Could the polarising debate over the legality of sweepstakes casinos in Indiana rejuvenate the push for iGaming legislation?
Members of the House Public Policy Committee met to discuss House Bill 1052, which includes language that would create a statutory definition for “sweepstakes gaming” and explicitly classify the vertical as illegal gambling.
However, opinions were split on the best course of action after representatives from the Indiana Gaming Commission (IGC) revealed that the agency does not believe that online sweepstakes casinos are currently breaking state laws.
While the IGC and the committee’s chair, Ethan Manning, remained adamant that a complete ban remains the best course of action, other members questioned whether regulation is not the way forward.
Rep. Kim Lucas said: “I don’t think it’s right that an industry found a way to work within the boundaries of the law, and just because we don’t have our ducks in a row to legislate these industries and regulate them, we should punish them by outright banning them.
“It’s incumbent upon us to find a way to make this work, because I don’t think we should be in the business of picking winners and losers.”
Similarly, Rep. Steve Bartels put forward an amendment to abandon the proposed prohibition and instead focus on licensing and regulating operators.
If successful, this move would fly in the face of the current sentiment facing sweepstakes around the US.
The vertical has largely operated in a grey area by utilising a dual-currency system for gaming rather than real money, and legislators in states around the country have largely moved to curtail the vertical.
Last year, six states approved laws explicitly banning sweepstakes casinos. Meanwhile, nine states, including Indiana, are currently considering similar legislation.
Where does iGaming fit?
Another amendment to the wide-ranging bill focused on the possibility of reopening Indiana’s iGaming debate.
Rep. Kyle Miller, who authored the amendment, argued that the best way to address sweeps is to instead legalise online casino.
Last year, representatives of the house attempted to pass an online casino bill. However, the legislation failed to receive a hearing in Indiana’s Ways and Means Committee after passing out of the Public Policy Committee.
Concerns around the proposed legalisation focused on the potential negative impact on Indiana’s land-based sector and the increased risk of gambling addiction amongst citizens.
Yet, Miller argued that legalising iGaming would naturally curtail the sweepstakes market due to a lack of interest.
“Clearly, [sweeps] have cleverly found a way that doesn’t quite fit the definition of iGaming. And my contention is they’re able to do this because we’ve not passed a legal framework for iGaming,” he said.
No votes were made on the bill during the meeting, with further hearings and amendments expected later in Indiana’s legislative session, which ends in mid-March.
