Indiana lawmakers just took a major step toward banning many sweepstakes casinos in the state. On February 2, 2026, the Indiana House of Representatives passed HB 1052 by an 87–11 vote. The bill now moves to the Indiana Senate, where it will need committee hearings and more votes before it could become law.
The proposal focuses on online casino-style games that use dual-currency or multi-currency systems and let players redeem prizes that can resemble cash. Supporters say the bill closes a legal gray area and strengthens consumer protection. Critics argue the industry should be regulated instead of banned.
What HB 1052 Would Ban in Indiana
HB 1052 targets a specific type of online product. It defines a sweepstakes game as a contest or promotion that is available online, playable on a phone or computer, and uses a dual-currency or multi-currency setup. Under the definition, players can exchange currency for a cash prize, a cash equivalent, or a chance to win one.
The bill also looks at what the games simulate. It covers products that mimic lottery games or casino-style gaming, including slot machines, video poker, table games, bingo, and even sports wagering-style play.
In practical terms, the bill is aimed at sweeps casinos that look and feel like regular online casinos, but operate using promotional currencies instead of direct real-money wagers. If HB 1052 becomes law, these platforms would likely block Indiana players or stop offering sweepstakes-style prize play in the state.
How the Bill Changed During the Process
HB 1052 did not start in its current form. Early versions included criminal penalties, but lawmakers later changed the enforcement approach. During committee work in the House, the bill was amended so the main punishment is civil, not criminal.
That change matters. Instead of criminal charges, the bill would allow regulators to impose a civil penalty of $100,000 on operators who knowingly run these sweepstakes games involving people located in Indiana. Lawmakers also added “multi-currency” language so the bill applies to more than just a strict two-currency model.
The debate included a push to regulate sweepstakes casinos instead of banning them. Some lawmakers raised concerns that new sweepstakes sites were not clearly breaking existing Indiana law, and they questioned why the state would ban the model rather than build licensing rules and consumer safeguards. A proposed regulation framework was discussed but did not pass.
What Happens Next in the Senate
Now the bill shifts to the Indiana Senate, where it will be assigned to a committee. If it gets a hearing, senators can debate it, amend it, or stop it. If it moves out of committee, it would still need to pass the full Senate and then be finalized before going to the governor.
Timing is important. Indiana’s legislative calendar includes key deadlines in early February, and the session is scheduled to end on February 27, 2026. That means the bill may need to move quickly to stay alive.
Regulators have also weighed in. The Indiana Gaming Commission has said it lacks clear authority under current law to take direct action against sweepstakes operators, like issuing cease-and-desist letters. Supporters of HB 1052 say that is exactly why lawmakers need to update the statutes. Opponents say the state should slow down and consider regulation, especially if lawmakers believe these sites currently operate in a gray area.
For now, HB 1052 is not a ban yet. But with the House vote complete, it is one of the most advanced sweepstakes-focused bills in the country this year.