Bill banning sweepstakes casinos in Indiana picks up speed

• Indiana legislators set to review proposal calling for the prohibition of sweepstakes casinos
• The bill complements an ongoing crackdown against sweepstakes nationwide
• In case lawmakers approve the proposal, sweepstakes operators would face monetary sanctions

With the start of the New Year, the legal woes for sweepstakes operators in the United States continue.

After facing scrutiny and pushback by lawmakers and gambling regulators nationwide, sweepstakes casinos are in the sights of legislators in Indiana.

Efforts against sweepstakes reignite early in 2026

Early last month, Rep. Ethan Manning introduced House Bill 1052, covering "various administrative law matters," including sweepstakes.

The draft law was co-authored by Rep. Peggy Mayfield and Rep. Justin Moed and was referred to the House's Committee on Public Policy.

The aforementioned Committee is set to review the bill on Tuesday, January 6, 2026, marking the first effort against sweepstakes casinos in 2026.

The proposal in Indiana comes on the heels of increased scrutiny and even bans of the popular sweepstakes model.

In New York, the fate of sweepstakes casinos was sealed after Gov. Kathy Hochul signed S 5935 into law early in December.

The legislation focused specifically on the dual currency model used by online casinos, a system at the heart of sweepstakes.

While some stakeholders and industry groups called for the regulation of sweepstakes, the legislation in New York effectively outlawed them.

With House Bill 1052 under review in Indiana this week, another similar proposal in Maine is expected to gain traction in mid-January.

If approved, the bill would enforce penalties against sweepstakes operators in Indiana

Indiana's House Bill 1052 proposes to define and establish "civil and criminal penalties for conducting "sweepstakes game."

House Bill 1052 reads: "As used in this section, "sweepstakes game" means a game, contest, or promotion that is available on the Internet and is accessible on a mobile phone, computer terminal, or similar access device that: (1) utilizes a dual-currency system of payment allowing a player to exchange currency for a cash prize, cash award, or cash equivalents or a chance to win a cash prize, cash award, or cash equivalents; and (2) simulates casino-style gaming, including slot machines, video poker, table games, lottery games, bingo, and sports wagering."

In the bill, a civil penalty of $100,000 is proposed against individuals or operators who knowingly offer sweepstakes games.

It's worth noting that the bill in Indiana focuses on the dual currency model incorporated by sweepstakes and it isn't overreaching.

This is in the context that House Bill 1052 features a provision for sweepstakes games, along with other policies and rules affecting horse racing, sports wagering and the sale and distribution of e-cigarettes and tobacco products.

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