Legislation aimed at prohibiting online sweepstakes casinos has been introduced in Indiana. State Representative Ethan Manning filed House Bill 1052, which seeks to outlaw platforms that operate with dual currencies, effectively targeting the growing online gambling sector. The bill proposes amendments to existing laws and outlines specific fines for violations within the state.
Earlier this year, Manning attempted to pass a bill to legalize iGaming, which would have placed regulatory oversight under the Indiana Gaming Commission. This earlier proposal required partnerships between iGaming websites and licensed casinos in Indiana.
Growing Trend Against Sweepstakes Casinos
In recent months, an increasing number of states have enacted bans on sweepstakes casinos. Notably, New York and California both implemented prohibitions on dual-currency sweepstakes casinos last week. The dual-currency model allows players to convert the casino’s currency into cash, raising concerns about gambling regulations.
States such as Connecticut, Idaho, Montana, New Jersey, and Washington have already outlawed these types of casinos, with several others calling for a cessation of operations from notable sweepstakes platforms, including Chumba, Stake, and WOW Vegas.
Details of House Bill 1052
House Bill 1052 specifies two critical requirements for an online game, contest, or promotion to qualify as a sweepstakes. Firstly, it must involve a dual currency that can be exchanged for real money, or an equivalent value, or provide a chance to win cash prizes.
Operators or individuals who knowingly conduct sweepstakes activities in Indiana will face penalties starting with a fine of $100 for each infraction. This fine will multiply based on the number of violations. While the bill outlines these fines, no additional penalties have been specified at this time.
The legislative move aligns with a broader trend of states reevaluating their stance on online gambling and sweepstakes. As regulations evolve, the implications of such legislation may have significant impacts on the gaming industry in Indiana and beyond.
