Legislation that would outlaw sweepstakes casinos in Indiana passed the House on Monday.
HB 1052 by House Public Policy Committee Chairman Ethan Manning was transferred to the Senate by an 87-11 vote.
The legislation includes language that would ban online sweepstakes casinos that simulate traditional gambling games and offer the opportunity to win cash prizes. It also gives state regulators clearer authority to act against sweepstakes style casino games operating in a legal gray area.
Sen. Ron Alting will act as Senate sponsor for the bill, which is awaiting committee appointment.
Ban on sweepstakes casinos detailed
HB 1052 defines sweepstakes games as online contests that use dual or multicurrency systems allowing players to exchange currency for cash prizes or equivalents while simulating casino style or lottery games.
Under the bill, regulators could impose civil penalties of up to $100,000 on operators who knowingly conduct such games in Indiana or transact directly with Indiana residents.
An amendment that would have changed the bill’s language to regulate sweepstakes casinos was voted against at a committee hearing in January.
Regulator says current law limits enforcement
Indiana Gaming Commission officials told House Public Policy Committee they lack authority under current law to take enforcement action against sweepstakes operators. IGC Legislative Liaison Nate Friend said cease and desist letters would have already been issued if the commission had the legal ability to do so.
IGC General Counsel Natalie Huffman said sweepstakes operators are not technically violating existing statutes, despite concerns about consumer protection.
Online casino, lottery pushes dead?
Manning is also behind two other gambling movements this year that will be officially dead in two days without a House vote.
Feb. 5 is the crossover deadline for the Indiana legislature, which adjourns Feb. 27.
Manning had an amendment to HB 1052 that would legalize online casinos as well as HB 1078, which would legalize online lottery games. The amendment for online casinos was similar to his push for legalization in 2025 but was not put to the committee for a vote.
HB 1078 stalled after receiving its second reading in the House last month.
