The online gambling industry in United States faces a new significant restriction. Indiana became one of the most active states in regulatory matters by passing bill HB 1052, whose main objective is to curb the growth of platforms operating under promotional sweepstakes systems linked to simulated gambling.
Read more UK warns about the growth of the illegal market during the Cheltenham Festival
The law was passed by the state’s General Assembly in early 2025 and signed into law by Governor Mike Braun. Its entry into force is scheduled for July 1 of the same year, leaving a narrow margin for affected operators to adapt their business models or exit the state market.
What exactly does bill HB 1052 prohibit
The legislation specifically targets internet games that mimic casino games through promotional sweepstakes systems. These systems are usually linked to games, contests, or promotions accessible from mobile phones, computers, or similar devices.
According to the rule, the products covered by the ban are those that have a payment system in two or more currencies, where users can exchange real money to obtain cash prizes, cash equivalents, or the possibility of winning them. The law also specifies that these platforms have the capacity to simulate lottery games, slot machines, video poker, table games, bingo, and sports betting, among other formats.
Fines of up to $100,000 for operators
One of the most relevant aspects of the law is the penalty regime it establishes. The Indiana Gaming Commission is empowered to impose civil penalties of up to $100,000 on any operator or person who knowingly conducts internet sweepstakes-style gambling activities from within the state, or in transactions where a person is physically located in Indiana.
This provision seeks to close potential legal loopholes related to jurisdiction, by considering both operators based in the state and those offering their services to Indiana residents from other locations.
The industry asked for regulation, not prohibition
During the legislative process, the Social Gaming Leadership Alliance, a body representing the social money lottery sector and related platforms, presented arguments against the total ban. The organization maintained that comprehensive regulation would be a more pragmatic and beneficial response for the state, as it would allow for oversight of the activity, protection of users, and generation of tax revenue.
Read more Colombia creates a new tax on deposits in online gambling platforms
However, their arguments failed to sway the legislature’s will. The General Assembly opted for the prohibitive route, nullifying any possibility of a regulatory framework for this type of platform in the short term.
Differences between the original proposal and the approved law
The final version of bill HB 1052 incorporates relevant modifications compared to the original text presented in the legislative chamber. These changes are not minor: they expand the scope of the rule and adjust key definitions to reduce ambiguities in its application.
New definitions and exclusions
The approved law introduces specific changes to the applicable definitions and exclusions. Among the most notable adjustments is the clarification that the definition of sweepstakes games does not apply to promotions conducted by the Indiana State Lottery, which is expressly excluded from the scope of the rule.
Likewise, poker tournaments receive differentiated treatment: the law classifies them as peer-to-peer competitions based on skill, conceptually separating them from prohibited sweepstakes games.
A precedent with impact across the industry
The passage of bill HB 1052 in Indiana is not an isolated event. In recent years, several states in the United States have begun to review their legal frameworks in the face of the exponential growth of social gaming and online sweepstakes platforms, whose popularity increased significantly with the expansion of access to mobile devices and the proliferation of entertainment applications.
The stance adopted by Indiana, more restrictive than that of other states, could influence legislative debates taking place in other jurisdictions and set a trend regarding the legal treatment of this type of platform at the state level.
Read more Brazil: betting regulation multiplies reports of suspicious operations to COAF
