An Indiana proposal that would have allowed the Hoosier Lottery to sell tickets online and offer digital instant games will not move forward this legislative session, after lawmakers concluded the measure lacked sufficient support.
House Bill 1078 advanced out of committee earlier in January but was later removed from the House calendar and never brought to a full vote. House Public Policy Committee Chair Ethan Manning confirmed the bill is effectively dead for the year.
“It didn’t have enough support, really, from either caucus on the concept,”Manning said. “I don’t think I could have changed one word in the bill to gain any more votes. It’s just the idea itself. We’re clearly not ready, as a Legislature, to move any further on any forms of online gambling.”
Revenue Estimates And Lottery Performance
The legislation would have permitted the Hoosier Lottery to sell tickets digitally and host online instant games, with participation limited to users aged 18 and older. It also would have banned digital lottery courier services and required the state to create a voluntary exclusion program.
An analysis of the bill projected that online lottery sales could increase revenue by between $314 million and $629 million in the third year. That growth was expected to raise annual lottery profits by $31 million to $94 million, above the $340 million reported in fiscal year 2025. Overall lottery sales have remained steady at roughly $1.7 billion annually over the past five years.
Manning said the proposal offered a rare opportunity to increase state revenue without adjusting tax rates.
Lottery officials supported the measure, noting that 18 states already allow online lottery sales, including Illinois, Kentucky, and Michigan. A Hoosier Lottery spokesperson did not respond to a request for comment following the bill’s withdrawal.
Gambling Concerns Shape Opposition
Resistance to HB 1078 echoed objections raised during previous sessions. In 2025, Manning’s committee backed a broader proposal that included both online lottery and internet casino gaming, but that measure stalled before reaching the House floor. Although this year’s bill excluded online casino provisions, lawmakers voiced ongoing concerns about gambling addiction and potential effects on retail casinos.
Manning said Indiana’s early move into sports betting has made lawmakers cautious about expanding online gambling further.
“Sports wagering, having gone so early and Indiana being one of the earliest states to do that, I think that’s hurt our argument for further forms of online gaming, because a lot of members don’t like the impacts,” he said. “They don’t like seeing the advertisements and those sorts of things.”
Amendments And Next Steps
Efforts to add online casino language back into the bill were rejected on procedural grounds, after legislative leaders ruled the amendments were not germane. One amendment that did pass would have created retailer incentives and required annual reviews of whether digital sales reduced in-store lottery purchases.
Despite clearing committee stages, the bill was pulled less than two months after Indiana launched its sports betting market on Dec. 1.
For now, Indiana will not join states expanding online lottery access. Massachusetts, by contrast, is expected to begin iLottery sales this year after approving legalization in late 2024.
Source:
“Bill allowing Hoosier Lottery online sales won’t win in Legislature this year”, yahoo.com, January 22, 2026
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