Indiana is one step closer to a complete ban on sweepstakes casinos. Lawmakers in the state have passed HB 1052, a wide-ranging administrative bill that includes an explicit ban on dual-currency sweepstakes casinos. The measure cleared its final hurdle on February 26 after both chambers adopted a conference committee report, with the Senate voting 46–4 and the House approving it 68–21.
The bill now heads to Governor Mike Braun (R), who has seven days to sign it, veto it, or allow it to become law without his signature. The ban will go into effect on July 1, 2026.
What the Bill Actually Does
HB 1052 adds a new section to Indiana law that defines and prohibits online sweepstakes-style casino games. In the bill, a prohibited sweepstakes game is defined as any game, contest, or promotion that meets the following criteria: “is available on the Internet, is accessible on a mobile phone, computer terminal, or similar access device.”
The bill then adds that a defining feature of a sweepstakes game is its use of a dual- or multi-currency payment system that allows players to exchange virtual credits or tokens for cash or cash equivalents, or for the chance to win them.
Games covered by the statute include those that simulate lottery products or casino-style gaming, such as slots, video poker, table games, bingo, or sports wagering. Peer-to-peer skill-based poker games and the state’s lottery aren’t included in the ban.
Under the bill, the Indiana Gaming Commission has the authority to impose civil penalties of up to $100,000 on operators or individuals who knowingly offer sweepstakes games to Indiana residents, including out-of-state platforms that do business with players located in the state.
Debate Over Regulation Versus Prohibition
Looking strictly at the vote, it appears there was widespread bipartisan support among lawmakers for banning sweepstakes casinos. However, as the bill advanced through the Indiana legislature, comments from a couple of senators during a February 11 hearing of the Senate Public Policy Committee showed there was at least some interest in regulating and taxing sweepstakes casinos rather than imposing an outright ban.
Sen. Ron Alting (R) said he had explored an amendment to regulate and tax sweepstakes casinos, but abandoned the effort after strong resistance from leadership in both chambers.
“Let me just say, I offered the amendment for the sweepstakes, which regulated and taxed it that I thought would be appropriate, but got a tremendous amount of feedback of ‘no go,’ particularly with leadership with both chambers as well,” Alting said.
Sen. David Niezgodski (D) echoed that sentiment while still voting in favor of the bill.
“I, too, would have very much liked to see that amendment that you wanted to offer,” he said. “I’m not gonna vote no on the bill, I’m gonna vote yes on the bill, but I hope we can have some further conversations on that.”
The senators’ remarks have become a familiar thread in debates over sweepstakes casinos nationwide: lawmakers acknowledging potential tax and consumer-protection benefits while ultimately choosing prohibition.
Industry Warns Bans Could Push Players Offshore
Indiana’s move to ban sweepstakes casinos comes after a busy 2025, when six states enacted laws severely restricting or banning the dual-currency platforms. Many industry leaders have cautioned that these bans could have unintended consequences for states, including redirecting demand rather than eliminating it.
During an interview with CasinoBeats on February 17, ARB Interactive CEO Patrick Fechtmeyer warned that bans risk pushing players to offshore platforms beyond the reach of state regulators.
“It’s not really a question of, ‘We ban this industry, and it’s going to go away,’” Fechtmeyer said. “It’s, ‘Where does that money shift to? How do you capture that?’”
For the time being, Indiana lawmakers have chosen clear prohibition over regulation. However, comments from some senators suggest that the debate over regulation may not be fully settled.
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Indiana is one step closer to a complete ban on sweepstakes casinos. Lawmakers in the state have passed HB 1052, a wide-ranging administrative bill that includes an explicit ban on dual-currency sweepstakes casinos. The measure cleared its final hurdle on February 26 after both chambers adopted a conference committee report, with the Senate voting 46–4
The post Indiana Legislature Passes Sweepstakes Casino Ban, Sending Bill to Governor for Signature appeared first on CasinoBeats.