Indiana lawmakers have moved a step closer to banning online sweepstakes casinos, as a House committee unanimously approved legislation aimed at closing what regulators describe as a long-standing enforcement gap. The proposal places Indiana among a growing number of states acting against sweepstakes-style online casino platforms.
The House Public Policy Committee approved House Bill 1052, which would prohibit online sweepstakes casino operators from offering games in Indiana. Committee chair Rep. Ethan Manning sponsored the bill. Manning has also supported separate efforts to legalise online casino gaming in the state.
Before advancing the bill to the full House, lawmakers adopted amendments that reduced penalties from criminal charges to civil violations and updated the language to reference “multi-currency” systems instead of “dual-currency.” The committee had previously held a longer hearing on the measure earlier this month.
Regulators Push For Clearer Enforcement Authority
During that earlier hearing, Indiana Gaming Commission General Counsel Natalie Huffman said explicit statutory language would allow regulators to act more decisively, including issuing cease-and-desist orders to sweepstakes operators. Some lawmakers briefly discussed whether regulation could replace prohibition, an argument sweepstakes industry representatives have raised at recent national meetings.
The sweepstakes sector promoted regulation rather than bans at the National Council of Legislators from Gaming States winter conference last month. Legislative leaders in Indiana have also signaled openness to legalising regulated iCasino gaming, though no such provision was included in HB 1052.
National Momentum Against Sweepstakes Casinos
Indiana’s action follows a year of heightened scrutiny nationwide. Six states enacted sweepstakes casino bans in 2025, including New Jersey, New York and California. Other states are now considering similar legislation, including Florida and Maryland.
In Louisiana, a proposed ban failed after a gubernatorial veto, though the governor said regulators already held enforcement authority. The Louisiana Gaming Control Board later sent 40 cease-and-desist letters to unregulated gambling sites, including sweepstakes platforms.
Existing Indiana Law Cited As Basis For Ban
Supporters of HB 1052 argue that sweepstakes casinos already violate Indiana law. State regulators point to Indiana Code provisions that prohibit offering casino-style games online and ban “gambling devices,” interpretations supported by court rulings and prior attorney general opinions.
In Jack Eiser Sales Co. v. Wilson, the Indiana Court of Appeals concluded that promotional-style gaming devices could still constitute illegal gambling, stating: “[U]pon playing his ‘free’ game,’ in order to continue to play the machine, the player must risk the prize points that could be redeemed for cash. In other words, he stakes his points on a chance of winning more. Thus, the player gives something of value, or consideration.”
The Indiana Attorney General has also rejected arguments that internet gambling falls outside state law, writing: “It is inescapable . . . that an internet-gambling Hoosier – sitting at her computer, her feet firmly planted on Indiana soil, and her credit-card number close at hand – is doing the things necessary to gamble unlawfully in Indiana.”
Despite those interpretations, regulators argue that clarifying legislation remains necessary. Lawmakers backing HB 1052 say a statutory ban would strengthen enforcement and deter new operators from entering the state.
Source:
“Indiana House committee sends sweepstakes casinos ban forward”, igamingbusiness.com, January 22, 2026
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