In yet another blow to the concept of sweepstakes gaming, Indiana Governor Mike Braun signed into law House Bill 1052, which will make online sweepstakes casinos illegal as of July 1, 2026.
The bill covers a wide range of administrative measures across different areas, including gaming, with a ban on dual-currency and multi-currency sweepstakes games that resemble forms of gambling.
The bill follows similar pieces of legislation passed in states like New York and California, which have banned dual-currency gaming as well, although their language left things more open to interpretation and alternate forms of sweepstakes gaming.
One thing that sticks out for the poker community, however, is the fact that HB 1052 explicitly excludes sweepstakes poker from its language, saying: “However, the term does not include a game, contest, or promotion offered by the state lottery commission or peer-to-peer skill-based poker games.”
This exclusion may be great news for sweepstakes operators with a primary focus on poker, such as Clubs Poker, which will presumably continue operating in Indiana past July 1.
- Generous Welcome Offer
- Daily freerolls & free SC offers
- Hold’em, Omaha and Mixed Games
Traditional Sweeps Gambling Has Been Banned
The wording of HB 1052 and Governor Braun’s signature leave little to interpretation. Traditional sweepstakes gambling on games that simulate casino, lottery, or sports betting gambling using dual-currency or multi-currency systems will become illegal in Indiana as of July 1.
According to the bill, the Indiana Gaming Commission (IGC) will have the power to impose civil penalties of up to $100,000, presumably per infraction, against any operators or individuals who break the law by offering such games.
The bill even called for criminal penalties in its initial wording, but those have been downgraded to civil ones, which still won’t be much of a consolation for sweepstakes casino operators, who will be forced out of the state.
The Bill passed through both chambers of the Indiana legislature in February, following some reconciliation and amendments, and was ratified by the Governor on March 13.
Should Sweepstakes Gaming Be Regulated Instead?
The idea of a wide-ranging sweepstakes gaming ban came in part as a result of the IGC asking for more enforcement power against sweepstakes operators offering services to players across Indiana.
The Commission felt like sending cease-and-desist letters alone was not enough without the actual power to enforce, which is now being granted through the ability to impose civil fines upon the operators.
While the legislators eventually voted to ban sweepstakes casinos and sportsbooks, some preferred the Social Gaming Leadership Alliance (SGLA)’s idea of regulating and taxing sweepstakes operators instead.
The SGLA’s proposal, which was also floated in other states, recommended strict age verifications, data privacy, and responsible gambling measures, and taxation as an alternative to a ban.
SGLA’s Managing Director Sean Ostrow said: “We are disappointed that HB 1052 has become law, but are grateful to the many Indiana lawmakers who engaged thoughtfully on the merits of regulating this long-standing industry.”
The Alliance remains committed to further attempts at regulating sweepstakes gaming in Indiana, while the state legislature also continues to consider different proposals for wider real money gambling regulation, which would see Indiana join the likes of New Jersey, Michigan, Pennsylvania, and other states in offering legal games as an alternative to sweepstakes.
Which Sweeps Poker Operators Are Likely to Stay?
Despite Indiana joining a number of other states in banning sweepstakes gambling, the unique language of HB 1052 has allowed operators to continue offering sweepstakes poker games, which is a first when it comes to social gaming regulation.
While the majority of sweepstakes operators in the US focus their efforts on casino gaming and sports betting, this wording is very meaningful for a few, namely ClubWPT Gold, Clubs Poker, and Global Poker, all of whom are primarily poker operators.
The sites will have to disable any casino games and other forms of gambling they have in their platforms for Indiana players, but will be able to continue catering to Indiana players on the poker side of things.
For these few operators, HB 1052 becoming law could mean a boost in traffic, as some players choose to replace sweeps casino games and sports betting with sweeps poker on the few remaining sweeps platforms.
