Indiana the Latest State Pushing to Ban Sweepstakes Casinos

Lawmakers officially opened the debate on sweepstakes casinos at a January 6 hearing for House Bill 1052

Indiana the Latest State Pushing to Ban Sweepstakes Casinos

2026 is off to a rocky start for sweepstakes casinos, with Indiana looking at banning the popular sites. 

Lawmakers officially opened the debate on sweepstakes casinos at a January 6 hearing for House Bill 1052, which could see Indiana sweepstakes casinos outlawed in the state later this year.

It comes following a wave of anti-sweepstakes measures last year that saw California, Montana, New Jersey, and several other states decide to target the sweepstakes phenomenon. 

If Indiana does join the growing list of states to have banned sweepstakes casinos, it would mean another major blow for sites like Stake.us and WOW Vegas. 

Sweepstakes Casinos Could Be Banned in Indiana, While Revenue for the Sweepstakes Industry Projected to Drop 

The coming months will see Indiana take a look at sweepstakes casinos as they decide whether to outright ban them or attempt some form of regulation. 

HB 1052 would change Indiana law so that any “sweepstakes game” is technically classified as illegal gambling, even if real money isn’t being directly wagered. 

At the same time, any sweepstakes casino that continues to operate in the state could be hit with a civil penalty by the Indiana Gaming Commission of up to $100,000. 

The IGC’s Legislative Liaison Nate Friend told the committee that sweepstakes casinos are “offering a form of gambling with no regulation, licensing, or taxation” and that they would have already banned sweepstakes operators if they had the power to do so. 

Much of the anger against sweepstakes casinos from lawmakers comes from the fact that these sites use a multi-currency model instead of real money, allowing them to dodge traditional gambling laws.

Players can choose from Gold Coins and Sweeps Coins, which are not viewed as genuine gambling currency by the law. 

However, anyone who collects enough ‘Sweeps Coins’ can then redeem them for prizes like gift cards and cash exchanges, so it’s essentially a legal loophole. 

Indiana is now the latest state to recognize this and will push for a sweepstakes casino ban throughout 2026. 

Before the new year even started, Eilers & Krejcik Gaming had estimated that sweepstakes casino market revenue would drop to $3.6 billion in 2026, down from around $4.6 billion in 2025. 

And with Indiana set to ban sweepstakes casinos at some point over the coming months, this projection may even prove to be slightly underestimated, especially if more states follow in Indiana’s footsteps. 

The Sweepstakes Casino ‘Controversy’ 

Since sweepstakes casinos exploded in popularity a while back, they’ve stirred up controversy everywhere, not just Indiana. 

California, New York, and other states have all implemented bans against them. 

Some of the casinos themselves have also been hit with huge lawsuits, like when High 5 Casino was ordered to pay out $25m in damages to players at the start of last year. 

Rapper Drake and popular streamer Adin Ross have also recently been hit with a RICO lawsuit due to their marketing association with the huge Stake.us casino. 

Indiana’s Online Casino Bill Failed in 2025 

It was only last year when Indiana lawmakers tried to legalize online casinos. 

As it stands, online casinos are still banned in Indiana, but state Representative and chair of the House Public Policy Committee Ethan Manning attempted to have them legalized. 

The bill ultimately stalled in committee without a vote, though, and the attention has now turned to sweepstakes casinos instead. 

Online gambling is booming in the US right now, so it makes sense why Indiana would potentially want to have the likes of the DraftKings and FanDuel casinos legalized in the state for tax revenue purposes. 

It’s a different story with sweepstakes casinos, which are seen as more exploitative and less valuable from the state’s perspective. 

Indiana Lawmakers Also Want to Legalize Online State Lottery Ticket Sales

While Indiana considers a potential ban on sweepstakes casinos, lawmakers in the state are also pushing legislation that would allow state lottery tickets to be sold online. 

The Indiana House Public Policy Committee voted 9–3 and House Bill 1078 has now been sent to the full House. 

However, if the bill is officially approved, online lottery ticket sales in Indiana wouldn’t begin until summer 2027. 

This is to allow time for proper systems to be implemented so that underage players won’t be able to purchase lottery tickets illegally. 

It Could Be Another Difficult Year for Sweepstakes Casinos

One thing sweepstakes casino operators will be hoping for in 2026 is that Indiana doesn’t successfully implement its anti-sweepstakes bill. 

This would once again harm revenue for the likes of Stake.us and Chumba Casino while also potentially encouraging even more states to follow suit. 

Ultimately, operators and players alike will have to wait until mid-March to see if the bill is passed into law.