Indiana Bill to Ban Dual-Currency Sweepstakes Casinos (HB 1052)
An Indiana lawmaker has introduced a bill aimed at banning sweepstakes-style online casinos that operate on a dual-currency model.
LISTEN TO THIS ARTICLE:House Bill 1052, entered into the Indiana House of Representatives record on Dec. 5, expands state regulatory reach by defining and penalizing sweepstakes games that mimic traditional casino products. The measure, authored by Representative Manning (R., District 23) with co-authors Representatives Peggy Mayfield (R.) and Justin Moed (D.), targets platforms that allow players to exchange real money for an alternate currency and then use that currency to pursue cash prizes or cash equivalents.
Legislation Aims to Target Dual-Currency Sweepstakes Casinos
At the heart of HB 1052 is a two-part definition of a prohibited sweepstakes game: one that uses a dual-currency payment system allowing exchange of currency for a chance at cash or cash equivalents, and one that simulates casino-style products such as slot machines, video poker, table games, lottery formats, bingo or sports wagering. The draft also draws a line around small amusement devices that reward players only with low-value noncash items or coupons redeemable for such items.
The bill authorizes civil penalties of up to $100,000 for operators found to be offering sweepstakes games under the proposed definition. Notably, the current language does not explicitly set out civil fines for third parties, such as affiliates, marketing partners or payment processors that facilitate access to these platforms, leaving questions about enforcement scope.
Representative Manning chairs the House Public Policy Committee. As of the bill’s filing, no committee hearing date had been posted on the legislature’s calendar, even while the House was scheduled to be in session for the week. Manning has a recent legislative history on gaming: he sponsored a measure earlier in 2025 that would have legalized online casino gaming in Indiana, which stalled in the Ways and Means Committee.
Industry observers say HB 1052 reflects growing state-level concern about sweepstakes casino models that operate in regulatory grey areas by using alternate currencies to simulate gambling. "The dual-currency mechanism is deliberately engineered to blur the line between a promotional sweepstakes and outright gambling", said an attorney who reviewed the bill and asked not to be named. "If adopted as written, Indiana’s approach could become a template for other states – but enforcement will be the key challenge, especially across payment rails and affiliate networks."
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Where States Stand and What Comes Next
HB 1052 is part of a broader national trend. California passed a ban on sweepstakes-style casinos that take this approach; that law is set to take effect on Jan. 1, 2026. In New York, Governor Kathy Hochul signed S5935 into law last week, making similar activity immediately subject to state action. Lawmakers in Florida and Maine have filed corresponding measures for the 2026 session and late 2025, respectively, signaling continued legislative momentum in several state capitols.
Only seven U.S. states currently permit regulated online casino gaming – Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island and West Virginia – and those jurisdictions have taken steps ranging from cease-and-desist orders to explicit legislative restrictions to curb sweepstakes casinos. That patchwork of responses highlights differences in how states balance consumer protection, tax revenue and market competition.
Consumer advocates and some regulators have supported stricter rules. "We’re seeing operators exploit loopholes created by alternate-currency models to offer games that are economically indistinguishable from casino gambling while avoiding oversight", said a consumer protection advocate who also agreed to speak anonymously. "Clear statutory language and robust enforcement tools are essential to protect vulnerable players."
For HB 1052 to advance, it must be scheduled for committee consideration and survive floor votes in both chambers. The bill’s progress will be watched closely by gaming companies, payment processors and advocacy groups, all of which could provide testimony or lobby for amendments that clarify liability for third parties and set enforcement mechanisms.
Legislators in Indiana and other states now face competing pressures: curbing what critics call pseudo-gambling schemes while deciding whether to move ahead with regulated iGaming frameworks that could capture tax revenue and offer consumer protections under a licensed model.
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