Analysts predict that legal sports betting in Indiana could become one of the largest in the country, as the state became the seventh to permit legal online sports wagering this week. is predicting that the Hoosier State could generate billions of dollars in bets annually, as well as millions in tax revenue for the state for years to come.

“Indiana’s close proximity to Chicago, as well as other relatively large markets such as Cincinnati and Louisville, should help the state punch above its weight class,” stated Dustin Gouker, lead analyst for “As long as Indiana’s neighbours continue to prohibit sports betting, the state should expect huge flows of drive-in traffic.”

Already live with 13 retail sportsbooks, the addition of online sports betting to the region, which saw Rush Street Interactive and French Lick Resort debut the state’s first such offering, could deliver a hugely increased performance.

Those at the news, analysis, and research state that a best-case scenario is to generate approximately $400m in annual revenue from a handle of close to $6bn, as long as neighbouring states, such as Ohio and Kentucky, do not legalise the activity.

This would mark a similar such set-up as the two largest legal sports betting markets in the country, which currently enjoy a similar dynamic. 

Nevada has long relied on drive-in traffic from California to fill its sportsbooks, with New York helping fuel New Jersey’s industry.

Gouker added: “Indiana most closely resembles New Jersey, where the New York City market sits just across its border, helping to propel the Garden State into a neck and neck race with Nevada. If everything goes right for Indiana, it could see remarkable growth, as was the case in New Jersey.”

Furthermore, Indiana’s 9.5 per cent tax rate could also make it more attractive to operators, with the figure subsequently injecting $38m into state coffers should gross revenue hit the $400m mark.

By comparison Pennsylvania’s 36 per cent rate is the highest in the nation, while New Jersey levies 9.75 per cent on revenue from retail sportsbooks and 13 per cent on online sports betting revenue.

“Indiana has set itself up as one of the most operator-friendly legal sports betting markets in the country,” added Kim Yuhl, analyst for “That balance should help both sportsbook operators and the state realise their revenue potential.”