Indiana has officially joined a list of US states that have banned sweepstakes casinos in their jurisdictions, becoming the first state of 2026 to formally prohibit sweepstakes.
Elsewhere across the country, two separate bills that would ban prediction markets and sweepstakes casinos have been introduced in Minnesota.
Ban becomes law in Indiana
State Governor Mike Braun signed House Bill 1052 into law last week on Thursday, meaning that sweepstakes casinos would become illegal in the state from 1 July later this year.
With the law now in effect, any violations will be subject to a six-figure civil penalty from the Indiana Gaming Commission. Indiana is also the first US state to ban sweepstakes casinos in 2026.
HB 1052 passed the House on 2 February by 87-11 and the Senate on 18 February by 37-8. Once the differences on the bill created by Senate amendments unrelated to the sweeps ban were settled, it was sent to Braun’s desk for his signature.
With its signing, the legislation outlaws online games, contests, or promotions that simulate casino or lottery gaming or sports betting and that use a dual-currency or multi-currency system that allows players to exchange currency for a chance to win cash or equivalent prizes in the state.
This includes products such as slots, poker, bingo and table games, as well as lottery-style games and sports wagering. However, games offered by the state lottery commission or peer-to-peer skill-based poker are not included.
SGLA still optimistic on regulation
While sweepstakes casinos will be illegal later this year in Indiana, the Social Gaming Leadership Alliance (SGLA) hasn’t given up hope of potentially doing a full 180 and regulating operators in the state.
Sean Ostrow, Managing Director at the SGLA, said in a statement to SBC Americas: “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.”
The SGLA’s members include operators VGW, Yellow Social Interactive, ARB Interactive and B-Two Operations, who run what they call ‘Social Plus gaming’ brands, including Chumba Casino, Luckyland Slots, Pulsz, Modo Casino, McLuck, HelloMillions and more.
Minnesota introduces bills
Elsewhere in the US, Minnesota legislators have introduced separate bills that would ban prediction markets and sweepstakes casinos.
Senate File 4474 and SF 4511 were each filed officially a week ago and have been referred to separate committees.
SF 4474 would make Minnesota the latest state to ban online dual-currency games that simulate casino-style or other forms of gambling. SF 4511 would make it a felony crime to offer markets for trading on sports, casino-style games, politics, people and more.
