Indiana Governor Signs First Sweepstakes Casino Ban of 2026

^{Indiana Governor Mike Braun just signed a law banning online sweepstakes games within the state last Thursday. (Photo: Tia Dufour / DHS Photo / Alamy)}

Indiana Governor Mike Braun signed House Bill 1052 into law last Thursday, a piece of legislation that includes a ban on sweepstakes games that resemble gambling.

Under the new law, all online games, contests, and promotions that offer or simulate casino, lottery, or sports betting products while using a multi-currency system will be illegal in Indiana as of July 1, 2026.

Indiana Regulators: Legislation Needed to Combat Sweepstakes Sites

By signing the bill, Governor Braun made Indiana the first state to officially pass a sweepstakes casino ban in 2026, following a series of states that took similar measures last year.

The legislation easily passed both chambers of the state legislature, with the Indiana House (87-11) and Senate (37-8) approving the bill by wide margins in February.

Regulators from the Indiana Gaming Commission (IGC) had argued that current laws likely didn’t prevent sweepstakes casinos from operating legally in Indiana, and as such, they were previously powerless to take any enforcement action against them.

“It’s nuanced, but we don’t think so, which is why we need this legislation,” IGC General Counsel Natalie Huffman said during a hearing on the bill in January. “Other states that their gambling laws are written in a way that is able to be used against these online casinos. But I don’t think that the way that our gambling laws are written, we can move forward with sending a cease-and-desist letter in good faith, based on current law.”

SGLA Seeks Regulation as Alternative to Bans

The dual-currency model used by sweepstakes sites was the issue that Huffman referred to, and the model that sweepstakes operators argue makes their product distinct from online gambling.

These sites allow users to play in a free play mode with one currency – often called Gold Coins – which is for fun only, and which cannot be redeemed for cash or prizes. At the same time, users can also use “Sweeps Coins” to play, which can be traded in for rewards like cash or gift cards.

Players can’t directly purchase Sweeps Coins, which site operators say make them compliant with sweepstakes laws, and not under the jurisdiction of gambling regulators. Opponents counter by noting that Sweeps Coins are universally available as a “bonus” to the purchase of Gold Coins, typically on a dollar-for-dollar basis for their redemption value, and that most users are making purchases with real money gambling in mind.

The Social Gaming Leadership Alliance (SGLA), a trade group representing sweepstakes casino operators, said that it remained hopeful despite the passage of the Indiana ban.

“We are disappointed that HB 1052 has become law, but are grateful to the many Indiana lawmakers who engaged thoughtfully on the merits of regulating this long-standing industry,” SGLA Managing Director Sean Ostrow said in a statement. “Despite the outcome, the legislative record shows meaningful bipartisan support for a smarter approach that embraces innovation and economic growth.”