Could Indiana Legalize Online Casino Gambling?

Multiple bills have been filed in the Indiana legislature, potentially setting up legalization of online casinos in Indiana — while simultaneously blocking sweepstakes casinos from operating in the Hoosier State.

Indiana Rep. Ethan Manning (R-Logansport) has filed HB 1052 and HB 1078, learning a lesson from last year’s legislative session. Last year, Manning tried to package together his ideas on online gambling into one bill, which was deemed too detailed to make it to the full Indiana House.

This time, Manning broke online lottery sales into HB 1078, while putting a ban on sweepstakes casinos and potential legalization of real money casinos into HB 1052. Additionally, HB 1038, sponsored by Rep. Craig Snow (R-Warsaw) includes language that could allow brick and mortar casinos in the Indianapolis and Fort Wayne areas.

Currently, neither of Indiana’s two largest cities sit within 30 miles of a retail casino, locking the state out of potential customers unwilling to drive to either Anderson, Shelbyville or Terre Haute.

Sweepstakes Casinos Might See Dwindling Market – Or Outright Ban

According to Manning, roughly 200,000 Hoosiers play sweepstakes casinos in Indiana. However, the state sees no revenue from them, because the casinos aren’t licensed by the state. Manning believes that if Indiana legalized real online casinos, sweepstakes casinos would see their market share dwindle because most players would shift over to standard casinos.

As it’s written, HB 1052 would further codify parts of Indiana Code 35-45-5-3 (b), which makes it illegal to offer any kind of online casino-style gambling in Indiana’s borders. The language would permit online casino gaming that was regulated by the state, which sweepstakes casino operators have suggested they’re open to discussing.

Already, eight states have either banned sweepstakes casinos outright or passed legislation making it virtually impossible for them to operate. Per Natalie Huffman, general counsel of the Indiana Gaming Commission, sweepstakes casinos are currently not technically breaking Indiana law. That would change if HB 1052 passes.

Neighbors Leading Push for Changes to Indiana Online Gambling

As has happened in other states, Indiana’s neighbors have given multiple reasons for Hoosier State lawmakers to seek changes. The Hoosier Lottery has been asking the Indiana legislature to legalize online lottery sales since 2022, when the lottery learned that it could not begin online sales without legislative approval.

According to Rep. Kyle Miller (D-Fort Wayne), several residents of Indiana have already chosen to gamble in other jurisdictions, whether that’s in legal neighboring states or less-reputable offshore websites. In his own city, it’s easier for Fort Wayne residents to drive 55 minutes to Coldwater, Mich. to play on their mobile devices than to drive 90 minutes to Four Winds Casino in South Bend. In each case, that’s potential tax revenue being put into Michigan’s coffers instead of Indiana’s.

Online lottery sales are already legal in Illinois and Kentucky as well as Michigan. Analysis of last year’s legislation suggested that legalizing online lottery sales in Indiana could result in up to $185 million in tax revenue for Indiana.

HB 1078 passed through committee on a 9-3 vote, with the objections coming from legislators who believe lottery sales and online casino gambling in Indiana should be treated the same. HB 1052 remains under debate.

Online Gambling Won’t Arrive in 2026

Currently, Michigan is the only neighboring state to offer online casinos. However, Illinois, Kentucky and Ohio all saw bills introduced to bring casino gambling to their states in 2025.

If Indiana is to make a change in 2026, it would have to do so by February 27, as even-year sessions only last 10 weeks in Indiana. Any change wouldn’t take effect until 2027, as the IGC would need time to hire people and set up infrastructure to ensure only customers of legal age can purchase lottery tickets and play casino games online.