According to the law legalizing sports betting in Indiana, the sportsbooks have to pay tax to the state. The tax rate is 9.5% of the gross income. When you consider all factors, this rate is friendly. However, in comparison to the tax rate in Nevada, which is at 6.75%, the rate is high. On the other hand, it is significantly lower in comparison to that in Rhode Island and Pennsylvania, who charge 51% and 36%, respectively. The sportsbooks also have to pay an operator fee, which is set at $100,000 with an annual renewal fee of $50,000.