Indiana Lawmakers Open Sweepstakes Casino Ban Debate at HB 1052 Hearing
Indiana lawmakers formally opened debate over a potential ban on sweepstakes casinos during a January 6 hearing on House Bill 1052, exposing divisions over whether the state should prohibit the dual-currency gaming model outright or attempt to regulate it.
The bill was heard by the Indiana House Public Policy Committee, marking the legislature’s first substantive discussion of sweepstakes-style gaming during the 2026 session.
HB 1052 would amend Indiana law to include a statutory definition of a “sweepstakes game” and explicitly classify it as illegal gambling. The bill would also authorize the Indiana Gaming Commission to impose civil penalties of up to $100,000 per violation. Each violation is subject to felony charges.
Indiana Gaming Commission: Current Law Limits Enforcement
Representatives from the Indiana Gaming Commission (IGC) testified in support of prohibiting sweepstakes casinos. At the same time, they acknowledged that the platforms may not be violating Indiana’s current gambling statutes.
IGC legislative liaison Nate Friend told the committee that the agency believes banning sweepstakes casinos is in the public interest. He said that sweepstakes casinos are “essentially offering a form of gambling with no regulation, licensing, or taxation.”
Friend added that sweepstakes casinos lack responsible gaming tools, are not subject to independent testing or operator oversight, and do not face financial suitability requirements. Additionally, the platforms often allow users over 18, compared to 21 for legal gambling.
However, when asked whether sweepstakes casinos currently violate Indiana law, Natalie Huffman, General Counsel for the IGC, stated that the agency does not believe they do. She underscored the need for legislative clarification.
She added,
“Other states think their gambling laws are written in a way that can be used against these online casinos. But I don’t think that the way our gambling laws are written, we can move forward with sending a cease-and-desist letter in good faith, based on current law…The multi-currency model is what allows it to operate outside of our current regulatory scheme.”
Lawmakers Split on Ban Versus Regulation
Committee members expressed differing views on whether HB 1052 should impose an outright ban or pursue a regulatory framework.
State Rep. Jim Lucas questioned whether the legislature should prohibit an industry that regulators acknowledge is not clearly illegal under current law. He suggested considering regulation before prohibition.
Rep. Steve Bartels similarly raised the possibility of licensing or oversight, rather than an outright ban.
Committee chair Ethan Manning, the bill’s sponsor, pushed back on regulatory proposals. He emphasized that Indiana has not legalized online casino gaming and cautioned that regulation could effectively expand gambling without broader legislative approval.
No Vote Taken at January 6 Hearing
The January 6 session focused on testimony and debate. The committee did not vote on HB 1052. It remains pending before the House Public Policy Committee, with further hearings or amendments expected later in the session.
The committee, however, voted to advance a separate measure aimed at legalizing online lottery ticket sales.
Pressure Builds as 2026 Takes Shape
Indiana’s debate over HB 1052 is unfolding amid growing scrutiny of sweepstakes casinos across many states. This legislative session is poised to follow a year in which six states banned the platforms, while several others cracked down on them through enforcement actions.
Both Friend and Huffman told the committee that nine states, including Indiana, are currently working on prohibition legislation. Friend said those states include Maine, Arkansas, Maryland, Mississippi, Florida, Illinois, Ohio, and Massachusetts. He noted that the list spans the 2025-2026 legislative sessions.
Bills in Arkansas, Mississippi, Maryland, and Illinois died in 2025, so it’s unknown if new proposals will appear this session.
In Illinois, the Illinois Gaming Board recently told Sweepsy that sweepstakes casinos “are not welcome” in the state. The regulator, however, did not confirm or deny whether it had sent cease-and-desist letters. Notably, Tora Tora Casino is exiting Illinois on January 10. Meanwhile, several game providers appear to be no longer available on Stake.us, a popular sweepstakes casino, in the state.
One state not mentioned by Friend is Iowa. According to the Iowa Capital Dispatch, the Iowa Department of Inspections, Appeals, and Licensing has pre-filed a bill that will give the Iowa Racing and Gaming Commission the power to issue cease-and-desist orders to illegal gambling operators.
Under current law, the regulator can take enforcement action against regulated gaming that it oversees. If enacted, the bill could enable the regulator to take action against sweepstakes casinos if it determines they are illegal under Iowa law. Notably, Nevada passed a similar bill in 2025, resulting in almost all sweepstakes casinos leaving the state.
Elsewhere, two bills in Florida and one in Maine, which aim to prohibit sweepstakes casinos among other things, have been pre-filed for the 2026 legislative session.
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