Indiana Advances Online Lottery, Considers Banning Internet Gambling and Sweepstakes Casinos in 2026
Indiana is moving forward with a major gaming expansion proposal, including the legalization of online lottery sales and online gaming, which would be the largest expansion since sports betting was legalized in 2019. The House committee approved a bill to legalize online lottery sales, with estimates suggesting it could generate an additional $30-90 million annually, although some retailers oppose the move due to concerns over profit margins and outdated commission structures. The bill also considers regulating online casino-style games, such as slots and poker, which could bring in $85-$186 million in tax revenue over three years, despite opposition from some casino operators and concerns over gambling addiction. Simultaneously, there is a growing momentum to ban sweepstakes casinos—online games that mimic casino gambling but are currently unregulated. Indiana, Maine, Massachusetts, and Florida are all considering legislation to prohibit or heavily regulate these games, citing concerns over illegal activity, underage participation, and consumer protection. Indiana’s proposed bill focuses on banning dual currency systems used by sweepstakes casinos, while Maine’s bill details operational aspects. Massachusetts combines legalization of real-money online casinos with a sweepstakes ban, and Florida’s legislation expands definitions to include sweepstakes-style games. The debate highlights the tension between expanding legal online gambling options and preventing illegal or unregulated gambling activities, with industry representatives advocating for regulation and oversight to prevent illegal offshore gambling and protect consumers. The legislative process continues in Indiana with further hearings expected, as the state balances revenue opportunities with concerns over gambling addiction and consumer safety.
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