Indiana Latest to Move on Sweepstakes Casinos

Indiana Latest to Move on Sweepstakes Casinos

In what almost feels a bit like piling on, Indiana has joined a slew of other States in attempting to outlaw sweeps casinos. The nationwide push to pass legislation around the social casinos reached almost two dozen states this year, though only a half dozen were ultimately successful.

Indiana State Rep. Ethan Manning is the latest legislator to take a swing at the industry with House Bill 1052. Much like recent legislative measures in California and elsewhere, the bill would also allow the state to go after payment processors, geolocation providers, and others to the tune of $100,000 per violation.

The dual currency system, which allows customers to buy gold coins but be awarded Sweeps coins as well for these purchases and then gamble these coins on games that closely resemble slots or table games and then cash out those Sweeps coins for cash, is once again at the heart of this bill.

This system would classify that setup as gambling under Indiana law, as well as prohibit the use of simulated sports betting, bingo, or video poker, as well as the aforementioned table games or slots when playing for cash prizes. Interestingly, the bill as written doesn’t hold non cash games to the same standard.

Still, if passed, the bill would significantly restrict the ability of operators to offer the sweepstakes style games, as well as cut off their payment and other service providers.

Nationwide Pushback

The broader national movement has had mixed success this year, though, leaving the passage of the bill in doubt. Large blue states like California, New Jersey, and New York moved decisively on the untaxed, unlicensed, and unregulated businesses throughout 2025.

Governor Kathy Hochul signed New York SB5935 into law on December 9. That bill also authorizes up to $100,000 fines per violation, though most sweeps operators had left the Empire State after more than two dozen cease and desist letters went out from the state attorney general’s office in early summer.

In California, Governor Newsom signed AB 831 into law in October, after strong lobbying from the California Gaming tribes, who felt the Sweepstake product infringed on their exclusive rights to offer banked casino gaming.

This bill was much broader, including affiliates, banks, and even software providers in those that could be held accountable for up to $20,000 per violation. 

New Jersey, Connecticut, Montana, and Mississippi also passed legislation in 2025. And Louisiana had a bill pass through both houses only to be vetoed by the governor. 

The sweeps industry hasn’t gone quietly. The Social Gaming Leadership Alliance has spent the last 12 months attempting to persuade legislators that sweepstakes casinos should be licensed and taxed.

However, for various reasons, many states did not pass sweeps bills, including Florida, Massachusetts, and Illinois.

Indiana’s New Tack

Manning has previously attempted to move forward with online casino legalization, so this shift in tactics may indicate that lawmakers prefer to outlaw sweepstakes casinos before addressing the legalization of more traditional online gaming.

Indiana certainly won’t be alone in weighing its options on the legality of these operators, as states like Michigan, Arizona, and West Virginia continue to issue dozens of cease and desist letters and are likely to completely ban Sweeps operators in 2026. 

It’s also quite likely that states like Florida and even Louisiana that didn’t quite get their bills across the finish line may try again in the New Year. I predict a busy year for the SGLA.