addition to the betting tax, which is a progressive tax based on the revenue generated by each casino, Indiana also receives a share of the additional tax, a tax of $3 for each entry which is divided equally between the state, the casino’s host city and its host counties. The state also levies a 9.5% tax on sports betting revenue.
Speaking of sports, Indiana brought in a total handful of $256.3 million from its licensed sportsbooks in June. That’s $10 million more than what was bet in June 2021, according to IGC data.
Compared to May, the handle is down nearly $52 million. That’s expected, though, since the basketball season ended in early June, and the only regular action now is baseball and golf.
While betting was up slightly for the month compared to a year ago, sportsbooks found less money in their pockets. June’s taxable AGR was $15.8 million, down $9.6 million from June 2021. It’s also nearly $14.9 million less than sports bets won in may.
Online betting accounted for 93.1% of the June handful, with FanDuel and DraftKings once again easily the top two books in the state. FanDuel’s online app brought in a handful of $79.4 million and revenue of $5.5 million, while DraftKings took $70.8 million in wagers and won $3.3 million. dollars.
For the year, state sportsbooks took more than $4.43 billion in wagers for fiscal year 21-22. That’s up from the $2.9 billion wagered in 2020-21. While football reigns supreme in most sports betting states, the Hoosiers love their hardwood action. Basketball accounted for $1.29 billion in wagers, according to the IGC.
Parlay bets accounted for an additional $1.16 billion, while Hooser players (and those from neighboring states) placed $776 million in football bets.
Indiana collected $31.2 million in sports betting taxes for the 21-22 fiscal year. That’s a 37.4% increase from the $22.7 million the state received last year.
Casino revenues fall as inflation rises
Now on to the bad news for Indiana. Casino revenue fell for the third consecutive month in June.
The IGC report shows casinos earned $197.2 million last month before free play and other deductions. That’s down nearly 7% from the $211.9 million earned by casinos in May.
The June figure is also down more than 16% from the $235.2 million casinos reported in March.
The three straight declines at casinos in the region come as inflation hits levels the United States has not seen in more than 40 years. The US Bureau of Labor Statistics reported an annual inflation rate of 9.1% for the month of June. It is the highest the country has seen since November 1981.
Inflation has had a significant impact on the prices of food and gasoline as well as other products that consumers regularly need. According to Mastercard SpendingPulse, spending on fuel and convenience products increased by 55.7% in June, compared to June 2019 figures before the pandemic. Grocery spending over the same period increased by 24.8%.