Indiana may soon have online casinos. A bill legalizing internet gaming is presently being processed in the state’s House of Representatives.

However, concerns have been raised by a new report about online casinos in Indiana cannibalizing retail ones.

Significant discrepancies exist between the report and the actual events that have transpired in other states with online casinos. Furthermore, the report presents a contrasting image to another key study that investigated the possibility of cannibalization in Indiana.

There are conflicting reports on the cannibalization of Indiana casinos.

A recent report from Indiana forecasts that the state’s retail industry might be negatively impacted by online casinos. Essentially, it predicts a shift in business from the physical retail sector to the online casino industry.

The report suggests that as much as 30% of the casino industry will transition to online platforms. This is a significant deviation from the findings of Spectrum Gaming Group in their research.

The group responsible for regulating gambling in Indiana, the Indiana Gaming Commission, commissioned a study from Spectrum last year. This was in preparation for a potential move to legalize online casinos in 2025 in the Hoosier State.

The report from Spectrum revealed that introducing online casinos will not harm the retail casino business in the state.

The evidence from states that have introduced iGaming suggests minimal to no revenue loss for established casinos.

The disparities between the state’s report and Spectrum’s study are stark. Therefore, how do they compare to reality? Which one is more accurate?

Do online casinos negatively impact land-based ones?

The truth is that online casinos do not take away business from their physical counterparts. In states where this has already been attempted, both aspects of the business have grown simultaneously.

This phenomenon is perfectly exemplified by Michigan. The state, which borders Indiana to the north, has had online casinos for more than two years. Michigan’s industry is the most comparable model we have for what the proposed casino bill in Indiana could generate.

The numbers for land-based in Michigan have remained stable for the past two years.

The state’s casinos earned $1.29 billion in revenue in 2021, which was marginally more than their revenue of $1.28 billion in 2022.

Since the advent of online casinos, retail casinos have experienced a slight over 1% difference in revenue. This discrepancy can likely be attributed to the usual ebbs and flows of the business and is significantly less than the 30% displacement predicted by a recent report from Indiana.

The reason is that online casinos attract new patrons to the industry instead of poaching them from physical establishments. The truth is, players who gamble online are seeking a different experience than those who visit casinos in person.

New gamblers are drawn to online casinos.

Despite offering the same games, the experience of using an online casino compared to a retail casino varies greatly. This significant difference has enabled states like Michigan to effectively support both aspects of the industry.

An older crowd is typically attracted to traditional casinos.

These mature players possess greater disposable income and usually stay to enjoy numerous other facilities that casinos provide. This encompasses amenities such as bars, restaurants, and entertainment venues.

On the other hand, internet casinos typically draw in younger players. This is also the case for online sports betting.

Generally, younger individuals are more at ease with technology and the concept of online gambling.

Moreover, some gamblers may not reside near any of their state’s terrestrial casinos. For such individuals, the inconvenience of traveling several hours to gamble in person often outweighs the benefit.

A significant benefit of online casinos is their convenience. This is a primary reason why internet gamblers choose to log on.

While there is undeniably some overlap, the convenience of online casinos draws in numerous new gamblers who were not previously betting at physical locations. This allows online casinos to thrive without undermining the brick-and-mortar aspect.

In conclusion, Indiana’s online casinos will not damage the retail industry. Both aspects of the business have been successful in other states, suggesting a similar outcome for Indiana.