Indiana moved closer this week to banning sweepstakes casinos, as lawmakers in multiple states continued a coordinated push to restrict the controversial online gaming model. If enacted, Indiana would become the seventh state to prohibit sweepstakes casino operators, following similar actions taken in six states last year.

A conference committee on Monday approved minor changes to House Bill 1052, clearing the way for final votes in both legislative chambers. The measure would ban sweepstakes casino operators and expand enforcement authority for the Indiana Gaming Commission against unlicensed operators. The Indiana Senate approved HB 1052 last week by a 37-8 vote but added an amendment related to tobacco and electronic cigarette wholesalers. That change required reconciliation with the Indiana House of Representatives, which had earlier passed the bill 86-12.

The conference committee met briefly Monday to resolve the differences. If both chambers approve the final version, the bill will head to Mike Braun for consideration. promotional sweepstakes models rather than traditional gambling licenses. Regulators in several states have argued that the platforms function as unlicensed online casinos.

Mississippi Senate Passes Ban Again

In Mississippi, the Mississippi Senate unanimously passed Senate Bill 2104, reviving an effort that stalled last year. The chamber was the first in the United States to advance a sweepstakes casino prohibition in 2024. That bill ultimately failed after the House added online sports betting provisions, a point of disagreement between the two chambers.

This year’s proposal focuses solely on sweepstakes casinos. SB 2104 would make operating or promoting such platforms a felony, with penalties of up to $100,000. The Mississippi Gaming Commission previously sent cease-and-desist letters to sweepstakes operators, signaling regulatory concern even before legislative action resumed. In Maine, the Joint Committee on Veterans and Legal Affairs voted 8-2 to advance Legislative Document 2007. The bill was introduced in December by Craig Hickman and would prohibit online sweepstakes casinos. It now heads to the Senate floor.

Maine’s action comes shortly after the state expanded legal online gaming. In January, Janet Mills allowed a bill to become law granting the state’s four tribes exclusive rights to operate online casinos. The juxtaposition underscores a growing divide in state policy: expanding regulated online gaming while restricting unlicensed or gray-market alternatives. Separate from sweepstakes legislation, the Illinois House Gaming Committee last week unanimously advanced House Bill 4171 by a 15-0 vote. The bill would prevent municipalities from imposing their own sports betting taxes.

Chicago implemented a 10.25% tax on sports betting revenue generated within city limits at the start of the year. Committee Chair Dan Didech introduced the measure after Brandon Johnson proposed the city tax. Didech has also filed separate legislation to eliminate Illinois’s per-wager tax, adopted last summer, which followed a 2024 increase in sportsbook tax rates to a tiered structure ranging from 20% to 40% based on revenue.

The rapid push to ban sweepstakes casinos reflects a broader shift in state gambling policy, as lawmakers move to shut down unlicensed operators while expanding tightly regulated online gaming markets.

Additional Bills on the Calendar

Other gambling-related measures are pending across the country:

• In Alaska, lawmakers will hold a hearing on House Bill 145, which would legalize online sports betting and authorize up to 10 sportsbooks.
• In Washington, legislators may vote on Senate Bill 6137 to permit betting on in-state college teams and allow bettors on tribal land to access multiple sportsbook platforms.
• In South Dakota, a House committee will consider Senate Joint Resolution 504 to legalize statewide online sports betting. The South Dakota Senate passed the proposal earlier this month by a 23-10 vote. If approved by the House, the measure would appear on the 2026 ballot. Voters in the state authorized sports betting in 2020, but wagering remains limited to in-person bets at casinos in Deadwood.

Taken together, the recent activity reflects a broader recalibration of state gambling policy. Legislatures are expanding regulated markets in some areas while tightening restrictions on operators that fall outside traditional licensing frameworks.