Indiana lawmakers have officially banned sweepstakes casinos. This development comes following the passage of House Bill 1052, led by Rep. Ethan Manning.
Manning, who tried to legalize real-money online casinos last year, argues that if Indiana isn’t getting a cut of the action through taxes, the action shouldn’t exist. This bill is a direct hit to the “multi-currency” loophole, where people can play casino-style games with gold coins and sweeps coins that can be purchased through the site.
What Penalties Are We Looking At?
The Indiana Gaming Commission is tired of playing whack-a-mole with these sites. Their General Counsel, Natalie Huffman, basically told the legislature that she wants the power to send “Get Out” letters to every operator immediately. To make sure these sites actually listen, the bill includes a $100,000 civil penalty for every single violation.
Lawmakers are framing this as a consumer protection move; they believe that these sites have zero regulation and zero accountability. But let’s be real because it is also about clearing the floor for the state’s own digital plans. While they are banning the sweeps, they are simultaneously pushing to let the Hoosier Lottery sell tickets online by 2027.
Opposition Party Weighs In
Finding a gambling bill without enemies is like finding a slot machine that only pays out jackpots because it just doesn’t happen. So I present to you the Social Gaming Leadership Alliance (SGLA), the group that has become a bit of a regular customer when it comes to opposing these social casino bills.
SGLA Managing Director Sean Ostrow didn’t hide his frustration after HB 1052 was officially passed:
“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.
“Despite the outcome, the legislative record shows meaningful bipartisan support for a smarter approach that embraces innovation and economic growth. We look forward to continuing to work with Indiana lawmakers on a regulatory framework for digital entertainment that protects the hundreds of thousands of Hoosiers that enjoy Social Plus games, while generating tens of millions in annual tax revenue.”
What is Maine Doing Differently?
While Indiana is busy building a wall, Maine is in the background doing something very similar but with a twist. Maine recently became the eighth state in the U.S. to legalize real-money online casinos, and after giving the Wabanaki Nations the exclusive keys to their new market.
To bolster their real-money market, Maine is moving forward with its own anti-sweeps legislation, LD 2007. Regulators in Maine have already labeled the dual-currency model as “unlawful gambling” and are warning residents that these sites offer no consumer protections. If you want to spin the reels in Maine, you will likely have to wait for the official tribal apps to launch later this year or in 2027.