Governor Braun Signs Indiana's Sweepstakes Ban
Indiana Governor Mike Braun signed House Bill 1052 into law on March 13, 2026, making Indiana the first state this year to formally ban sweepstakes casinos through new legislation. The bill, which sailed through both chambers with overwhelming bipartisan support, will take effect on July 1, 2026. After that date, sweepstakes casino operators that continue to serve Indiana players will face civil fines of up to $100,000 per violation, enforced by the Indiana Gaming Commission.
HB 1052 passed the Indiana House 87-11 before clearing the Senate 37-8. The decisive margins in both chambers reflected broad legislative consensus that the sweepstakes casino model needed to be addressed at the state level, rather than left in a regulatory gray area.
How the Law Defines Sweepstakes Gaming
The statute defines a "sweepstakes game" as any internet-based game that uses a dual-currency or multi-currency system in which one or more currencies can be exchanged for prizes, cash, or cash equivalents. This language was specifically crafted to target the promotional model used by sweepstakes casinos, where players receive free-play tokens alongside purchasable tokens that can be redeemed for real prizes.
Representative Ethan Manning, who introduced and drove HB 1052, stated that the broad definition was designed to prevent operators from restructuring their platforms to avoid the law. By focusing on the underlying currency-exchange mechanism rather than specific game types, the bill closes potential loopholes that operators in other states have exploited.
Poker Carve-Out and Industry Lobbying
An amendment introduced by Senator Kyle Walker exempts skill-based peer-to-peer poker games from the ban. The exemption applies only to platforms where players compete directly against each other in games of skill, not against the house. This carve-out distinguishes Indiana's approach from broader bans in states like California, which did not provide similar exemptions under AB 831.
The Social Gaming Leadership Alliance, an industry trade group representing several sweepstakes casino operators, lobbied aggressively for a regulatory framework as an alternative to an outright ban. The alliance argued that regulation would provide consumer protections while preserving player access. Legislators ultimately rejected this approach, concluding that the sweepstakes model fell outside the scope of Indiana's existing gaming regulatory infrastructure.
Enforcement and Penalties
The Indiana Gaming Commission will enforce HB 1052 through civil penalties of $100,000 per violation. The Commission has authority to issue cease-and-desist orders and pursue enforcement actions against operators that fail to block Indiana players after the July 1 effective date. Unlike California's AB 831, which extends criminal liability to affiliates, marketing partners, and payment processors, Indiana's law focuses penalties on the operators themselves.
Players in Indiana will not face penalties under HB 1052. The law targets operators, not individuals who access sweepstakes platforms. However, once the ban takes effect, Indiana residents will have no regulated alternatives for sweepstakes casino play. Indiana has not legalized traditional regulated iGaming, and no legislation to do so has been introduced.
Indiana Joins a Growing List of Ban States
With the governor's signature, Indiana joins Connecticut, Montana, California, New York, and New Jersey among states that have enacted formal bans or enforced prohibitions against sweepstakes casinos. The pace of legislative action has accelerated significantly since California passed AB 831 in 2025, with multiple additional states considering similar measures in their 2026 sessions.
For Indiana players currently using sweepstakes casino platforms, the July 1, 2026 effective date provides a transition window. Players should plan to redeem any outstanding Sweeps Coins balances before that date, as operators are expected to begin blocking Indiana registrations and restricting access in advance of the enforcement deadline.