Indiana lawmakers weigh sweepstakes casino ban

Indiana lawmakers debated a sweepstakes casino ban this week, with amendments proposing online casino legalisation.

With the new Indiana legislative session underway, online casino legalisation is quickly being raised as a possibility.

Lawmakers proposed a sweepstakes casino ban last month, and the House Public Policy Committee held a hearing this week on that bill, HB 1052. The prohibition would follow a litany of bans enacted last year across the country.

During the committee hearing, sponsor Rep. Ethan Manning suggested the prohibition would be picking winners and losers without the legalisation of online casinos. Indiana Gaming Commission General Counsel Natalie Huffman said the state’s laws do not allow the IGC to act on the unregulated operators.

Huffman said the laws are nuanced and the operators are not breaking laws, which is why the legislation is needed.

“Other states think their gambling laws are written in a way that is able to be used against these online casinos,” Huffman said. “But I don’t think that the way that our gambling laws are written, we can move forward with sending a cease-and-desist letter in good faith, based on current law. The multi-currency model is what allows it to operate outside of our current regulatory scheme.”

Could bill lead to Indiana online casino?

Lawmakers proposed multiple amendments, including online casino legalisation language.

The committee did not vote on the bill or amendments during the hearing. The committee did advance a separate bill to legalise iLottery, 9-3. That bill, HB 1078, heads to the House floor.

Multiple other states have sweepstakes casino prohibitions to consider this year, including Florida and Maine.

Along with an online casino amendment to the sweepstakes bill, those voting against the iLottery bill also wanted to include iGaming in that measure. Manning authored the iLottery bill as well. Last year, Manning’s online casino bill passed out of the Public Policy Committee but did not receive a hearing in the Ways and Means Committee. House Speaker Todd Huston said the bill would not receive a floor vote last year.

Still, Huston and Senate President Tempore Rodric Bray both indicated they were open to online casino legislation. Now, with this week’s hearing, legislators appear warmer to the idea of legalising Indiana online casinos. Industry sources have long pegged Indiana as a likely state to open to the industry.

However, Indiana has run into several roadblocks, including how online casinos might affect the robust brick-and-mortar casino industry.

Last year’s bill ended a year-long hiatus on gambling issues following a political corruption case tied to Indiana’s gaming industry.

Sweepstakes casinos regulation in play?

Last month, at the National Council of Legislators from Gaming States winter meeting, representatives from the sweepstakes casino industry called for regulation of their games.

“We want to be regulated. We want to pay taxes,” said Jeff Duncan, executive director of the Social Gaming Leadership Association. “It’s never dollar-for-dollar, you’re never wagering your money.

“In a regulated, taxed environment, there is an opportunity to help the budget of the states that are struggling. If you kick them to the curb, you miss out on the opportunity on tax revenue for the state and creating a regulated environment we advocate for.”

During Indiana’s hearing this week, Rep. Jim Lucas recommended regulating the sweepstakes casinos. He argued they found a way to work within the laws.

The Social Gaming Leadership Alliance proposed a regulatory framework for Indiana, as it has in several other states. The SGLA estimates a legal sweepstakes casino industry could generate more than $20 million in revenue for the state.

“Responsible regulation, rather than a ban, is the pragmatic pathway forward,” SGLA Managing Director Sean Ostrow said. “We are ready to work with Indiana legislators to protect consumers, support local businesses, and provide meaningful tax revenue while keeping these popular games accessible to adults.”

Pat covers the legislation and regulation of online gambling in North and South America, having covered the US sports betting industry extensively since 2019.