Indiana Anti-Sweeps Casino Bill Nears Passage

Indiana is close to passing a sweepstakes casino ban that would impose $100,000 penalties on operators and see the state join a national crackdown on dual-currency gaming sites.

Ryan Butler - Contributor at Covers.com
Ryan Butler • Senior News Analyst
Feb 23, 2026 • 15:53 ET • 4 min read
Photo By - Reuters Connect.

Indiana lawmakers from both legislative chambers Monday agreed to identical versions of a bill that would ban sweepstakes casinos, teeing up the legislation for a final vote in the coming days.

Key Takeaways
  • Indiana lawmakers agreed on a final bill banning dual-currency sweepstakes casinos, with strong bipartisan support and likely enactment before March 14.

  • The legislation would allow regulators to impose $100,000 penalties on operators and take effect July 1, targeting unlicensed online casino-style games.

  • Indiana joins a growing number of states moving to outlaw sweeps casinos amid concerns over consumer protections, lost tax revenue, and industry impact.

A joint conference committee meeting of members from the House and Senate adjourned after a minute Monday, signaling that representatives from the two chambers had agreed to a final, identical version of a wide-ranging bill that would ban online dual-currency sweep-style casino games. The brief meeting showed there was little pushback between minor differences between versions of the bill passed by both chambers and indicates it has more than enough support to again clear both chambers.

The final votes in both House and Senate are positioned to come before the legislature’s mandated March 14 adjournment date. A possible veto by Gov. Mike Braun could be overridden by simple majorities in both chambers, meaning that legislative passage in the coming days is tantamount to passing into law.

The legislation passed the House 86-12 and the Senate 37-8 earlier this month. The final version will likely pass by similar margins.

Indiana sweeps bill details

Assuming passage, Indiana regulators could impose a $100,000 civil penalty against any operator or individual that “knowingly uses the Internet to conduct a sweepstakes game.” Though state officials have pushed for this authorization to target operators, not customers, such a steep potential financial punishment would effectively deter any U.S. sweeps company from offering its games in Indiana.

The bill targets sweeps gaming sites that use dual or multi-currency systems, such as gold and sweeps coins, that can be exchanged for cash prizes or cash equivalents. The legislation allows the Indiana Gaming Commission to act against unlicensed digital sites that simulate lottery-style or casino-style games including slots, video poker, bingo, or sports wagering.

If passed, the bill would take effect July 1.

Indiana in 2019 became one of the first states to legalize statewide mobile sports betting.  The state also has more than a dozen brick-and-mortar casinos.

Indiana lawmakers have considered legalizing real-money online casino gaming in recent sessions. Legislators have not looked at a bill this year, in part to prioritize the sweeps ban and in part over fears that real-money iGaming would hurt existing in-person casino revenues as well as increase problem gambling behavior.

HB 1052 would tweak several other aspects of the state’s gaming laws, as well as alcohol and tobacco regulations.

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Indiana joins nationwide trend

Indiana is set to join a growing number of states looking to ban sweeps casinos.

California, Connecticut, Montana, Nevada, New Jersey, and New York have explicitly banned dual-currency sweeps casinos in recent months. Tennessee, Maryland, and Maine are among additional states considering sweeps ban legislation in their respective 2026 legislative sessions.

A handful of other states, including Idaho, Washington, Michigan, and Louisiana, have existing laws or regulations that prohibit these games. Gaming regulators in least a dozen other states have issued cease-and-desist letters, with varying levels of compliance.

State gaming regulators - and many regulated iCasinos and sportsbooks - have pushed for the sweeps bans, arguing these games are an illegal gambling form. Ban proponents say these companies don’t pay gaming taxes or fees and don’t offer comparable consumer protections required by licensed operators.

The hundreds of sweeps sites also generate billions of dollars in revenue, posing a direct threat to the regulated industry.

Sweeps proponents have testified in hearings across the country that these games are not a form of casino gambling and are more akin to a sweepstakes promotion offered by a company like McDonald’s. Most customers play these games using free-to-play “gold coins,” and the dual-currency system allows players to spend money on “sweeps coins” to enter into contests.

This argument has proved largely unsuccessful in statehouses.

There has been little legislative effort to regulate and legalize these types of games in more than two-dozen states that seek to ban them. Industry stakeholders have said sweeps casinos are on their “last gasps” before their inevitable outlawing in most, if not all, of the country.

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Ryan Butler - Covers
Senior News Analyst

Ryan is a Senior Editor at Covers reporting on gaming industry legislative, regulatory, corporate, and financial news. He has reported on gaming since the Supreme Court struck down the federal sports wagering ban in 2018. Based in Tampa, Ryan graduated from the University of Florida with a major in Journalism and a minor in Sport Management.  Before reporting on gaming, Ryan was a sports and political journalist in Florida and Virginia. He covered Vice Presidential nominee Tim Kaine and the rest of the Virginia Congressional delegation during the 2016 election cycle. He also worked as Sports Editor of the Chiefland (Fla.) Citizen and Digital Editor for the Sarasota (Fla.) Observer.

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