Indiana has enacted legislation targeting online sweepstakes-style casino platforms, marking another state-level move against dual-currency gaming models. House Bill 1052 has now been signed into law by Gov. Mike Braun, introducing penalties for operators who offer certain online sweepstakes games to Indiana residents.
Key Takeaways
- Indiana has enacted House Bill 1052, targeting online sweepstakes-style casino platforms that use dual-currency systems.
- The law defines these platforms as internet-based games simulating casino or lottery products.
- The legislation takes effect July 1, 2026, and faced opposition from the Social Gaming Leadership Alliance.
Under the measure, sweepstakes are defined as internet-based games that simulate casino or lottery products, using dual - or multi-currency systems that can be exchanged for prizes or cash equivalents. The Indiana Gaming Commission will also have the power to impose significant civil penalties of up to $100,000 on operators who knowingly engage in such activities within the state.
Before making its way to the Governor’s desk, it had passed the House on Feb. 2 with a vote of 87-11, and then followed with a Senate vote on Feb. 17, which saw 37-8 in favor of the measure’s passage.
The legislation has also faced organized opposition during its journey through the legislature, particularly from the Social Gaming Leadership Alliance, which unsuccessfully urged lawmakers to regulate social-plus gaming rather than prohibit it outright.
The law goes into effect on July 1, 2026. Indiana joins the likes of Connecticut and Montana, which have already banned sweepstakes casinos.
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Other states advance anti-sweepstakes bills
Legislative action targeting sweepstakes casinos is also accelerating elsewhere. Tennessee and Oklahoma recently advanced bills through their state senates that target similar dual-currency online gaming platforms.
In Tennessee, Senate Bill 2136 approaches the issue through consumer protection law. The bill defines online sweepstakes games as internet gambling that uses virtual currencies to allow players to exchange that currency for prizes, cash, or cash equivalents, or just the chance to win them.
The proposal places these activities within the Tennessee Consumer Protection Act, allowing violations to be classified as unfair or deceptive practices.
SB 2136 now moves to the Tennessee House of Representatives. Lawmakers are also considering a companion measure, House Bill 1885, which could be merged into the Senate bill if both chambers approve similar language.
Oklahoma is pursuing a stricter criminal approach. Senate Bill 1589 amends the state's gambling statutes to explicitly include online casino-style games. The bill expands liability to companies providing services to sweepstakes operators, including geolocation providers, gaming suppliers, platform hosts, promoters, and media affiliates.
Violations would be classified as Class C2 felonies, carrying fines between $500 and $2,000 and possible imprisonment. The bill now advances to the Oklahoma House of Representatives, where lawmakers are reviewing a related proposal that has already cleared two committees.
