Indiana Targets Sweepstakes Casinos with HB 1052

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Indiana Targets Sweepstakes Casinos with HB 1052

Indiana lawmakers have filed a bill seeking to ban sweepstakes casinos that use dual-currency systems that skirt gambling laws. 

The measure reflects growing concern over unregulated gaming platforms and consumer protection. If passed, the legislation would tighten rules around online sweepstakes while modernizing parts of Indiana’s gambling laws.

State Representative Ethan Manning introduced House Bill 1052 to address online gaming loopholes. The bill arrives as lawmakers across the U.S. consider how to balance consumer safety, tax revenues, and legal gaming options. It also affects broader gambling policy in the Hoosier State.

What HB 1052 Aims to Amend in Indiana’s Gambling Laws

House Bill 1052 would amend Indiana’s existing gaming statutes to outlaw dual-currency sweepstakes casinos. These platforms let players buy virtual tokens that can be used on casino-style games and, in some cases, be converted into cash or prizes. 

The dual-currency gambling model has drawn scrutiny because it mimics real-money wagering while operating outside regulated frameworks. 

Under the proposed law, operators offering simulated casino games that use two currencies could face civil penalties. They can be charged up to $100,000 per violation. 

The bill targets games that resemble real gambling products. This includes slots, video poker, table games, bingo, and lottery-style formats. Promotional contests that only award non-cash prizes would not be subject to the ban. 

The bill’s sponsors argue that such sweepstakes casinos exploit loopholes and pose risks to consumers. Additionally, opponents of sweepstakes casinos say these platforms lack oversight and protections found in US online sportsbooks. 

HB 1052 also seeks to align Indiana with other states moving to ban or restrict sweepstakes casinos like New York and California. 

However, some industry groups have urged regulation rather than outright prohibition. They contend that responsible rules could protect consumers while preserving business activity. 

Still, the bill’s backers maintain that closing loopholes is necessary before considering any expansion of legal online gambling options in the US online casino market in Indiana.

Voluntary Exclusion for Sportsbooks

In addition to targeting sweepstakes casinos, HB 1052 includes provisions to expand Indiana’s voluntary exclusion program. 

The proposed changes would allow both land-based and online operators to participate in Indiana’s self-exclusion list. This expanded program lets individuals opt out of gambling platforms, including those offering sports betting, if they choose. 

Participation by licensed sportsbook operators in the voluntary exclusion program is intended to enhance responsible gaming. By connecting exclusion lists across channels, lawmakers hope to provide a more uniform tool for problem gamblers. 

The move aligns with broader trends in regulated gaming to increase consumer safeguards. 

As Indiana’s legislature prepares for the next session, HB 1052 tests how the state will manage emerging gaming technologies.