Legal Indiana Sports Betting - IN Betting Laws & Regulations 2022

Indiana sports betting has been around for a few years now and with sports betting in Indiana allowing for betting in casinos and online gambling, it’s important to know what you can and can’t bet on, the taxable income, the betting restrictions in Indiana and the current state of play.

On this page, we will detail everything you need to know about Indiana sports betting and how we got to where we are today with sports betting in Indiana.


Sports Betting In Indiana - The History of Betting in Indiana

Sports betting in Indiana hasn’t always been a possibility and with the sports betting industry in the USA taking off in the last few years, we finally have something to shout about with Indiana sports betting.

170 years ago, the Indiana Constitution included a ban on lotteries, which pretty much ended any hopes of gambling freely in the state, as this was understood by the courts as a prohibition on gambling in general in Indiana. In 1988, however, voters within the state approved a constitutional amendment which lifted the 1851 lottery ban, which then allowed for the establishment of the Hoosier Lottery.

In 1989, pari-mutuel betting was legalized, which is a betting system in which all bets of a particular type are placed together in a pool and this was the first time Indiana saw gambling appeal more to those who just wanted a lottery ticket, and not long after, in 1995, off-track betting parlors opened in the state of Indiana. 13 years on and the Hoosier Park which opened in 1994 became a racino, which then forced the Indiana Downs to do the same in 2009.

By 2003, legislators authorized an 11th casino to be built in the state, and by 2007, a law passed which allowed the state's two racetracks, Hoosier Park and Indiana Downs, to install up to 2,000 slot machines each. Things changed drastically in 2015, however, when the state's riverboat casinos moved for the first time into land-based facilities to help remain competitive with other states' growth into gambling, and by 2019, sports betting was legal in the state of Indiana.


Betting Tax in Indiana

Gambling winnings in Indiana are taxable and full-year Indiana residents pay tax on all of their gambling winnings, which also includes winnings from riverboats and pari-mutuel horse races - this also includes winnings from out-of-state sources. Elsewhere, non-residents pay tax to Indiana on gambling winnings from Indiana's pari-mutuel horse racing tracks and riverboats. Gambling winnings are also taxed from Indiana's lotteries, such as Hoosier Lotto and Lucky 5, whether won by full-year residents or non-residents. You can see the Indiana Lottery Winnings Deduction in the IT-40 or IT-40PNR instruction booklets.

However, with sports betting legal in Indiana, there are plenty of people within the state betting on professional and college teams and your parlay on Notre Dame football and Purdue football games is also taxable income if it goes above $600 in total winnings. It will not matter if you placed a wager with a sportsbook in Indiana, inside a casino or through online gambling in Indiana, or through any form of Indiana sports betting, as the sportsbook you placed with will send you a W-26 form to report your winnings and withholdings to the IRS and the state. It's also important to know your specific tax bracket to avoid the wrong payment, as the highest federal tax rate is currently 35%, and that is in addition to the 3.23% you owe the state of Indiana from a sportsbook win.

Of course, taxes are inevitable in the state, but there’s still a lot of fun to be had when betting and the winnings are still plentiful and all yours, minus the small taxed income.

Betting Restrictions in Indiana

There are a few restrictions to be aware of when sports betting in Indiana. Firstly, you cannot place a bet while watching or playing golf with your friends, for example. You can, however, wager on yourself and your performance on the course, but it would actually be illegal to wager on the performance of someone else, even if this person is on the round with you. 

It is also illegal to sell gambling devices like slot machines in the state of Indiana. You may, however, possess an antique slot machine for your collection, which, of course, you can buy as it is an antique. However, a slot machine antique is defined as a slot machine that is at least 40 years old and is used for historic, nostalgic or decorative purposes only, and they simply cannot be used for profit. 

It is also illegal to wager on dog or cockfighting in line with the animal cruelty laws in the state.

The usual rules apply to those associated with college or professional teams and the agreements they sign which prevents them from betting on the industry they work in, and you must be 21 years old when betting in the state of Indiana.

Indiana is one of the states whose journey to legalize online sports betting started a long time ago. The state authorized different forms of gambling in 2019, including online sportsbooks. That said, Indiana remains one of the viable regions in America where you can comfortably place online bets. 

Any gambler who resides within the borders of Indiana has complete access to sportsbooks like FanDuel, BetMGM, Unibet, and William Hill. Other brands operating in the region include theScore, DraftKings, and BetRivers. Indiana Daily Fantasy Sports regulate each sportsbook. The body ensures every gambling activity is fair and services provided by sports betting sites are safe for gamblers.

Top 15 bookies for Indiana

Current State of Play

Indeed it was 2019 when the Indiana legislature legalized sports betting from September of that year, and ever since, racinos, off-track betting facilities and casinos have all been eligible for sports betting in Indiana, which now also allows for online gambing in Indiana. However, it is important to note what sportsbooks in Indiana are available.

Ever since the wagering of sports betting in Indiana was allowed in, only professional sports and college sports have been allowed to be used on sportsbooks in Indiana. This means you can bet on professional teams like the Indianapolis Indians (baseball), Indianapolis Colts (football), Indy Eleven (soccer) and the Indiana Pacers (basketball) with Indiana sports betting. There are also numerous college sports to bet on too with Indiana sports betting, such as the Ball State Cardinals, the Indiana State Sycamores, the Indiana Hoosiers and the Purdue Boilermakers.

This doesn't mean you're restricted to just betting on strictly Indiana sports betting, as almost any sport is legal at sportsbooks in Indiana and there are a number ways to use online gambling in Indiana, such as DraftKings, William Hill, BetMGM and Unibet.

