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The Indiana Senate voted 37-8 on Feb. 18 to approve House Bill 1052, moving the state significantly closer to a total ban on sweepstakes casinos. If signed into law by Gov. Mike Braun, the legislation would take effect July 1, 2026, making Indiana the seventh state to outlaw such platforms.
What HB 1052 means for online gaming in Indiana
At its core, Indiana’s HB 1052 targets online games and promotions using dual- or multicurrency payment systems where players spend real money for the chance to win cash or prizes. First introduced by state Rep. Ethan Manning in December 2025, the bill’s language was broadened by the House Committee on Public Policy to ensure it captured various digital exchange models.
According to the news post by Global Gaming Insider, state regulators could issue civil penalties of up to $100,000 per offense under the current version. However, the Senate added key exemptions before its vote, specifically protecting the state lottery and peer-to-peer skill-based poker. Following an 86-12 House approval on Feb. 4 and the subsequent Senate amendments, the bill now returns to the House for a final concurrence vote.
SGLA fights for sweepstakes casino regulation
The clock is ticking for supporters of the measure. Because the Indiana legislative session adjourns Feb. 27, lawmakers have only days to reach a final agreement and send the bill to the governor’s desk. If the House fails to concur with the Senate’s amendments before the deadline, the bill will die, and the legislative process to prohibit sweepstakes casinos would have to restart in a future session.
This urgency comes amid stiff opposition from the Social Gaming Leadership Alliance (SGLA). Sean Ostrow, the group’s managing director, argued during testimony that the state should regulate rather than ban the industry. Ostrow noted that sweepstakes activities have been legal in Indiana since 2012 and cautioned that a total prohibition would criminalize legitimate businesses without deterring bad actors.
The national crackdown on sweepstakes gaming
Indiana’s move reflects an increasing skepticism toward sweepstakes gaming across the US. In Tennessee, Rep. Scott Cepicky introduced HB 1885 in January to classify such gaming as illegal gambling. That proposal followed a December 2025 intervention by Tennessee Attorney General Jonathan Skrmeti, who issued cease-and-desist notices to 40 operators, including Stake, McLuck and Chumba Casino.
The parallel efforts in Indiana and Tennessee signal a coordinated shift by state lawmakers to tighten definitions of online gambling and increase oversight of virtual-to-cash currency exchanges.
