Indiana is set to become the seventh U.S. state to prohibit sweepstakes casinos, after lawmakers approved House Bill 1052 and sent it to Mike Braun for signature. Both chambers adopted a conference committee report on Thursday, clearing the final hurdle for the legislation. If signed, the ban will take effect on 1 July. Indiana would be the first state in 2026 to enact such a prohibition.

Legislative path and key provisions

The Indiana House approved HB 1052 in early February by a vote of 86-12. The Senate later passed the measure 37-8, adding an amendment related to tobacco and electronic cigarette wholesalers. A conference committee met earlier this week to reconcile differences between the two versions. Lawmakers adopted the compromise version with minor changes. Beyond banning sweepstakes casinos, the bill expands the authority of the Indiana Gaming Commission. The regulator would gain clearer power to act against unlicensed operators, aligning enforcement tools with the state’s broader gaming framework.

Supporters argue the measure closes a regulatory gap. Sweepstakes casinos often operate under promotional contest models that critics say resemble online gambling but fall outside traditional licensing systems. By prohibiting the model outright, Indiana joins a growing list of states seeking to restrict unregulated digital gaming.

Indiana’s move comes amid renewed efforts in several legislatures:

• In Mississippi, the Senate approved SB 2104 for the second consecutive year. In 2025, a similar measure stalled in conference committee after the House added online sports betting language, which divided the chambers.
• In Maine, the Joint Committee on Veterans and Legal Affairs advanced LD 2007, sending it to the Senate floor. The push follows Governor Janet Mills allowing online casino expansion to become law in January.
• In Tennessee, the Senate Commerce and Labor Committee unanimously advanced SB 2136. The bill classifies illegal gambling as a violation of the Tennessee Consumer Protection Act and grants additional investigative authority to regulators and the attorney general. It explicitly references dual-currency operators, including sweepstakes casinos.
• In Iowa, the Senate approved SF 2289 by a 44-0 vote. The legislation strengthens the enforcement powers of the Iowa Racing and Gaming Commission over unregulated operators, including offshore sportsbooks and sweepstakes platforms.
• In Maryland, four bills targeting sweepstakes casinos remain active. One is scheduled for a Senate committee hearing on 11 March.

Regulatory agencies have also taken independent action. In Illinois, the Illinois Gaming Board and the attorney general’s office issued more than 60 cease-and-desist letters in February to unlicensed online casino and sweepstakes operators. Indiana’s legislation follows a broader wave of enforcement in 2025. Six states enacted sweepstakes prohibitions last year:

• California
• Connecticut
• Montana
• Nevada
• New Jersey
• New York

 

Indiana is moving to close a regulatory gap by prohibiting sweepstakes casinos and strengthening enforcement against unlicensed operators.

Outlook

In Louisiana, lawmakers passed a similar prohibition bill, but Governor Jeff Landry vetoed it. Landry said existing authority already allowed regulators to police illegal gambling. The Louisiana Gaming Control Board subsequently sent 40 cease-and-desist letters to operators, including sweepstakes platforms.

Across the country, states issued more than 100 cease-and-desist letters to sweepstakes operators in 2025. Some, including Mississippi and Maryland, saw legislative proposals gain early traction before stalling. The renewed push in 2026 suggests that sweepstakes casinos remain a focal point for lawmakers and regulators. Indiana’s pending decision now places Governor Braun at the center of that national debate.