Indiana lawmakers have moved forward on legislation aimed at banning sweepstakes gaming after the House voted overwhelmingly to approve the measure.House Bill 1052 (HB 1052), sponsored by Rep. Ethan Manning, passed with an 87-11 vote and now proceeds to the Senate.
The bill targets online sweepstakes games that use dual-currency or multi-currency payment systems. Amendments added language specifying “multi-currency,” expanding the bill from its original dual-currency focus. HB 1052 also replaced a criminal penalty for violations with a civil fine of $100,000, which can be applied to individuals or operators. The legislation does not penalize affiliates or suppliers.
Senate Support and Broader Provisions
Sen. Ron Alting, added as a sponsor before the bill’s third reading, has expressed support as HB 1052 moves to the Senate. Beyond sweepstakes, the bill introduces new conditions for license revocation and wagering restrictions under the Indiana Horse Racing Commission. It also proposes rules affecting beer and wine sales across the state.
HB 1052 formally defines sweepstakes games in state law, creates civil penalties for operators, and expands the state’s voluntary exclusion program to cover additional gambling activities. It clarifies wagering restrictions at licensed facilities, explicitly including horse racing, and applies penalties to commission members, employees, racing officials, and their spouses. Violations are classified as Class C infractions, with repeat offenses eligible for elevation to a Class A misdemeanor.
Debate Between Regulation and Prohibition
The Indiana Gaming Commission currently does not consider sweepstakes offerings illegal. In committee sessions, some lawmakers debated whether the games should be regulated rather than banned. The commission responded that sending cease-and-desist orders would not be “in good faith, based on current law.”
Rep. Steve Bartels suggested amending HB 1052 to regulate sweepstakes operators, but his proposal failed to gain support, leaving a full online sweepstakes ban in place. Manning’s prior effort, HB 1078, proposed online lottery gaming for residents and visitors age 18 and older but did not advance after being removed from the House floor. Earlier versions also included online casino gaming, which was later dropped.
Opposition and Industry Response
The Social Gaming Leadership Alliance (SGLA) expressed disappointment after HB 1052 passed the House Committee, maintaining that sweepstakes platforms have been operating lawfully. The group proposed a framework that could generate an estimated $20 million in additional revenue from these platforms.
While Indiana advances its legislation, Tennessee lawmakers are also targeting sweepstakes casinos. House Bill 1885 (HB 1885), introduced by Rep. Scott Cepicky, classifies sweepstakes casinos as illegal gambling under the Tennessee Consumer Protection Act of 1977. Operators could face civil penalties of up to $15,000 per violation. The measure defines sweepstakes casinos as operators using virtual currency systems for casino-style games where players can exchange currency for cash or prizes.
HB 1885 follows cease-and-desist letters issued in December by the Tennessee Attorney General to nearly 40 sweepstakes operators, some of whom exited the state or shut down entirely. A companion measure, Senate Bill 2136, was introduced at the same time, though neither has yet appeared in their respective chambers.
Source:
“Indiana Senate to consider sweeps ban after House approval”, sbcamericas.com, February 3, 2026
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