Indiana is joining several states in the US in pushing legislation to ban online sweepstakes casinos. The state's House Public Policy Committee has unanimously passed Bill HB1052, planning to completely prohibit the operation of online sweepstakes casinos within the state. The bill's initiator and committee chairman, Ethan Manning, who is also a supporter of legalizing online casinos (iCasino) in Indiana, has amended the bill to reduce the original criminal penalties to civil penalties and adjusted the term "dual currency" to "multi-currency." This move aims to block regulatory loopholes exploited by sweepstakes operators, with similar actions being taken in multiple states across the US. Relevant US sweepstakes casino regulatory cases and compliance standards can be referenced on the PASA official website.
Indiana Bill: Revised to Advance, Aiming to Block Loopholes
The advancement of Bill HB1052 focuses on optimizing penalty severity and definitional expressions:
Core Action: The House Public Policy Committee unanimously passed the bill, which will next be submitted to the full House for a vote;
Key Revisions: Firstly, reducing the penalties for illegal operations from criminal to civil levels, and secondly, changing the bill's "dual currency" term to "multi-currency" for more precise definitions;
Regulatory Demands: Natalie Huffman, the chief legal advisor to the Indiana Gaming Commission, stated that explicitly prohibiting sweepstakes casinos allows regulatory authorities to legally issue stop orders, effectively controlling such operations.
During the bill discussion, there was a brief mention of whether "regulation is more appropriate than a ban," but the consensus still leaned towards an outright prohibition, although the sweepstakes industry had previously advocated for regulation over prohibition at the National Council of Legislators from Gaming States' winter meeting.
National Trend: 6 States Ban by 2025, More to Follow in 2026
The prohibition of sweepstakes casinos has become a legislative consensus in many parts of the US, showing a "batch advancement" trend:
2025 Ban Wave: 6 states have officially passed the ban, including New Jersey, New York, and California, with many state regulatory bodies also issuing stop orders to sweepstakes operators;
2026 New Developments: Several states have already scheduled related legislation, with Florida, Maryland, Maine, and Virginia all introducing ban proposals;
Special Case: Louisiana Governor Jefferson Landry vetoed the ban bill, but clarified that the state's gaming regulatory authority has the power to enforce existing gambling laws, subsequently, the state's Gaming Control Board issued stop orders to 40 unregulated gambling websites, including sweepstakes operators.
Chairman of the National Council of Legislators from Gaming States and West Virginia House Delegate, Sean Fluharty, openly stated: "Legislators rarely reach consensus, but on this issue, everyone agrees that sweepstakes casinos constitute illegal gambling and also steal state revenues."
Local Progress: Some States Faced Obstacles, Plans to Restart Discussions in 2026
Some states' previous ban legislation was unsuccessful, but plans are already in place to restart the legislative process in 2026:
Maryland: Last year, the Senate passed the ban bill, but it was blocked in the House. This year, both chambers have scheduled related hearings to restart the legislative process;
Mississippi: Last spring, the Senate first passed the ban bill, but it failed in the conference committee because the House added provisions for legalizing online sports betting. Legislators will discuss the issue again this year;
Indiana Related Discussion: During the bill's advancement, legislators briefly mentioned an amendment for legalizing online casinos. State legislative leaders have expressed an open attitude towards the legalization of iCasino, and the progress of the two issues may affect each other.
Nationally, the survival space for sweepstakes casinos is being continuously squeezed, with many states adopting a combination of "ban + enhanced enforcement of existing laws" to gradually block the regulatory gaps exploited by these operations, and the advancement of Indiana's bill undoubtedly makes this national trend even clearer.
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel:https://t.me/pasa_news
Original in-depth gambling channel:https://t.me/gamblingdeep
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PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
