Indiana Legislature Passes Sweepstakes Casino Ban, Bill Heads to Governor

The Indiana legislature has passed House Bill 1052, a broad administrative measure that includes a provision explicitly prohibiting sweepstakes casinos, sending it to Governor Mike Braun’s desk for signature.

If signed, Indiana would become the first state in 2026 — and join six states from 2025 — to enact a law targeting dual-currency sweepstakes casino models.

The measure would take effect on July 1, 2026.

Conference Committee Finalizes Language

HB 1052 cleared its final hurdle on Feb. 26, when both chambers adopted Conference Committee Report 1:

• Senate: 46–4
• House: 68–21

The conference committee was appointed after the House rejected the Senate-amended version of the bill. During the conference committee meeting on Feb. 23, bill author Rep. Ethan Manning said the dissent was only to “fix small, substantive conflicts and a few technical issues.”

Those adjustments included removing language that had been included in the House-passed versions of SB 185 and SB 89, and relocating certain definitions to a different section of the Indiana code for structural clarity.

The Senate had previously passed the amended bill 37–8 on Feb. 17. The House initially approved the measure 87–11 on Feb. 2 before it crossed chambers. With both chambers now aligned, the bill has been enrolled and transmitted to the governor.

Statutory Definition of “Sweepstakes Game”

HB 1052 creates a new section of the Indiana Code — IC 4-33-10-7. The statute defines a “sweepstakes game” as a game, contest, or promotion that:

• “Is available on the Internet.”
• “Is accessible on a mobile phone, computer terminal, or similar access device.”
• Utilizes a “dual-currency or multi-currency system of payment” that allows a player to exchange the currency for “a cash prize, a cash award, or cash equivalents” or “a chance to win a cash prize, a cash award, or cash equivalents.”
• Simulates “lottery games” or “casino-style gaming, including slot machines, video poker, table games, bingo, or sports wagering.”

The statute expressly excludes “a game, contest, or promotion offered by the state lottery commission or peer-to-peer skill-based poker games.”

The bill authorizes the Indiana Gaming Commission to impose civil penalties of up to $100,000 on operators or individuals who” knowingly use[] the Internet to conduct a sweepstakes game”. The language also ensures the prohibition applies to out-of-state operators that transact with Indiana residents.

National Context: Sweepstake Market Contraction

If Governor Braun signs the bill, Indiana would become:

• The first state in 2026 to enact a sweepstakes casino prohibition
• The seventh state in the past year to pass legislation aimed at dual-currency sweepstakes models

In 2025, five states – Montana, Connecticut, New York, New Jersey, and California – enacted explicit prohibitions on sweepstakes casinos. Meanwhile, Nevada gave state regulators more power to target and prosecute unregulated operators, effectively forcing almost all sweepstakes casinos out of the state.

In addition, Idaho, Washington, and Michigan have long been off-limits for sweepstakes casinos due to state laws or enforcement actions.

Others could follow Indiana in 2026. Active legislation is under discussion in more than a dozen states.

What Happens Next?

Under Indiana’s constitution, the governor may:

• Sign the bill into law
• Veto the bill
• Take no action

If the governor takes no action within seven days of receiving the bill, it becomes law without his signature. If he vetoes it, lawmakers could still override it with a majority in both chambers.

Absent a veto, HB 1052 will take effect July 1, 2026.