Indiana Considers Online Lottery While Targeting Sweepstakes Social Casinos
Lawmakers in Indianapolis are weighing measures to permit online lottery sales while moving to curb sweepstakes-style social casinos.
LISTEN TO THIS ARTICLE:The Indiana General Assembly is debating two contrasting bills that could reshape the state’s gambling landscape: one would allow the Hoosier Lottery to sell tickets online, while the other seeks to outlaw or heavily restrict sweepstakes social-casino operators. Backers say the twin proposals aim to modernize lottery distribution and protect consumers, but critics warn of potential public-health consequences.
House Bill 1078, sponsored by Representative Ethan Manning, advanced out of a House committee on a 9-3 vote on Tuesday and would authorize the Lottery to offer ticket sales and certain digital games through regulated internet channels. Jared Bond, director of external affairs for the Hoosier Lottery, framed the move as overdue. “With banks, retail and public services operating online, letting Hoosier players buy lottery tickets digitally is a logical step”, Bond said. “A regulated iLottery provides consumer protections that third-party, unregulated products do not, and it helps recapture revenue that leaves the state.”
Proponents point to other jurisdictions that have expanded digital lottery offerings – such as New Jersey, Pennsylvania and Michigan – and report significant online growth after launch. Supporters argue a state-run online option would funnel revenue to state programs and allow regulators to impose age verification, geolocation checks, deposit limits and self-exclusion tools.
At the same time, House Bill 1052, sponsored by Representatives Peggy Mayfield and Justin Moed, targets sweepstakes social-casino operators that use free-to-play models alongside prize-awarding mechanics. Those companies have been criticized in several states for operating in a regulatory gray area; New York and California have previously enacted broad restrictions or bans aimed at similar businesses. Lawmakers behind HB 1052 say the bill would close loopholes that let such platforms offer gambling-like experiences without the oversight applied to casinos and sportsbooks.
Related: Indianapolis Lawmakers Discuss First Casino in Indianapolis
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Opposition Voices and Legislative Outlook
Not everyone in Indiana welcomes the expansion of lottery access. Lisa Hutcheson, vice president for prevention and policy at Mental Health America of Indiana, cautioned lawmakers about the lessons from rapid sports-betting rollouts. “We learned from the expansion of sports wagering that ease of access correlates with rising rates of gambling-related harm, particularly among young men”, Hutcheson said. “Introducing digital lottery sales without robust safeguards risks repeating that pattern unless the state commits to prevention, treatment funding and strong harm-minimization tools.”
Some legislators have tied the two issues together politically: pairing the consumer-friendly argument for an iLottery with a tough stance on sweepstakes is intended to broaden support among lawmakers who might otherwise oppose online expansion. That strategy could accelerate passage but also risks complicating negotiations if opponents insist on stringent restrictions that could limit the iLottery’s commercial model.
Observers say the bills face several procedural hurdles. HB 1078 must clear the full House, pass the Senate and survive any amendments before reaching the governor. Even if lawmakers approve online sales, implementing regulations – covering data security, geolocation, age checks and anti-addiction measures – would take additional rulemaking by state authorities and the Hoosier Lottery.
Next Steps for Lawmakers and Regulators
In the coming weeks, legislators are expected to hold additional committee hearings, solicit public testimony and consider amendments that could tighten consumer protections or narrow the sweepstakes ban. Key questions remain about enforcement: who will oversee compliance, how operator licensing will be structured and what fiscal impact the changes will have on state revenue and problem-gambling services.
Whether Indiana ultimately opens a regulated online channel for lottery sales while clamping down on sweepstakes platforms will depend on balancing revenue objectives with public-health safeguards. Lawmakers in Indianapolis appear poised to move forward, but the final shape of the policy is likely to be the product of negotiation between industry stakeholders, consumer advocates and state regulators.
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