Indiana is poised to become the first US state in 2026 to ban sweepstakes casinos, as a prohibition bill is heading to Governor Mike Braun.
Both Indiana chambers approved a conference committee report on HB 1052 Thursday, sending the bill to Braun. Braun’s signature would make Indiana the seventh state to prohibit sweepstakes casinos and would go into effect 1 July.
A conference committee met earlier this week to iron out differences in the legislation passed by the two chambers. After a quick meeting with a few minor tweaks, the committee passed its compromise.
The House approved the bill, 86-12, in early February. The Senate passed the bill, 37-8, but also included an amendment related to tobacco and electronic cigarette wholesalers.
HB 1052 also grants the Indiana Gaming Commission more authority to act against unlicensed operators.
Indiana is the first state legislature to pass a sweepstakes ban this year.
States taking on sweepstakes casinos in 2026
However, other legislatures are also working their way through similar legislation against sweepstakes casinos:
- In Mississippi, the Senate approved a sweepstakes casino prohibition bill, SB 2104, for the second straight year. Last year, it was the first chamber in the US to pass a sweepstakes ban. It died in conference committee after the House added online sports betting language to the bill, a divisive issue between the Mississippi chambers.
- Maine’s Joint Committee on Veterans and Legal Affairs meanwhile passed LD 2007, which would ban sweepstakes casinos. That bill heads to the Senate floor. That comes as Governor Janet Mills allowed online casino expansion to go into law in January.
- In Tennessee, the Senate Commerce and Labor Committee advanced SB 2136, 8-0, which designates illegal gambling activities as a violation of the Tennessee Consumer Protection Act. It grants additional power to the sports wagering council and attorney general to investigate illegal gambling. It specifically mentions dual currency operators like sweepstakes casinos.
- The Iowa Senate approved a similar bill, SF 2289, 44-0, which increases the power of the Iowa Racing and Gaming Commission to not just regulate licensees but to act on unregulated operators. The targets in the bill include offshore illegal sportsbooks and sweepstakes.
- There are also four bills active in Maryland that would sweepstakes casinos, including one dialed up for a Senate committee hearing 11 March.
Outside of legislative action, the Illinois Gaming Board and Attorney General’s office sent more than 60 cease-and-desist letters to unlicensed, unregulated online casino and sweepstakes casino operators in February.
New year, similar story for sweepstakes casinos
Last year, an initial wave of action against sweepstakes casinos swept across the US.
Six states enacted sweepstakes prohibition bills:
- California
- Connecticut
- Montana
- Nevada
- New Jersey
- New York
Louisiana lawmakers also passed a prohibition bill, but Governor Jeff Landry vetoed it. Landry said the state gambling regulator already holds the power to enforce gaming laws. The Louisiana Gaming Control Board then sent 40 cease-and-desist letters to illegal gambling operators, including sweepstakes casinos.
States across the US sent more than 100 combined cease-and-desist letters to sweepstakes operators last year. That includes states like Mississippi and Maryland, where legislation saw initial momentum but eventually stalled.
Pat Evans
Pat covers the legislation and regulation of online gambling in North and South America, having covered the US sports betting industry extensively since 2019.
Original article: https://igamingbusiness.com/gaming/indiana-sweepstakes-casino-ban-heads-to-governor/
