DraftKings Receives Initial Sports Betting Approval In Indiana

The upcoming Indiana online/mobile sports betting market officially just got a little more crowded.

On Monday, the Indiana Gaming Commission updated its list of temporary sports wagering vendor licenses to include DraftKings, which will do business in the state under a partnership with Penn National Gaming and its sports wagering certificate for the Ameristar Casino in East Chicago.

DraftKings joins the likes of Caesars Interactive Entertainment, William Hill, FanDuel, Rush Street Interactive, and Penn Sports Interactive with a temporary vendor license for sports betting.

The Indiana Gaming Commission is set to meet Wednesday to approve emergency rules for sports betting in order to allow the activity to begin Sunday at some casinos. Some of the casinos are expected to have retail wagering ahead of the first NFL game of the season.

Online wagering is expected to begin this fall, though there’s no official timeline.

DraftKings, Penn National deal

DraftKings’ entry into the Hoosier State comes in the wake of a historic market access deal that Penn National inked with several sports betting providers just weeks ago. Indiana law allows each casino in the state to have three “skins” for sports betting.

Under the Penn National market access deal, DraftKings received Penn National’s “third skin” in the state.

According to a Penn National press release, the blockbuster deal also gives PointsBet, The Stars Group, and theScore access to Indiana. Penn National also operates the Hollywood Casino near Cincinnati. None of the aforementioned have received regulatory approval by the IGC yet.

Economic terms of the deals with the various sports betting providers vary. DraftKings will share an undisclosed percentage of its sports betting revenue with Penn National.

In New Jersey, where DraftKings also does business, the company’s platform has expanded into online casino gambling. Indiana hasn’t legalized online slots, table games, or poker — but that could be on the horizon as online/mobile sports betting goes even more mainstream.

Around 85% of the sports betting handle in New Jersey happens over the internet, a percentage that Indiana won’t reach in the near-term but should eventually.