Indiana Lawmaker Moves to Ban Sweepstakes Casinos With New Bill

Indiana is joining a growing list of US states that are banning sweepstakes casino platforms. Rep. Ethan Manning filed House Bill 1052 (HB 1052), a legislative proposal aimed at banning these sites and imposing penalties for operators. The bill has passed its first reading and was sent to the House Public Policy Committee, where it awaits its full schedule for discussion, amendments, and potential testimony.  

Like recent laws that aim to ban sweepstakes operations, Indiana puts forward a definition of a sweepstakes game, as follows:

(1) utilises 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.

What Can We Expect from the Bill?

Because the bill was filed late in December, the active debate, for both the committee hearings and the House floor, remains unscheduled.

Although we haven’t yet seen an extensive back-and-forth between stakeholders and lawmakers, the bill’s features offer a glimpse of what we can expect:

• Outright ban on sweepstakes casinos. The bill aims to regulate gaming platforms that are built on the dual-currency model.
• Clear definition of sweepstakes games. HB 1052 is clear on its definitions: sweepstakes games are those that use the dual-currency payment system (Gold Coins and Sweep Coins) and simulate casino-style games.
• Huge penalties for violators. Operators or groups who knowingly offer, run, and process payments for these sites in Indiana could face up to $100,000 violation.

Indiana Joins a Broader Industry Trend

Indiana’s HB 1052 is part of a broader campaign against sweepstakes casinos. Several states have already passed laws banning these platforms, with New York as the latest on the list.

For supporters and legislators, these gaming platforms “blur the line with traditional and unregulated gambling”, since users can pay real money for coins that can be converted to cash prizes.

These legislations, according to their proponents, aim to close this legal loophole and bring clarity and better consumer protections to Indiana’s fast-growing gaming landscape.

REFERENCES

• HB 1052