A proposed ban on online sweepstakes casinos in Indiana has exposed deep divisions within the state over whether these online games are currently illegal under the state's existing gambling laws. The Indiana Gaming Commission is urging lawmakers to pass House Bill 1052, arguing that such online casino-style games "offer a form of gambling with no regulation, licensing, or taxation."
However, proponents of sweepstakes casinos in the state argue that they should be regulated, not banned, as they have been operating legally in Indiana for over a decade. They claim that these online games offer free play options and therefore fall outside the definition of "gambling devices" under Indiana law.
But experts say that this interpretation is misguided. According to Indiana's existing laws, including the Indian Gaming Control Division's FAQ on internet sweepstakes casinos, these games are considered prohibited "gambling devices". The Indiana Court of Appeals has also ruled in favor of this stance, rejecting arguments that free play options make online sweepstakes casino games legal.
In fact, Indiana's definition of gambling prohibits any form of gambling not specifically authorized by law. Online sweepstakes casinos fall under the definition of a "professional gambling" over the internet, which is explicitly prohibited under the state's laws.
The Indiana Attorney General has also concluded that virtual slot machines, card games, and other online games of chance are considered "gambling devices" under Indiana law because they meet several definitional requirements. The attorney general noted that an internet-gambling Hoosier who plays these games from their home or office in Indiana is doing the same thing as wagering over the telephone.
The proposed ban would grant the Indiana Gaming Commission expanded enforcement powers, including the ability to levy civil penalties of $100,000 against any operator or individual who knowingly uses the internet to conduct an illegal sweepstakes game. Without such legislation, it is likely that sweepstakes casino platforms will continue to skirt existing Indiana law based on a flimsy and judicially rejected legal premise.
Indiana is not alone in its stance on online sweepstakes casinos. Several other states have enacted statutory bans against these games, with operators quickly exiting the market following the enactment of new laws. House Bill 1052 aims to close this loophole and ensure that Indiana's existing laws are enforced more effectively.
However, proponents of sweepstakes casinos in the state argue that they should be regulated, not banned, as they have been operating legally in Indiana for over a decade. They claim that these online games offer free play options and therefore fall outside the definition of "gambling devices" under Indiana law.
But experts say that this interpretation is misguided. According to Indiana's existing laws, including the Indian Gaming Control Division's FAQ on internet sweepstakes casinos, these games are considered prohibited "gambling devices". The Indiana Court of Appeals has also ruled in favor of this stance, rejecting arguments that free play options make online sweepstakes casino games legal.
In fact, Indiana's definition of gambling prohibits any form of gambling not specifically authorized by law. Online sweepstakes casinos fall under the definition of a "professional gambling" over the internet, which is explicitly prohibited under the state's laws.
The Indiana Attorney General has also concluded that virtual slot machines, card games, and other online games of chance are considered "gambling devices" under Indiana law because they meet several definitional requirements. The attorney general noted that an internet-gambling Hoosier who plays these games from their home or office in Indiana is doing the same thing as wagering over the telephone.
The proposed ban would grant the Indiana Gaming Commission expanded enforcement powers, including the ability to levy civil penalties of $100,000 against any operator or individual who knowingly uses the internet to conduct an illegal sweepstakes game. Without such legislation, it is likely that sweepstakes casino platforms will continue to skirt existing Indiana law based on a flimsy and judicially rejected legal premise.
Indiana is not alone in its stance on online sweepstakes casinos. Several other states have enacted statutory bans against these games, with operators quickly exiting the market following the enactment of new laws. House Bill 1052 aims to close this loophole and ensure that Indiana's existing laws are enforced more effectively.