Online sweepstakes casinos will be illegal in Indiana as of July 1.
After the state legislature passed the wide-ranging House Bill 1052 earlier this year, Gov. Mike Braun signed it into law on Thursday.
The bill includes many administrative measures across several industries, but the section that caught the attention of the gaming industry relates to dual-currency or multi-currency sweepstakes games that resemble forms of gambling.
Braun’s signature makes Indiana the first state this year to formally ban sweepstakes casinos after several jurisdictions did so in 2025.
Gambling-style sweeps banned
Braun’s signature ratifies a change to state law that would outlaw online games, contests, or promotions that simulate casino or lottery gaming or sports betting and that use a dual-currency or multi-currency system that allows players to exchange currency for a chance to win cash or equivalent prizes.
The law explicitly references products that resemble slots, poker, bingo and table games, as well as lottery-style games and sports wagering. The ban does not include games offered by the state lottery commission or peer-to-peer skill-based poker.
The Indiana Gaming Commission (IGC) will have the power to impose civil penalties of $100,000 against any operator or individual who knowingly offers such games either in Indiana or via a transaction directly involving a person located in the state. The bill initially called for criminal penalties but those were downgraded to civil penalties in an early amendment in January.
The House passed the bill 87-11 on Feb. 2 and the Senate approved it by a 37-8 vote on Feb. 18. After the two chambers reconciled differences in the bill created by Senate amendments unrelated to the sweeps ban, it was sent to Braun’s desk and has now been signed.
Regulator lamented lack of enforcement power
IGC representatives supported the bill during its committee consultation process, noting that as sweepstakes casinos or sportsbooks were not illegal under state law, the commission did not feel it could issue enforcement action like cease-and-desist orders to operators “in good faith.”
Some legislators floated the idea of abandoning the idea of banning sweepstakes gaming and instead moving to regulate and tax it, an idea that the Social Gaming Leadership Alliance (SGLA) has consistently supported in several states this year.
The SGLA said it has proposed a regulatory framework that enforces strict age verification, data privacy, and responsible social gameplay protections.
Social Plus operators not giving up on fight
Although some of their members’ games will be illegal in Indiana from July 1, leading sweepstakes and social gaming operators maintain that they want to work with the state on regulating the vertical.
The SGLA’s members include operators VGW, Yellow Social Interactive, ARB Interactive and B-Two Operations, who run what they now term “Social Plus gaming” brands, including Chumba Casino, Luckyland Slots, Pulsz, Modo Casino, McLuck, HelloMillions and more.
“We are disappointed that HB 1052 has become law, but are grateful to the many Indiana lawmakers who engaged thoughtfully on the merits of regulating this long-standing industry,” said SGLA Managing Director Sean Ostrow in a statement provided to SBC Americas.
“Despite the outcome, the legislative record shows meaningful bipartisan support for a smarter approach that embraces innovation and economic growth. We look forward to continuing to work with Indiana lawmakers on a regulatory framework for digital entertainment that protects the hundreds of thousands of Hoosiers that enjoy Social Plus games, while generating tens of millions in annual tax revenue.”
