Indiana Plans to Ban Online Sweepstakes Casinos Amid Legal Concerns

In a move to conclusively address the legal ambiguities of online sweepstakes casinos, Indiana lawmakers have introduced a proposal aimed at banning these platforms and providing regulators with distinct enforcement powers. The initial step has been made through House Bill 1052, which gained unanimous approval from the House Public Policy Committee. This legislative measure targets entities operating online sweepstakes and assigns the Indiana Gaming Commission civil penalty authority over any violations. Chair of the committee, Representative Ethan Manning, is an advocate for regulated iCasino activities within Indiana. However, the current bill focuses strictly on the realm of sweepstakes casinos.

Strengthening Regulatory Framework

The necessity for a definitive legislative ban has been highlighted by the Indiana Gaming Commission to ensure effective enforcement of existing gambling laws. General Counsel Natalie Huffman has articulated that an explicit prohibition on sweepstakes casinos would facilitate the issuance of cease-and-desist orders. While regulation has been proposed as an alternative solution by some legislators, sweepstakes operators are pushing for oversight at forums such as the National Council of Legislators from Gaming States (NCLGS) winter conference. Discussions on expanding legalized online gambling through regulated iCasino platforms are ongoing, indicating a keen interest among lawmakers in this area.

National Movements and Legal Precedents

Indiana’s proposed legislation aligns with similar actions taken by multiple states across the nation aimed at curtailing unregulated gambling activities online. In recent moves, six states including New Jersey, New York, and California have enacted prohibitions on sweepstakes casinos. Other states have augmented their stance by issuing cease-and-desist notices, with Florida and Maryland currently evaluating comparable legislative measures. According to West Virginia Delegate Shawn Fluharty, who also serves as the head of NCLGS, the issue has managed to unify lawmakers under the shared understanding that such operations equate to illegal gambling and revenue loss for many states. This consensus is echoed, albeit inconsistently, in Louisiana where despite the governor's veto of a proposed ban, regulators have sent out multiple cease-and-desist letters to non-compliant operators. Indiana law already defines online casino-style gaming broadly, prohibiting slots, roulette, dice, or card games played over the internet by state residents, with violations potentially resulting in felony charges as described under Indiana Code § 35-45-5-3(b). Court judgments, such as in Jack Eiser Sales Co. v. Wilson, have reinforced these prohibitions by clarifying the notion of 'stake and consideration' in these transactions. Adding to the legislative push, the Indiana Attorney General has asserted the notion of culpability for any resident participating in internet gambling while physically present in Indiana. Source: “Indiana House committee sends sweepstakes casinos ban forward”, igamingbusiness.com, January 22, 2026 By GamesAndCasino