Sweepstakes Gaming Banned in Indiana

In yet one more state legislative motion concentrating on sweepstakes gaming operators and associated entities, the Governor of Indiana not too long ago signed into legislation House Bill 1052 (“HB 1052”), which is able to change into efficient on July 1, 2026. HB 1052 imposes a statewide prohibition on the operation of Internet-based sweepstakes-style gaming merchandise. Unlike comparable payments enacted throughout the final 12 months in states like Montana, Connecticut, California, and New Jersey, nevertheless, HB1052 imposes civil, not legal, penalties on violators. 

Overview of Indiana HB 1052

The key provisions of HB 1052 prohibit any operator or particular person from knowingly utilizing the Internet to conduct a “sweepstakes game.” Under the statute, a “sweepstakes game” is outlined as a sport, contest, or promotion that: (a) is on the market on the Internet; (b) is accessible on a cell gadget or laptop; (c) makes use of a dual-currency or multi-currency system of fee, permitting the participant to trade foreign money for a money prize (or money equal) or for an opportunity to win a money prize (or money equal); and (d) simulates a lottery or on line casino sport, together with slot machines, video poker, desk video games, bingo, and sports activities wagering. In quick, HB 1052 prohibits Internet-based sweepstakes video games simulating on line casino, lottery, or sports activities wagering merchandise of any type.

Penalties Under HB 1052

While the legislation doesn’t have legal implications, violations of HB 1052 may end in important civil penalties. Specifically, HB 1052 imposes civil penalties of as much as $100,000 towards an operator or particular person who knowingly conducts a sweepstakes sport in Indiana or in a transaction immediately involving an individual situated in Indiana. 

Scope of HB 1052

Unlike current laws in different states, comparable to California’s AB 831 and New York’s S5935, HB 1052 doesn’t expressly broaden legal responsibility to entities that help on-line sweepstakes video games, comparable to monetary establishments, fee processors, gaming content material suppliers, advertising and marketing associates, geolocation suppliers, and platform suppliers. The prohibition beneath HB 1052 is proscribed to any “operator or individual who knowingly uses the Internet to conduct a sweepstakes game.” Similarly, HB 1052 doesn’t embrace extra prohibitions, such because the “proxy betting” prohibition included in New Jersey’s current laws. But the language of the invoice is broad and can undoubtedly be topic to quite a few efforts to interpret and apply its precise scope. Suppliers ought to seek the advice of counsel to find out if provision of its companies to sweepstakes operators in Indiana could have an effect on their regulatory standing.

Related Developments

The enactment of HB 1052 in Indiana is the most recent within the pattern by states to ban, regulate, or in any other case management sweepstakes model gaming merchandise. Connecticut, Montana, New Jersey, New York, and California additionally enacted related laws in 2025. In addition, regulators in Arizona, Delaware, Georgia, Idaho, Illinois, Louisiana, Maryland, Michigan, Minnesota, Pennsylvania, Tennessee, Washington, and West Virginia all took motion to attempt to implement anti-gambling legal guidelines towards sweepstakes casinos in 2025 and early 2026. HB 1052 continues the pattern of lawmakers and regulators narrowing the listing of places the place sweepstakes on line casino operations can proceed with out substantial regulatory interference. With HB 1052 set to take impact on July 1, 2026, market members ought to rigorously take into account their strategy to operations throughout the area.

Blank Rome’s Gaming Practice Group

Blank Rome’s Gaming follow is well-equipped to help gaming purchasers in navigating the complexities of latest legal guidelines like Indiana’s HB 1052. Our group gives intensive expertise in gaming legislation and may present complete steerage to make sure compliance and strategic planning within the evolving gaming panorama.

For questions on how HB 1052 could have an effect on your group, please contact Stephen D. Schrier, Dennis M.P. Ehling, Michael P. Trainor, Nicholas C. Guth, or one other member of Blank Rome’s Gaming follow.

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