Deputy Editor
Indiana needs only the governor’s signature to pass a ban on sweepstakes casinos.
Importantly, the rule will only affect casinos and other pure gambling products. Poker players needn’t worry, as lawmakers included a last-minute carveout that spares “peer to peer skill-based poker games.”
As for the sweepstakes online casino ban, both Indiana chambers passed it easily. The Indiana House passed it, 68-21, while it sailed through the Senate, 46-4.
As in many other states, lobbying by the Social Gaming Leadership Alliance (SGLA) has fallen on mostly deaf ears. The SGLA has been pushing for legalization and regulation while touting a rebrand, terming sweepstakes games “Social Plus.”
If Gov. Mike Braun signs the bill, it will become law, with the ban taking effect July 1. If Braun does not sign the bill, it still becomes law after seven days unless he issues a veto.
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Details of Indiana’s Sweepstakes Ban
The bill banning sweepstakes casinos in Indiana includes a host of other legislative minutiae, dealing with everything from horse racing licenses to permits for selling beer and wine. As for the section detailing the sweeps ban, here is the language the Indiana legislators settled on for defining such games:
- Available on the internet
- Accessible on mobile phone, computer, or similar device
- Utilizes dual-currency or multi-currency system of payment allowing the player to exchange currency for a cash prize, cash award, cash equivalents, or a chance to win cash prizes, awards, or equivalents
- Simulates lottery games or casino-style gaming including slot machines, video poker, table games, bingo, or sports wagering
A penalty of $100,000 is established, applicable to anyone who operates an online sweepstakes game in Indiana or serves a player located in Indiana.
Indiana Joins Growing List of States Banning Sweeps
Assuming the governor either signs or takes no action, Indiana joins the growing list of states issuing sweepstakes gambling bans.
Last year, PokerScout projected that the addressable market for sweepstakes operators would drop by about 30%, once bans in California, New York, and a handful of other states took effect.
Indiana, the 17th-most populous state with about 7 million residents, takes another chunk out of that. Additionally, Kentucky and Tennessee have joined the group of states evicting operators with cease-and-desist letters. The Mississippi Senate passed an anti-sweeps bill in early February, though there’s been no further movement there.
Meanwhile, states like Iowa, Oklahoma, and Florida are taking a closer look at the industry. Iowa appears to be the closest to acting, as the Senate there has unanimously approved a bill that would allow state regulators to take action, such as issuing cease-and-desists, against sweeps and offshore operators. Currently, regulators say they can only sanction entities with licenses in Iowa.
Image credit: Daniel Schwen/Wikimedia Commons (license)
