Indiana is set to become the first state in the nation to prohibit sweepstakes casinos, with a ban scheduled to take effect 1 July 2026. The measure, HB 1052, now awaits Governor Mike Braun’s signature after lawmakers approved a final conference committee report on Thursday. If enacted, Indiana will join six other states that have already outlawed the practice.
The bill’s path began in early February, when the House passed it 86–12. The Senate later approved it 37–8, adding an amendment tied to tobacco and e-cigarette wholesalers. A conference committee resolved differences last week, clearing the way for Braun’s desk.
Governors help shape the outcomes in their states. In Braun’s case, his position to sign HB 1052 signals a proactive stance on consumer protection and regulatory enforcement. Another provision of HB 1052 is that it expands the Indiana Gaming Commission’s authority and provides it with stronger tools to act against unlicenced operators.
What are sweepstakes casinos?
Sweepstakes casinos are online platforms that operate in a legal grey area by using a dual-currency system. Players use gold coins for casual play without monetary value, while “sweeps coins,” which are obtained through promotions or bundled purchases, can be redeemed for real cash. Games typically include slots, poker, blackjack, and other casino-style offerings.
Proponents of these platforms argue that they are not true casinos since players do not directly wager money. Regulators, however, view them as unlicensed gambling operations. Without oversight, states warn of heightened risks like fraud, addiction, unfair practices, and lost revenue for regulated casinos and sports betting markets.
Still, some operators and advocates frame sweepstakes casinos as entertainment platforms that should not be classified as gambling.
National momentum
Indiana’s move reflects a growing national trend, as several states have advanced similar bills, as reported by several media reports.
In Mississippi, the Senate passed SB 2104, marking its second attempt in as many years. A 2025 effort stalled after the House added online sports betting language. In Maine, the Joint Committee on Veterans and Legal Affairs advanced LD 2007, which now heads to the Senate floor. This follows Governor Janet Mills’ approval of online casino expansion in January.
Meanwhile, in Tennessee, the Senate Commerce and Labour Committee unanimously advanced SB 2136, strengthening consumer protection laws and targeting dual-currency operators such as sweepstakes casinos. For the Senate in Iowa, they approved SF 2289 by a 44–0 vote, expanding the Iowa Racing and Gaming Commission’s authority to act against unregulated operators, including offshore sportsbooks.
In Maryland, four active bills seek to ban sweepstakes casinos, with one scheduled for a Senate committee hearing on 11 March. As for Illinois regulators, they have issued more than 60 cease-and-desist letters to unlicensed online casino and sweepstakes operators in February.
Recent history
In 2025, several states like California, Connecticut, Montana, Nevada, New Jersey, and New York, enacted these bans. However, in Louisiana, despite legislators having passed a prohibition, Governor Jeff Landry vetoed it, citing existing enforcement powers. Still, Louisiana’s Gaming Control Board later issued 40 cease-and-desist orders, according to media reports.
Additionally, regulators across the country have sent more than 100 cease-and-desist letters in 2025, which underscored the crackdown. With Indiana’s latest action, momentum is building for broader restrictions across the country.
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