Two US states are edging closer towards making online sweepstakes casinos illegal, following the progression of legislation through political chambers.
Indiana’s state Senate has approved House Bill 1052, which is a broader bill on various matters but includes a ban on sweepstakes and would enforce a six-figure civil penalty for violations.
HB 1052 passed through the state’s House of Representatives on 2 February with an 87-11 vote, before passing through the Senate on 18 February with a 37-8 vote. However, the bill passed through the Senate with amendments, so it went back to the House.
Members of the House disagreed with the changes, filing a motion to dissent and sending the bill through a reconciliatory conference committee. Time is of the essence, as Indiana’s legislative session adjourns on 27 February.
If the bill is approved and ratified by Governor Mike Braun, Indiana’s sweepstakes casinos ban would come into effect on 1 July 2026.
Just under 1,000 miles away as the crow flies, Maine has also advanced legislation that would ban dual-currency sweepstakes casinos.
Legislative Document 2007 passed through the Maine Joint Committee on Veterans and Legal Affairs on 18 February by an 8-2 vote with three absentees, but the bill will still advance to the next stage once those votes are cast.
The legislation will now make its way to the Senate floor for further discussion.
iGaming legislation
Maine’s legislation to ban sweepstakes casinos comes as the state moves closer to launching regulated online casinos in the state, alongside Virginia, which has also progressed iGaming bills through its House of Delegates and Senate this week.
In turn, this progression has caught the attention of operators interested in expanding their platforms into the markets, including Caesars Entertainment, who believe other states could follow if they have been impacted by budget issues. Virginia’s House Bill 161 would also ban online sweepstakes gaming if passed.
Tom Reeg, Chief Executive Officer at Caesars, said: “I get asked to predict what’s the next one to go. I would tell you, in both Maine and now Virginia, weeks before we were in the position that we’re in now, we would have told you we don’t – we’re not particularly optimistic. This stuff can come together very quickly and it’s not necessarily on our radar, or anyone’s radar, who will be next.
“The overarching truth is you’ve got a lot of states that have budget issues that are looking for revenue, in many cases, with new leadership. Virginia has a new governor who’s looking for revenue sources. That can be a good outcome for the casino business.
“I know in the last 18 months, that’s not been a great outcome. We’ve seen taxes on online sports betting move up. We’ve seen per-wager taxes were due for some good news in the political cycle and it looks like there may be some coming.”
Virginia would join Connecticut, Delaware, Maine, Michigan, New Jersey, Pennsylvania, Rhode Island and West Virginia in becoming the ninth US state to legalise iGaming if its legislation is signed into law.
