Indiana has enacted legislation banning online sweepstakes casino platforms after Gov. Mike Braun signed House Bill 1052 into law. The measure targets internet-based games that use dual- or multi-currency systems, allowing players to exchange virtual currency for cash prizes or equivalents. The law takes effect on July 1, 2026, and authorizes the Indiana Gaming Commission to issue civil penalties of up to $100,000 for operators offering such games to residents.
New Rules Target Dual-Currency Gaming
House Bill 1052 defines sweepstakes gaming platforms as internet-based games that simulate casino or lottery products while using virtual currencies that players can exchange for prizes or cash equivalents.
The law applies to games that resemble common gambling formats, including slot machines, poker, bingo, table games, lottery-style products, and sports wagering. Certain activities remain exempt, including games offered by the state lottery commission and peer-to-peer skill-based poker platforms.
The Indiana Gaming Commission will oversee enforcement of the new rules. Under the statute, the commission can issue civil penalties of up to $100,000 against operators or individuals who knowingly provide these gaming products to Indiana residents.
Earlier versions of the bill included criminal penalties for violations. Lawmakers removed those provisions in a January amendment, replacing them with civil enforcement measures.
Legislative Path and Votes
The bill passed the Indiana House of Representatives 87-11 on February 2, followed by a Senate approval of 37-8 on February 18. Lawmakers convened a conference committee to reconcile minor differences, including amendments tied to tobacco and electronic cigarette wholesalers.
After revisions, the Senate approved the final version 46-4, and the House followed 68-21. Gov. Braun’s signature made Indiana the first state in 2026 to formally ban sweepstakes-style gaming, joining jurisdictions that enacted similar measures in 2025.
Industry Reaction
The Social Gaming Leadership Alliance (SGLA), representing operators of Chumba Casino, Luckyland Slots, Pulsz, Modo Casino, McLuck, HelloMillions, and other “Social Plus” games, opposed the ban.
SGLA Managing Director Sean Ostrow said, “We are disappointed that HB 1052 has become law, but are grateful to the many Indiana lawmakers who engaged thoughtfully on the merits of regulating this long-standing industry. Despite the outcome, the legislative record shows meaningful bipartisan support for a smarter approach that embraces innovation and economic growth. We look forward to continuing to work with Indiana lawmakers on a regulatory framework for digital entertainment that protects the hundreds of thousands of Hoosiers that enjoy Social Plus games, while generating tens of millions in annual tax revenue.”
Broader Legislative Trends
Indiana’s action reflects a growing national effort to restrict sweepstakes-style platforms. Tennessee has advanced legislation placing dual-currency online games under the state’s consumer protection laws, defining violations as unfair or deceptive practices.
Oklahoma has pursued a more stringent approach, amending gambling statutes to include online casino-style sweepstakes games and extending liability to platform hosts, gaming suppliers, promoters, and other service providers. Violations there could be classified as Class C2 felonies, carrying fines from $500 to $2,000 and potential imprisonment.
As these measures gain momentum across multiple states, the regulation of sweepstakes-style gaming continues to be a central topic for lawmakers and industry groups, reflecting both consumer protection and state revenue considerations.
Source:
“Indiana formally bans sweepstakes casinos as Gov. Braun signs bill”, sbcamericas.com, March 13, 2026
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