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Penalties for operating a sweepstakes casino could eclipse $100K based on newly passed law
Real money online casino legislation placed on back burner due to recent political scandal
Window for passing legislation to allow online casinos closed on March 14 but residents of Indiana can still access online casinos based offshore.
If you happen to play on the likes of Chumba Casino, McLuck, Spree and a host of other sweepstakes casinos from the great state of Indiana, your luck is about to run out on July 1, 2026.
Unlike a real money online casino, sweepstakes - or social casinos - is an online platform that allows users to play casino-style games, including slots, bingo, table games, and even live casino games, using virtual currency instead of real money. These types of online casinos rely on additional real money purchases once the free play component is exhausted. In contrast, real money online casinos require a small deposit that can be increased through wins. Free play and cash bonuses are typically offered as well.
HB 1052 actually doesn't pertain to real money online casinos as the state is looking to legalize iGaming in the future. Instead it hones in on the virtual currency and sweepstakes specific model. It defines and establishes civil penalties for conducting a "sweepstakes game".
And these penalties can be rather harst.
The Indiana Gaming Commission has the authority to impose civil penalties of up to $100,000 per violation against any operator or individual who knowingly offers sweepstakes games to Indiana residents.
Real Money Online Casino Gambling Regulation on the Back Burner
Indiana once considered pushing through legislation that would allow for real money online casinos. That all changed in late 2024 following a political scandal that ended up shelving such plans.
In July of that year, a former Indiana lawmaker was sentenced to twelve months behind bars for admitting to pushing legislation favorable to an Indiana casino company in exchange for the promise of a future job with the company worth at least $350,000 a year.
Sean Eberhart, a Republican, was also ordered to pay a $25,000 fine as well as $60,000 in restitution.
Eberhart pleaded guilty on Nov. 28 of that year to one count of conspiracy to commit honest services fraud, a federal felony that carried a sentence of up to five years in prison, a fine of up to $250,000 and up to three years of probation.
A Spectacle Entertainment executive identified as "Individual A" conspired with other unnamed individuals to deprive the residents of Eberhart's district of honest services through bribery and concealment, according to the complaint.
Federal prosecutors also identified Rod Ratcliff, one of the state's most powerful casino executives, as a conspirator in a scheme to illegally funnel casino cash to a former state senator's congressional campaign.
Small was never implicated in this matter. In September of 2024, Small left his position to become the Head of Legal & Government Affairs at Fliff, a sports prediction app that operates as - you guessed it- a sweepstakes-style sportsbook rather than a traditional gambling platform.
Though lawmakers contemplated passing an iGaming measure this year, the 2026 legislative session ended on March 14.
- Gilbert Horowitz, Gambling911.com
