Indiana tax revenue generated by Hoosiers gambling exceeded $1 billion during the 2022 state budget year for the first time in a decade, recently released data show.
Altogether, state government reaped $1.04 billion from gambling-related revenue streams between July 1, 2021, and June 30, 2022 — an 8% increase from the $958.3 million in gambling taxes collected by Indiana during its 2021 budget year.
An upswing in casino wagering tax receipts largely was responsible for Indiana breaking the $1 billion mark for total gambling revenue.
According to the Indiana Gaming Commission, the two state taxes levied on the $2.5 billion in casino “win,” or earnings after paying off successful slot machine and table game bets, generated $660.2 million for Indiana during the 12-month period.
That was $100 million, or 17.9%, more revenue than Indiana collected from its wagering tax and supplemental wagering tax during the 2021 budget year, which included several months of casino operating restrictions amid the COVID-19 pandemic.
The 2022 Indiana wagering tax haul also was $242 million, or 57.8%, greater than 2020 when Indiana’s casinos were completely shut down from March 16 until June 15 to try to minimize the spread of the coronavirus prior to the availability of the COVID-19 vaccine.
Sports wagering, which was legalized in Indiana in September 2019, produced another $31.2 million in revenue for Indiana during the 2022 budget year, records show.
While an incredible $4.5 billion was bet last year in the Hoosier State on college and professional sporting events held in the United States and around the world, Indiana only levies its 9.5% sports wagering tax on the comparatively minimal casino earnings from settled bets as casinos tend to set sports wagering odds to try to ensure nearly equal action on both sides of all wagers.
The remaining large chunk of Indiana gambling revenue came from the $344.4 million generated by the Hoosier Lottery after paying off lottery winners and its expenses, including an $18.4 million bonus for IGT Indiana, which runs lottery operations and marketing, after it again exceeded its yearly earnings target.
Indiana also collected about $2 million dollars in 2022 from a variety of minor taxes assessed on charity gaming activities and horse racing, records show.
The last time Indiana topped $1 billion in gambling-related revenue was during the 2012 budget year, which ended a seven-year streak of more than $1 billion in gambling tax collections annually going to the state’s bottom line.
At that time, higher casino tax rates routinely brought in more than $800 million a year for state needs, while the earnings from a pre-privatization Hoosier Lottery contributed about $200 million a year.
Data show Indiana’s General Fund tax collections totalled $21.2 billion during the 2022 budget year, with the $1.04 billion from gambling comprising about 5% of the state’s primary spending account.
Source: NWI Times
Preview image: Licence Free Pixabay 1872528 1280
Source: Read Full Article