Indiana House advances first 2026 sweepstakes casino ban
The Indiana House of Representatives has become the first legislative chamber in the United States in 2026 to act on a proposed ban on sweepstakes casinos.
Lawmakers voted 87–11 this week to advance HB 1052, authored by Rep. Ethan Manning. The measure would prohibit sweepstakes casinos from operating in Indiana. Senator Ron Alting will carry the bill in the upper chamber.
Defining sweepstakes casinos
Manning’s bill describes sweepstakes games as online contests that use multi-currency systems, allowing players to exchange virtual coins for cash prizes after playing casino-style games. During review in the House Public Policy Committee, lawmakers amended the bill’s language—replacing “dual currency” with “multi-currency” for clarity.
Penalties and enforcement
The legislation authorises regulators to impose civil fines of up to $100,000 on operators. Lawmakers also downgraded penalties from criminal to civil violations.
Indiana Gaming Commission General Counsel Natalie Huffman testified in early January that sweepstakes operators are not currently violating state law. However, she emphasised the need for explicit rules so regulators can issue cease-and-desist orders.
At the Indiana House Public Policy Committee last month, Chairman of Indiana State Gaming Commission Nate Friend testified as to why it would be in the interest of the public to ban sweepstakes casinos. As quoted by several media outlets, Friend said the coins have money value. They can be redeemed as Sweeps Coins for cash or prizes once a certain threshold has been reached. While one cannot purchase Sweeps coins, they are awarded in promotions or included as a free add-on with Gold Coin package purchases. Friend clarified that these are forms of gambling without regulation, licensing, or taxation.
Failed amendments and wider context
Efforts to regulate sweepstakes operators or legalise iCasinos failed in committee last month. Manning, a supporter of iCasino expansion, acknowledged that broader legalisation is unlikely in 2026, according to local media outlet, the Indiana Capital Chronicle.
Nationwide, six states—including California, New Jersey, and New York—enacted bans in 2025. In Louisiana, lawmakers passed a ban, but Governor Jeff Landry vetoed it, arguing regulators already had authority under existing gambling laws. Following the veto, the Louisiana Gaming Control Board issued more than 40 cease-and-desist letters to unlicensed operators, including sweepstakes sites.
Other states have taken similar enforcement actions, and additional cease-and-desist orders are expected this year.
National debate
At the National Council of Legislators from Gaming States (NCLGS) Winter Conference in Puerto Rico in December 2025, West Virginia Delegate Shawn Fluharty—who also serves as president of NCLGS and head of government affairs at Play’n GO—called sweepstakes casinos “illegal gambling” and “revenue theft,” urging lawmakers to act collectively. Meanwhile, operators argued that they represent a legal entertainment model.
Australian-based global financial services firm Macquarie said of the growing trend against sweepstakes casinos. According to Macquarie analysts, sweepstakes operators are adapting their strategies, but they also revealed that when faced with these regulatory challenges, operators tend to exit rather than challenge the restrictions through litigation.
Meanwhile, Maryland and Mississippi advanced sweepstakes bans through one chamber in 2025, but both measures stalled. Proposals remain active in 2026. Florida, Maine, Tennessee, and Virginia have also introduced legislation. In Louisiana, lawmakers are considering tying sweepstakes casinos to potential racketeering charges.
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