Published on: December 9, 2025, 12:15 PM.
Last modified on: December 9, 2025, 12:28 PM.
- Online sweepstakes casinos are under increasing legal scrutiny
- Recent legislation in Indiana aims to outlaw contentious websites and applications
Despite ongoing efforts from “social” gaming platforms to gain regulatory recognition, online sweepstakes casinos are increasingly facing challenges.
Earlier this week, New York joined California in implementing bans on sweepstakes casinos that exploit dual-currency systems to permit players to win real money through unregulated internet slots and table games. Additional states, including Connecticut, Idaho, Montana, New Jersey, and Washington, have enacted similar bans, while ten others have instructed platforms such as Chumba, Stake, and WOW Vegas to halt operations.
Indiana might follow suit soon.
Indiana Representative Ethan Manning (R-Cass) has introduced a bill addressing various administrative law topics. House Bill 1052 proposes criminalizing sweepstakes casinos that “utilize a dual-currency payment system that allows players to exchange currency for cash prizes, cash awards, or cash equivalents that mimic casino-style gaming, including slot machines, video poker, table games, lottery games, bingo, and sports betting.”
Those found guilty under this proposed legislation would face civil fines up to $100,000 per violation. HB1052 is currently under review by the Public Policy Committee.
Manning’s proposal closely parallels the New York law enacted last Friday by Governor Kathy Hochul (D).
Recent Setbacks
Just a few months ago, sweepstakes casinos were operational in nearly every state. However, their influence and market presence have significantly diminished due to a series of legal and regulatory challenges.
In conjunction with state crackdowns, Google has revised its advertising policies to prohibit sweepstakes casinos from promoting their services on Google Search and YouTube platforms.
Sweepstakes casino operators argue they provide online promotions similar to how retailers offer customers a chance to spin a prize wheel for discounts or rewards. They contend that players purchase credits for prizes through a secondary currency known as sweeps coins, which cannot be “cashed out” in the traditional sense but must be “redeemed.” Unlike the free sweepstakes gameplay, these coins can be exchanged for cash.
Critics assert that these promotions are cleverly disguised efforts to bypass state gambling regulations.
Leading the Charge
Since becoming a member of the Indiana General Assembly in 2018, Manning has emerged as a prominent advocate for gaming legislation. Serving as the chair of the House Public Policy Committee and participating on the Rules and Legislative Procedures Committee, Manning was instrumental in advocating for iGaming legalization earlier this year.
In contrast to sweepstakes casinos, Manning’s iGaming proposal would have placed regulatory control of online casinos under the Indiana Gaming Commission, requiring these platforms to affiliate with existing in-person casinos within the state.
Moreover, alongside the sweepstakes legislation, Manning’s Public Policy Committee will review a proposal to issue a casino license for Allen County, as Full House Resorts aims to transfer its Rising Sun Casino to Fort Wayne.