Managing Editor
Indiana could become one of the states losing access to sweepstakes casino sites this year, as a bill that would ban the dual-currency business model is close to passing. In fact, the language outlawing “sweeps” has already passed votes in both the House and Senate. However, a dispute between the chambers on other aspects of the bill remains. Lawmakers will need to reconcile those differences before the ban can proceed to the governor’s desk.
There has been some good news for poker players, however, as the Senate has amended the bill to create a carveout for sweepstakes-based poker, thanks to its element of skill.
The Hoosier State is one of the largest remaining markets for sweepstakes gambling, or “social plus gaming” as the industry would prefer it to be known. New York and California both banned the games last year, although sweepstakes operators have so far managed to avoid eviction from Florida and Texas.
Operators’ opinions vary on which markets are off-limits. However, even Global Poker, one of the more conservative brands in this regard, doesn’t include Indiana on its list of restricted regions. Those terms were last updated on Feb. 6.
Representatives from the two chambers will meet on Monday in a conference committee to discuss the Senate’s amendments to the House bill. Although some Senators have said they would prefer to regulate sweeps than to ban them, it seems that both chambers are willing to proceed with the prohibition. However, the bill is a piece of omnibus legislation, tackling a variety of matters ranging from horse racing to tobacco and alcohol sales.
Indiana poker players hoping to retain a U.S.-based online option will therefore be hoping that Senators and House Representatives can’t come to terms on the tobacco sales portion, as that is where the dispute lies.
Keep Reading
Why Tobacco Sales Licensing Could Save Sweeps
Omnibus legislation is a mixed blessing. On the one hand, attaching desired changes to a must-pass bill can force legislators to deal with an issue they might otherwise ignore. On the other hand, it means that one sticking point can potentially sink the entire bill, preventing necessary and unrelated legislation from being passed. That is, for instance, why budget negotiations periodically cause the federal government to shut down.
The amendments to HB1052 are as varied and far-reaching as the bill itself. However, it seems that one particular change is behind the need for a conference committee.
Reportedly, the sticking point is that the Senate wants to remove a clause that prohibits anyone with a recent felony conviction from obtaining a tobacco sales certificate. The House believes that clause should remain.
Sweeps operators and most of their players presumably do not care much about this issue one way or the other. However, at this point, their best hope to avoid the ban may be that the House and Senate cannot come to terms on this seemingly minor issue.
The clock is currently in the operators’ favor, as legislators are hoping to wrap up this year’s session by next Friday, though, by statute, they could extend it until March 14 at the latest.
Last-Minute Reprieve for Sweeps Poker
Whatever happens, players on sites like Global Poker, Clubs Poker, Stake Poker, and ClubWPT Gold should retain access.
In its initial form, the definition provided for the banned games lists “video poker” but makes no reference to player-versus-player poker either way.
A Senate amendment inserts the following language:
However, the term does not include a game, contest, or promotion offered by the state lottery commission or peer to peer skill based poker games.
Aside from the immediate impact of that carve out, it’s a promising sign for the future of real-money online poker in the state. Although sites like BetMGM Poker and PokerStars are not currently legal in Indiana, the amendment shows that poker players have some allies in the Senate and that other lawmakers are willing to acknowledge that the skill element sets it apart from other forms of gambling.
Indiana lawmakers have been trying for several years without success to advance an iGaming bill. That effort has been derailed both by a retail casino corruption scandal and by fears of the economic impact iGaming would have on that sector. Nonetheless, there are signs that momentum is shifting in favor of iGaming expansion nationally. Sweeps and, more so, prediction markets may be part of the reason, highlighting to lawmakers that if they don’t provide regulated real-money options, loophole-based products will continue popping up to meet that demand.
