Indiana legislators have moved closer to prohibiting online sweepstakes casinos after the state Senate approved an amended version of House Bill 1052. The proposal, which previously cleared the House, now returns there after senators introduced changes requiring further consideration.
The House passed HB 1052 by an 87-11 vote on Feb. 2. The Senate followed on Feb. 18, approving it 37-8 with amendments. Because of those revisions, House members declined to concur and filed a motion to dissent, sending the legislation to a conference committee. Lawmakers must act quickly, as the session ends Feb. 27.
Definition and Scope of the Ban
The bill would define a “sweepstakes game”as any online game, contest or promotion using a “dual-currency or multi-currency system of payment” that allows players to exchange real money for a chance to win cash or a cash equivalent. The House expanded earlier language to include multi-currency systems.
Platforms that mirror slot machines, video poker, table games, bingo, lottery games and sports betting would fall under the prohibition. Games run by the state lottery commission remain exempt. Senators also added an exception for peer-to-peer skill-based poker.
Regulators could issue civil fines of up to $100,000 per violation against operators offering sweepstakes games in Indiana. The measure would also apply to out-of-state companies serving Indiana residents. Earlier drafts proposed criminal penalties, but lawmakers revised them to civil sanctions.
Debate Over Regulation Versus Prohibition
During committee hearings, some lawmakers discussed shifting from a ban to a regulatory framework that would tax and oversee sweepstakes operators. The Social Gaming Leadership Alliance and companies such as VGW expressed support for regulation rather than prohibition.
At a January hearing, SGLA Managing Director Sean Ostrow said: “Rather than a ban that would criminalize law-abiding businesses while doing nothing to stop illegal operators, we believe sensible regulation is the pragmatic pathway forward.”
Despite those discussions, the legislature advanced the prohibition model. Sen. Ron Alting, the bill’s sponsor in the Senate, acknowledged he received significant opposition when exploring regulatory alternatives.
Enforcement Authority and Legal Standing
The Indiana Gaming Commission testified in favor of the bill. Representatives told lawmakers that, under existing statutes, sweepstakes casinos and sportsbooks do not clearly violate state law. As a result, the agency indicated it lacked authority to issue cease-and-desist orders.
IGC representatives said they could not act against operators “in good faith, based on current law.” A statutory ban would provide clearer legal grounds for enforcement.
Rep. Ethan Manning, the bill’s House author, addressed the current legal status during a hearing. “They’re not breaking any current laws, but if we don’t pass the prohibition, then we’re effectively saying we’re okay with the sweepstakes casinos continuing to operate as they are today, even though this legislature has been unable to pass iGaming and make that policy statement,” he said.
If lawmakers reconcile the bill and send it to Gov. Mike Braun for approval, the ban would take effect July 1, 2026. Indiana would then join a small group of states moving to explicitly prohibit sweepstakes casinos.
Source:
“Indiana close to banning sweepstakes after Senate approves House bill”, sbcamericas.com, February 18, 2026
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