Indiana lawmakers advance online lottery bill while weighing sweepstakes ban

Indiana lawmakers on Tuesday advanced legislation that would allow the state lottery to sell tickets online, while separately considering a ban on certain internet-based “sweepstakes” games that simulate casino gambling.

The Indiana House Public Policy Committee voted 9–3 to send House Bill 1078 to the full House. The bill would permit the Hoosier Lottery to sell draw games and “eInstant” tickets online.

If approved, online sales would likely not begin until summer 2027, as officials line up vendors and implement systems to verify that players are at least 18 years old and located within Indiana.

“When the Hoosier Lottery was created in 1989 … there was really only one way to buy a lottery ticket,” said Jared Bond, the lottery’s external affairs director. “You walked into a retailer with cash, but today Hoosiers utilize their mobile devices for all kinds of different things, like banking and shopping.”

A Legislative Services Agency analysis projects online lottery sales would boost revenues by $314 million to $629 million in the third year, raising annual profits by $31 million to $94 million. The Hoosier Lottery reported $340 million in profits in fiscal year 2025, with sales flat at about $1.7 billion annually over the past five years.

The Hoosier lottery delivered $364 million in surplus revenue to the state in 2024 and has contributed more than $8.1 billion since 1989 to programs including teacher pensions, public safety retirement funds, and vehicle tax relief.

The bill does not authorize online casino games, leaving Indiana’s 13 state-regulated casinos limited to in-person gambling, aside from sports betting. A broader proposal last year combining online lottery and casino gaming stalled amid concerns about harm to brick-and-mortar casinos and increased addiction.

“I strongly feel that i-gaming and i-lottery should be hand in hand, and we’re picking winners and losers,” said Republican Representative Cory Criswell. “I don’t think that’s the way it should work.”

House Bill 1078 would require a voluntary exclusion program for digital lottery games, expanding safeguards that currently apply only to casinos. Proposed measures include age gating, identity verification, transaction monitoring, player-set spending and time limits, and exclusion periods of one year, five years, or a lifetime.

Mental health advocates warned that broader access to online gambling could worsen addiction risks, particularly among young adults.

“Online gambling removes many of the physical safeguards that exist in brick-and-mortar facilities,” said Lisa Hutcheson of Mental Health America of Indiana, citing constant access and targeted advertising. 

A statewide survey found 88% of Indiana adults gambled in the past year, while a U.S. News survey showed nearly 25% missed bill payments due to wagering and 30% carried sports-betting-related debt.

Separately, lawmakers are debating a proposal to ban online “sweepstakes” games that mimic casino-style gambling, including slots, video poker, table games, bingo, and sports wagering. Such games are not explicitly regulated under Indiana law, leaving the state Gaming Commission without oversight authority.

Sweepstakes platforms are estimated to have 200,000 players in Indiana. Eight states have banned the games, and Indiana is among nine considering similar action. No states currently regulate them.

Sweepstakes industry representatives said they would prefer regulation and taxation to an outright ban, warning that prohibition would push players to offshore sites. “If this bill passes and legitimate companies like us are forced to exit, consumer demand will still remain,” said Dan Marks of ARB Interactive.

The committee did not vote on the sweepstakes proposal, which is expected to return in coming weeks. House Bill 1078 now moves to a second reading in the full House.