On Tuesday, Indiana legislators progressed a bill that would permit the state lottery to offer online ticket sales, while also evaluating a potential prohibition on certain online “sweepstakes” games that resemble casino gambling.
The Indiana House Public Policy Committee voted 9-3 to advance House Bill 1078 to the broader House. This legislation would enable the Hoosier Lottery to provide both draw games and “eInstant” tickets for purchase online.
If enacted, the implementation of online sales is expected to commence no sooner than summer 2027, allowing time for officials to set up vendors and establish systems to confirm that players are at least 18 years old and physically present in Indiana.
“When the Hoosier Lottery was established in 1989, there was essentially one method to acquire a lottery ticket,” stated Jared Bond, the lottery’s external affairs director. “You would go to a retailer with cash, but nowadays, Hoosiers use their mobile devices for various purposes, including banking and shopping.”
Analysis by the Legislative Services Agency anticipates that online lottery sales could generate an additional $314 million to $629 million in revenue by the third year, potentially increasing annual profits by $31 million to $94 million. The Hoosier Lottery reported $340 million in profits during fiscal year 2025, with sales remaining steady at around $1.7 billion per year over the last five years.
The Hoosier Lottery contributed $364 million in surplus revenue to the state in 2024 and has delivered over $8.1 billion since its inception in 1989 to various programs, including teacher pensions, public safety retirement funds, and vehicle tax relief.
Importantly, the new bill does not authorize online casino games, ensuring that Indiana’s 13 state-regulated casinos continue to be limited to in-person gambling, apart from sports betting. A more extensive proposal from last year combining online lottery and casino gaming was halted due to concerns regarding potential negative impacts on land-based casinos and heightened addiction.
“I strongly believe that i-gaming and i-lottery should coexist, and we are establishing winners and losers,” expressed Republican Representative Cory Criswell. “I don’t think that’s the right approach.”
House Bill 1078 would enforce a voluntary exclusion program for digital lottery games, broadening the protective measures that are currently only applicable to casinos. Proposed safeguards include age verification, identity checks, transaction monitoring, player-determined spending and time limits, along with exclusion durations of one year, five years, or even lifetime bans.
Mental health advocates cautioned that wider access to online gambling could heighten addiction risks, particularly among younger adults.
“Online gambling removes many of the physical safeguards present in traditional venues,” remarked Lisa Hutcheson from Mental Health America of Indiana, emphasizing issues like constant accessibility and targeted marketing.
A recent statewide survey indicated that 88% of Indiana adults participated in gambling within the past year, while a U.S. News survey revealed that approximately 25% of participants had missed bill payments due to wagering, with 30% accumulating sports betting-related debt.
In a separate discussion, lawmakers are contemplating a ban on online “sweepstakes” games that imitate casino-style gambling, such as slots, video poker, table games, bingo, and sports betting. These games currently lack explicit regulation under Indiana law, thus leaving oversight in the hands of the state Gaming Commission.
Estimates suggest that sweepstakes platforms attract around 200,000 players in Indiana. Eight states have already banned these games, and Indiana is one of nine considering similar restrictions. Currently, no state has regulatory oversight of these activities.
Representatives from the sweepstakes industry argued that they would prefer regulation and taxation rather than an outright prohibition, warning that a ban could drive players to offshore alternatives. “If this bill passes and legitimate companies like ours are forced out, consumer demand will persist,” cautioned Dan Marks of ARB Interactive.
The committee did not take a vote on the sweepstakes proposal, which is anticipated to re-emerge in the coming weeks. House Bill 1078 will now proceed to a second reading in the full House.