Indiana lawmakers are weighing changes to internet gambling policy, advancing legislation that would allow online lottery ticket sales while separately considering whether to ban online sweepstakes-style casino games. The issues surfaced during recent House Public Policy Committee hearings, revealing disagreement over how gambling laws should evolve.
The committee voted 9-3 to move House Bill 1078 forward, which would permit the Hoosier Lottery to sell tickets online. Lottery officials said the proposal reflects changing consumer habits since the lottery’s launch decades ago.
Jared Bond, external affairs director for the Hoosier Lottery, told lawmakers the current retail-only system no longer matches how residents handle transactions. “When the Hoosier Lottery was created in 1989 … there was really only one way to buy a lottery ticket,” Bond said. “You walked into a retailer with cash, but today Hoosiers utilize their mobile devices for all kinds of different things, like banking and to shop.”
If approved, online sales would likely begin in summer 2027, following vendor selection and the rollout of age and location verification tools. Indiana would join 18 states that already allow digital lottery purchases, including Illinois, Kentucky, and Michigan.
Revenue outlook and concerns
According to the Legislative Services Agency, online lottery sales could add $314 million to $629 million in revenue by the third year. Annual profits, which totaled $340 million in fiscal year 2025, could rise by $31 million to $94 million. Overall ticket sales have remained near $1.7 billion annually for several years.
Some lawmakers objected to advancing the bill without legalizing online casino games. Rep. Cory Criswell, R-Middletown, said, “I strongly feel that i-gaming and i-lottery should be hand in hand, and we’re picking winners and losers. I don’t think that’s the way it should work.”
Lisa Hutcheson of Mental Health America of Indiana warned that online gambling weakens existing safeguards.
Sweepstakes ban under debate
Lawmakers also discussed House Bill 1052, which would prohibit online sweepstakes games that simulate casino-style gambling. The proposal would define sweepstakes games in statute and classify them as illegal gambling.
Indiana Gaming Commission officials said current law limits enforcement. Legislative liaison Nate Friend described sweepstakes casinos as “essentially offering a form of gambling with no regulation, licensing, or taxation.”
General counsel Natalie Huffman added, “Other states think their gambling laws are written in a way that can be used against these online casinos. But I don’t think that the way our gambling laws are written, we can move forward with sending a cease-and-desist letter in good faith, based on current law…The multi-currency model is what allows it to operate outside of our current regulatory scheme.”
Committee chair Rep. Ethan Manning said regulation could amount to legalizing online casinos. “People are going to sweeps because that’s what’s available right now, even though it’s a black or gray market, depending on your perspective,” he said. “But if i-gaming were legal here … there wouldn’t be much market for the sweeps casinos.”
Industry representatives warned a ban could push players to offshore platforms. The committee did not vote on HB 1052, and further debate is expected later in the session.
Source:
“Online lottery bill advances as ban eyed on other internet gambling”, indianacapitalchronicle.com, January 6, 2026
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