Indiana moved a big step closer to explicitly banning sweepstakes casinos this week as the state Senate approved a bill that has already passed the House.
Rep. Ethan Manning’s House Bill 1052 is an omnibus bill that is much more than a sweeps ban, but its most significant gambling provision is that it would prohibit sweepstakes casinos and impose six-figure civil penalties for violations.
After the House passed the bill 87-11 on Feb. 2, the Senate passed it by a 37-8 vote on Feb. 18. However, as the latter chamber amended various other provisions of the House-approved version, the bill was sent back to its original chamber. House members did not agree with the Senate amendments in concurrence, instead filing a motion to dissent, meaning that the bill will now have to go through a reconciliatory conference committee.
What would HB 1052 do to sweeps?
HB 1052 defines a sweepstakes game as an online game, contest or promotion that utilizes a “dual-currency or multi-currency system of payment” and allows a player to exchange real money for a chance to win cash or an equivalent prize. The bill’s initial form only included dual-currency language but that was amended in the House to add multi-currency.
The sweeps that it targets are games that simulate casino-style games such as slots or table games, lottery games or sports betting. The proposed ban would not encompass any games offered by the state lottery commission.
One gaming-related amendment made to the legislation also carves out an exception for peer-to-peer skill-based poker games.
State regulators would have the authority to fine operators $100,0000 per offence through a civil penalty if they offer such a sweepstakes game in Indiana. It would also be a violation for out-of-state operators to provide such games to people in Indiana.
The punishments are another thing that changed since the original bill was filed; initially, the bill called for criminal penalties, but that was downgraded to civil penalties in the House.
What about the regulation idea?
During committee consideration in both chambers, some legislators floated the idea of pivoting from banning sweepstakes gaming to regulating and taxing it instead, a measure that the Social Gaming Leadership Alliance (SGLA) and leading Social Plus operators such as VGW supported.
“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,” said SGLA Managing Director Sean Ostrow at one January hearing.
During its journey through the Senate, HB 1052’s Senate sponsor Sen. Ron Alting acknowledged that he received stern pushback to the idea of regulating sweeps. The suggestions to regulate did not come to fruition and the state legislature opted to proceed with a prohibition.
Regulator says it has no enforcement power
The Indiana Gaming Commission (IGC) supported the bill, partly because, as they told legislators during committee hearings, it does not believes that sweeps casinos or sportsbooks are currently illegal under state law.
As such, said IGC representatives, the regulator does not feel that it could send cease-and-desist orders to sweepstakes gaming operators “in good faith, based on current law.” A ban would give it the legal standing to take firmer action, said the commission’s reps.
“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,” said Manning at a hearing last month.
Indiana session ends Feb. 27
With the House dissenting against the Senate amendments, the legislation will have to go to a conference committee. There is not much time for further discussion, as Indiana’s legislative session adjourns on Feb. 27.
If lawmakers can agree in conference and the bill is ultimately approved by the legislature and subsequently ratified by Gov. Mike Braun, Indiana would become the newest state to formally ban sweepstakes casinos, effective July 1, 2026.