Now, with sportsbooks needing to partner with land-based entities in order to showcase Indiana sports betting, 15 casinos now have sportsbooks in Indiana, with the likes of Harrah's Hoosier Park offering Caesars Sports and Blue Belterra Casino Resort offering FanDuel. Indeed, statewide mobile wagering is allowed, and you can register for an Indiana sportsbook app anywhere in the state as long as you're over 21 years of age and in the state, although there can be no wagering on esports or amateur athletes under the age of 18. Finally, limits on the in-play betting are left to the discretion of the Indiana Gaming Commision, as is the restriction on data sources.

Most Popular Bets In Indiana

We have so much for choice with Indiana betting through sportsbooks in Indiana, as there are plenty of teams, sports and events to bet on. Indiana has a proud basketball heritage and as of 2013, the state has produced more NBA players per capita than any other state, and with the Indiana Pacers representing the Hoosier State, those over 21 years of age can bet on the state’s NBA side.

Indiana is also home to the Indianapolis Colts, who regularly compete for the NFL playoffs and are one of the biggest NFL franchises across the country. Alongside this, soccer has also taken off in the Hoosier State, with Indy Eleven competing in the USL Championship, which is the professional top division of the United Soccer League and the second tier of soccer behind the MLS. In total, there are 11 professional sports teams in the state, three National Collegiate Athletic Association collegiate teams, and two teams from the four major American leagues, all four of which Indiana sports betting allows you to bet on.

Indiana sports betting also allows you to bet on the most famous and prestigious race of all at the Indianapolis Motor Speedway: the Indianapolis 500. The Indy 500 is the world's most attended sporting event that is hosted on a single day, and through sportsbooks in Indiana and online gambling in Indiana, you are able to get involved with the state's biggest event, even if you can’t be a part of the thousands in attendance.

Are Betting Losses in Indiana Tax Deductible?

The positive side of the taxable income for Indiana sports betting is that it's just like any other form of gambling where the money you lose on Indiana sports betting can be deductible if you choose to itemize. So yes, the IRS does allow for a deduction for gambling losses, but it cannot be claimed if you take a standard deduction on your winning returns. Although, for those who itemize, gambling losses will go on Line 28 of Schedule A, Form 1040 and you simply cannot claim a deduction larger than your winnings.

Also, you must prove your losses and you can't just deposit more than you withdraw from your bank account as evidence, as this is not deemed as sufficient evidence for a deductible expense. You also cannot deduct expenses that happen along the way of your gambling loss, such as staying in a casino hotel where you have to pay for a room and meals, as these are simply part of your own optional expenses, rather than a must-have when it comes to Indiana gambling and online gambling in Indiana.

If you do, however, opt to itemize and claim losses on gambling, you will need to keep track of your credit card records, wagering tickets, how much you have lost and won, where the bet has been placed along with the name of the casino and the date and type of wager.

Conclusion to our guide on sports betting in Indiana

It’s important to note all of the above when it comes to Indiana sports betting and Indiana gambling, as there are clear restrictions in which everyone within the state needs to be aware of and those who want to bet on Indiana sports outside of the state, too. Remember, unless you're 21 years of age or over, it is illegal to bet on sports in the state of Indiana and you can bet on sports both online and in casinos in the state, whilst there is a taxable income to note, too.

None of this takes away any of the fun for bettors, though, as the sports in the Hoosier State happen throughout the year and as long as it is professional or college, we can take part as well!

FAQs About Betting In Indiana

Who is in charge of sports betting in Indiana?

This is all down to the Indiana Gaming Commision who takes primary responsibility for regulating all sports betting activity across the state of Indiana. It doesn't matter whether you're betting through an app, a casino or an online sportsbook, as the Indiana Gaming Commission are the ones that assume primary responsibility.

Is online sports betting legal in Indiana?

Yes, online sports betting is legal in Indiana. As a result, you can place different sports bets in the comfort of your home. You can also enjoy bonuses from sportsbooks and access to a wide range of markets. 

What sports can I bet on in Indiana?

Indiana allows you to bet on different sports, including Baseball, American Football, Basketball, and Tennis. You can also bet on college teams based in Indiana without any restrictions. 

Who can bet on sports in Indiana?

Like many other regions in the United States of America, you must be 21 years and over to place sports bets. Every sportsbook is tasked to ensure its clients are 21 years and older to avoid being penalized by the state government. 

Who can get a sports betting license in Indiana?

A company or an individual interested in running an online gambling website can get a sports betting license. The same applies to individuals interested in working at specific sections of the online betting firms.

Where can I bet on sports in Indiana and is it available online?

Since September 2019, sports betting in Indiana has been able to take place in off-track betting facilities, racinos, racetracks and casinos. All licensed casinos in the Hoosier State can apply for a license which allows them to operate a sportsbook, and each casino then has an option to partner with a sports betting operator to help in their mobile sportsbooks and their physical sportsbooks. Since October 2019, mobile sports betting has been available throughout the state. 

Can I bet on sports in Indiana from outside the state?

Yes and no. If you're able to travel into the state of Indiana, then yes, you can bet on the sport in the state as much as you want that is offered by the sportsbooks under the Indiana Gaming Commision's license. You can't, however, place a bet outside of Indiana on sport in the state, and you must simply be within the state to do so. For example, if you're in neighbouring states like Ohio, Illinois and Kentucky, you must then travel into the state to place a bet. You can, however, download an app and deposit while in one of these states, but only once you're in the state's borders can you place that wager.

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