Indiana lawmakers are taking a fresh look at sweepstakes casinos in 2026. The focus is HB 1052, a bill that would make certain sweepstakes-style casino games illegal in Indiana.
The latest: the House Public Policy Committee held a hearing on January 6, 2026, but did not vote, and lawmakers are still weighing their next move.
Where the Bill Stands Right Now
HB 1052 was introduced on December 5, 2025, and sent to the House Public Policy Committee. At the hearing, lawmakers questioned regulators and industry guests about how these sites work and what Indiana can do under current law. No vote was taken, and the committee also did not vote on any proposed amendments.
The calendar is tight. Indiana’s legislature is scheduled to adjourn on February 27, 2026, so bills that stall can run out of time. In the same meeting, lawmakers advanced HB 1078, a separate proposal on online lottery sales.
What the Proposed Sweepstakes Ban Would Change
The bill defines a “sweepstakes game” as an online game that uses a dual-currency model and gives players a way to exchange currency for a cash prize (or a chance to win one). It also targets platforms that “simulate” casino-style gambling, such as slots, video poker, table games, bingo, and sports-wagering-style contests.
The dual-currency model is the key issue. These platforms use two kinds of digital credits, and one of them (Sweeps Coins) can connect to redeemable cash prizes under the site’s rules.
If it passes, HB 1052 would give Indiana new enforcement tools. The bill allows a civil penalty of $100,000 against an operator or individual who knowingly runs a covered sweepstakes game online involving someone located in Indiana. It also ties certain conduct to “professional gambling over the Internet,” which can be charged as a Level 6 felony.
For players, the main impact would likely be access. Sites could block Indiana users, change promotions, or limit redemptions to reduce legal risk.
The introduced version lists an effective date of July 1, 2026. Even with that future start date, operators may choose to pull out earlier if they believe enforcement is coming.
The Bigger Fight: Ban, Regulate, or Legalize Online Casinos?
A major theme in the hearing was that Indiana regulators say current law is not clear enough to act against sweepstakes casinos today. The Indiana Gaming Commission pointed to the multi-currency setup as a reason these sites can sit outside the state’s current regulatory system, becoming an issue in terms of the legality of sweeps casinos.
Sponsor Rep. Ethan Manning suggested that banning sweepstakes sites without allowing legal online casino games could mean the state is “picking winners and losers.” That’s why some amendments discussed at the hearing would combine a sweepstakes ban with language to legalize and regulate online casinos.
There’s also recent history here: an online casino bill moved in 2025 but didn’t get a final vote later in the process. That’s one reason some lawmakers now want the sweepstakes debate to include a bigger plan for legal online gambling.
Other lawmakers raised another approach: regulate sweepstakes casinos instead of banning them. Industry representatives told lawmakers they want clearer rules and would rather operate under licensing, tax, and consumer protection standards than stay in a gray area.
For now, Indiana’s sweepstakes ban is still just a proposal. The next signal will be whether the committee schedules a vote and which version of HB 1052 actually moves forward.