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Indiana Bill Would Ban Online Sweepstakes

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A final vote in the Indiana legislature on a measure that would ban online dual-currency sweepstakes is looming.

Both chambers have agreed to identical versions of a bill that would follow the lead of other states in prohibiting online sweepstakes casinos from operating in the Hoosier State.

Bipartisan Support

It isn’t often that we see a bill in which both parties agree, but an online sweepstakes casino ban appears to be in Indiana’s legislative crosshairs after a House bill passed 86-12 and a Senate version cleared the upper chamber 37-8 earlier this month.

It didn’t take long for a joint conference committee meeting of members from the Indiana House and Senate to agree on a final bill that would need another vote in both chambers before the legislation breaks on March 14th.

Should Indiana Governor Mike Braun veto the bill, a simple majority in both the House and Senate would override that veto and pass the measure.

Bill Targets Dual-Currency

The $100,000 civil penalty for any operator conducting dual currency online casino sweepstakes would likely deter any abuse of the policy.

Dual currency is the preferred method of circumventing state gaming laws by allowing users to purchase tokens that can be used in online casino games, and any winnings can be converted into cash.

The tokens used by online sweepstakes companies create the loophole exploited by those entities and allow them to circumvent state gaming laws unless a bill is specifically constructed to address them and ultimately ban the practice.

The final anti-sweepstakes bill, which would go into effect on July 1st, grants the Indiana Gaming Commission authorization to take action against unlicensed online sites that simulate lottery-style or casino-style games, including:

  • Slots
  • Video poker
  • Bingo
  • Sports wagering

Trending Sweepstakes Opposition

Should Indiana pass the legislation to ban sweepstakes from operating within its boundaries, it would become the seventh state to do so, joining California, Connecticut, Montana, Nevada, New Jersey, and New York.

Similar laws are being debated in Tennessee, Maryland, and Maine, while Idaho, Washington, Michigan, and Louisiana already have existing laws on the books to ban the practice of online casino sweepstakes.

Aside from Indiana, Tennessee appears to be the closest state toward enacting anti-sweepstakes legislation, as Representative Scott Cepicky’s House Bill 1885 has been advanced to the House Departments & Agencies Subcommittee, while its Senate companion bill, Senate Bill 2136, has been assigned to the Senate Commerce and Labor Committee.