INDIANAPOLIS — Indiana casinos are moving ahead with preparations to begin legalized sports betting in early September, seeking to gain an advantage over competitors in Chicago and other nearby major markets where such wagering is not yet allowed.
A new state law passed this spring allows betting to begin Sept. 1 on dozens of professional, collegiate and international sporting events.
All of Indiana's 13 state-licensed casinos and three off-track betting rooms are preparing for on-site sports betting. Most say they expect to take bets by the time the NFL season begins on Sept. 5. They're also working on launching online betting apps, but those might not be ready until later in the fall.
Caesars Entertainment will have dedicated sports betting areas at its casino in Hammond, near Chicago, at its two casinos near Indianapolis and at its casino near Louisville, Kentucky.
Caesars regional president Dan Nita said the company hopes to gain an advantage with a quick start and attract players to its casino in Hammond before sports betting is available in Illinois, where the Legislature approved it in June.
“There is definitely a first time advantage, we also know that the NFL football season is the most popular sport to bet on,” Nita said. “The timing makes sense for us to get up and running as quickly as possible.”
Sports betting is expected to begin Aug. 15 in Iowa, making it the 11th state to allow sports betting since the U.S. Supreme Court cleared the way in a ruling last year.
Most of Indiana's casinos are clustered along Lake Michigan and the Ohio River, so these operators also have a chance to make inroads with players from Michigan, Ohio and Kentucky, which have yet to legalize sports betting .
Sports betting generally results in small profit margins for casinos. An Indiana legislative report projects that the state will collect only about $13 million a year in revenue from the 9.5 percent tax on casino sports betting profits. That compares with about $430 million in gambling taxes collected over the past year by casinos for slots and table games like blackjack.
Indiana casinos have seen betting shrink over the past decade in the face of increased competition from Illinois, Michigan, Ohio and tribal casinos, so they don't want to lose their sports betting edge.
Boyd Gaming is looking to replicate the success it had in attracting more sportsbook players to its casinos in Mississippi and Pennsylvania when it begins offering the service at Blue Chip Casino near the Indiana-Michigan border and Belterra Casino on the River Ohio near Cincinnati.
“We hope it will attract customers from all markets of these properties, including Michigan and Kentucky,” said Boyd Gaming spokesman David Strow.
The Indiana Gaming Commission is expected to vote Aug. 28 on whether to approve its proposed sports betting regulations. The agency has already granted temporary licenses for three off-track betting sites and 10 casinos, with operators of Indiana's other three casinos saying they also expect to have sports books operating by early September.
Indiana law and regulations will allow sports betting by anyone 21 years of age or older at a casino or from mobile devices after a player has registered with a casino in the state. These online apps, however, are only allowed to operate within state borders, meaning any Chicago resident would have to cross into Indiana every time they want to bet using their mobile phone.
Indiana casino companies have not set dates for when mobile betting will begin.
This step is expected to give a significant boost to sports betting, as the gambling commission predicts that at least two-thirds of bets will eventually be placed online or via smartphone. This number could be even higher as 80% of sports bets in New Jersey are placed this way.
“The timing really depends on the operators,” said the commission's executive director, Sara Gonso Tait.
