Indiana has become the latest state to target sweepstakes casinos.
In a new bill introduced by Rep. Ethan Manning, online sweepstakes gaming would be banned throughout the state, with any operator, as well as payment and service providers, being issued a penalty of up to $100,000, according to MLive.
Key Takeaways
- Indiana Rep. Ethan Manning has introduced HB1052, which would outlaw sweepstakes casinos.
- Operators and payment providers in violation of the bill could face fines of up to $100,000.
- Indiana follows the likes of New Jersey and California in introducing legislation to ban sweepstakes.
At the heart of House Bill (HB) 1052 is the dual-currency system commonly used by sweepstakes casinos. Sites typically invite players to buy one form of currency, use it on games that closely resemble traditional gambling products, and then redeem winnings for cash or cash equivalents.
HB 1052 would classify such activity as sweepstakes gambling and bring slots-style games, video poker, table games, bingo, lotteries, and simulated sports wagering under the ban. Promotional contests that award non-cash items, such as merchandise or coupons, would not be affected.
Indiana’s move follows a broader national effort to regulate these models, which have proliferated in the gaps between state-level gambling laws. Throughout 2025, states including New York, New Jersey, and California took steps to restrict or shut down the sweepstakes model.
Rep. Manning has previously been linked to efforts to legalize regulated online casino gaming in Indiana, but those attempts stalled. HB 1052 signals a shift, as lawmakers appear to be focused on closing regulatory loopholes before reconsidering any broader reforms to online gambling.
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New York bans sweeps casinos as more states prepare similar measures
New York is the latest state to take definitive legal action against the sweepstakes model. Earlier this month, Governor Kathy Hochul signed bill S5935A, officially banning sweepstakes operators from running dual-currency platforms. Fines for violations range from $10,000 to $100,000 and can include the loss of gaming licenses.
Most operators withdrew from the state after the legislature passed the bill in June and Attorney General Letitia James issued cease-and-desist notices to 26 providers.
The sweepstakes industry body, the Social Gaming Leadership Alliance, criticized the ban, arguing that sweepstakes-style games contributed more than $230 million to New York’s economy in 2024 and could have generated substantial tax revenue under a regulated framework.
These arguments held little weight with lawmakers, however, and have not proved effective in other states, including California, Connecticut, Montana, Nevada, and New Jersey, which have all introduced bans.
Along with Indiana, Maine and Florida will also examine similar measures in 2026, while Louisiana, Delaware, and Arizona have issued cease-and-desist orders to operators.
