Indiana's governor signed HB 1052, officially making lottery casinos illegal, with the ban taking effect on July 1. However, behind this legislative victory was a fierce debate over "prohibition" versus "taxation"—the regulatory taxation plan pushed by the industry alliance ultimately failed, and the prohibition faction won by an overwhelming majority. In plain terms, lawmakers chose prohibition over taxation. Want to know how different states in the US are tackling grey gambling platforms? PASA's official website continues to track legislative dynamics.
Prohibition faction wins: Overwhelming majority of 87-11 and 37-8
HB 1052 passed in the Indiana House of Representatives with an overwhelming majority of 87-11, and in the Senate with 37-8, granting the Indiana Gaming Commission new enforcement powers to impose civil fines of up to $100,000 on non-compliant operators. The bill specifically targets online platforms that use dual or multiple currency payment systems, simulate slot machines, table games, bingo, lotteries, and sports betting, filling a previously unenforceable gap due to vague legal definitions. State lotteries and peer-to-peer competitive poker are excluded from the ban.
Taxation faction silenced: The failure of the Social Gaming Alliance's lobbying
During the legislative process, the Social Gaming Leadership Alliance pushed for a regulatory taxation scheme, advocating for age verification, responsible gaming standards, and data privacy protection to both protect consumers and generate tax revenue. The alliance pointed out that hundreds of thousands of Indiana residents participate in such games, which could bring in tens of millions of dollars in tax revenue annually. However, this proposal did not gain enough support and was ultimately overwhelmed by the prohibitionist stance. The alliance's managing director expressed disappointment at the passage of the bill but still expressed willingness to continue working with lawmakers to seek a regulatory framework.
National perspective: Three coexisting legislative models
Indiana's prohibition model is not unique, as states like Connecticut and Montana have implemented similar bans. Meanwhile, other states are exploring different paths: Tennessee defines lottery gambling as a consumer protection issue, falling under the jurisdiction of the Consumer Protection Act; Oklahoma plans to expand the scope of gambling laws through SB 1589, introducing criminal penalties for service providers. These three models—administrative bans, consumer protection, and criminal penalties—are outlining the legislative map of how US states are addressing grey gambling. Which model will prove more sustainable remains to be seen.
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel: https://t.me/pasa_news
Original in-depth gambling channel: https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
