In yet another state legislative action targeting sweepstakes gaming operators and related entities, the Governor of Indiana recently signed into law House Bill 1052 (“HB 1052”), which will become effective on July 1, 2026. HB 1052 imposes a statewide prohibition on the operation of Internet-based sweepstakes-style gaming products. Unlike comparable bills enacted within the last year in states like Montana, Connecticut, California, and New Jersey, however, HB1052 imposes civil, not criminal, penalties on violators.
Overview of Indiana HB 1052
The key provisions of HB 1052 prohibit any operator or individual from knowingly using the Internet to conduct a “sweepstakes game.” Under the statute, a “sweepstakes game” is defined as a game, contest, or promotion that: (a) is available on the Internet; (b) is accessible on a mobile device or computer; (c) utilizes a dual-currency or multi-currency system of payment, allowing the player to exchange currency for a cash prize (or cash equivalent) or for a chance to win a cash prize (or cash equivalent); and (d) simulates a lottery or casino game, including slot machines, video poker, table games, bingo, and sports wagering. In short, HB 1052 prohibits Internet-based sweepstakes games simulating casino, lottery, or sports wagering products of any kind.
Penalties Under HB 1052
While the law does not have criminal implications, violations of HB 1052 could result in significant civil penalties. Specifically, HB 1052 imposes civil penalties of up to $100,000 against an operator or individual who knowingly conducts a sweepstakes game in Indiana or in a transaction directly involving a person located in Indiana.
Scope of HB 1052
Unlike recent legislation in other states, such as California’s AB 831 and New York’s S5935, HB 1052 does not expressly expand liability to entities that support online sweepstakes games, such as financial institutions, payment processors, gaming content suppliers, marketing affiliates, geolocation providers, and platform providers. The prohibition under HB 1052 is limited to any “operator or individual who knowingly uses the Internet to conduct a sweepstakes game.” Similarly, HB 1052 does not include additional prohibitions, such as the “proxy betting” prohibition included in New Jersey’s recent legislation. But the language of the bill is broad and will undoubtedly be subject to numerous efforts to interpret and apply its actual scope. Suppliers should consult counsel to determine if provision of its services to sweepstakes operators in Indiana may affect their regulatory status.
Related Developments
The enactment of HB 1052 in Indiana is the latest in the trend by states to prohibit, regulate, or otherwise control sweepstakes style gaming products. Connecticut, Montana, New Jersey, New York, and California also enacted similar legislation in 2025. In addition, regulators in Arizona, Delaware, Georgia, Idaho, Illinois, Louisiana, Maryland, Michigan, Minnesota, Pennsylvania, Tennessee, Washington, and West Virginia all took action to try to enforce anti-gambling laws against sweepstakes casinos in 2025 and early 2026. HB 1052 continues the trend of lawmakers and regulators narrowing the list of locations where sweepstakes casino operations can continue without substantial regulatory interference. With HB 1052 set to take effect on July 1, 2026, market participants should carefully consider their approach to operations within the space.
