Indiana became the first state this year to ban sweepstakes casinos. Gov. Mike Braun (R) signed a bill into law last week prohibiting the operators from doing business in the state.
Unlike other states enacting similar legislation, however, HB1052 noted that “peer-to-peer skill-based poker games” are excluded. In other words, sweepstakes-style poker rooms are legal.
As a result, popular operators like Global Poker, ClubWPT Gold, and Clubs Poker remain an option for Indiana poker players.
Lawmakers Threw Significant Support Behind Bill
Lawmakers in both chambers of the legislature passed the bill in February. The bill passed with overwhelming majorities voting in favor of passage. Legislators gave the Indiana Gaming Commission the authority to impose civil penalties up to $100,000 on sweeps operators that continue operating in Indiana.
Like other states, the ban describes a dual or multi-currency model as the defining characteristic of sweepstakes casinos. Then, operators must redeem those currencies for cash or prizes.
In response to an increasing number of bans, sweepstakes operators argue their platforms are more akin to traditional mobile gaming. Those players are not required to pay anything to play. Additionally, the industry broadly favors regulation opposed to bans. Stakeholders argue the games can provide more revenue to states.
The Social Gaming Leadership Alliance (SGLA) has proposed a regulatory framework that includes strict age verification, data privacy, and responsible gaming protections. So far, several states have balked at that plan in favor of outright bans.
SGLA Disappointed In Ban, But Keep Hopes High
SGLA managing director Sean Ostrow believes that despite the Indiana legislation getting signed into law, some lawmakers are starting to agree there could be another way to approach the issue.
“We are disappointed that HB 1052 has become law but are grateful to the many Indiana lawmakers who engaged thoughtfully on the merits of regulating this long-standing industry,” Ostrow said.
“Despite the outcome, the legislative record shows meaningful bipartisan support for a smarter approach that embraces innovation and economic growth. We look forward to continuing to work with Indiana lawmakers on a regulatory framework for digital entertainment that protects the hundreds of thousands of Hoosiers that enjoy Social Plus games, while generating tens of millions in annual tax revenue.”
The industry also pushed for regulation in California, but the state ultimately passed a ban that went into effect on Jan. 1.
New Jersey also approved a law banning sweeps operators in August. Florida is considering a similar move, and Mississippi and Tennessee have also seen bills put forward.
