Virginia: From Ban to Homework
Virginia’s SB 579 started out as a straightforward ban. The bill would have added sweepstakes gaming to the state’s definition of illegal gambling and slapped civil penalties of $10,000 to $100,000 per violation on operators and promoters.
It defined an “online sweepstakes game” as any dual-currency online contest that simulates casino-style games, lottery games, or sports betting and awards prizes based on chance. It was clear that the law was written squarely with modern sweepstakes casinos in mind.
Then the Senate Courts of Justice Committee hit pause.
Instead of advancing the ban, lawmakers rewrote the bill entirely. The new version directs the Virginia Lottery Board to form a working group, which includes representatives from the sweepstakes and social gaming industry, to study the issue and report back by December 1, 2026. Lawmakers will revisit the topic in 2027.
Sen. Bryce Reeves, the bill’s sponsor, laid out his reasoning during the hearing. He said sweepstakes games are often confused with legal iGaming and other forms of online gambling, and with the landscape changing so quickly, Virginia needs clearer definitions before taking a hard stance.
The committee voted 14–1 to carry the issue over.
Virginia isn’t endorsing sweepstakes, and it’s not giving them a free pass either. Lawmakers are slowing down because they want the rules to be airtight before drawing a line that could reshape the state’s gambling market.
Except… There’s a Twist
While one bill slowed down, another moved forward.
SB 118, a separate proposal to legalize online casino gaming in Virginia, cleared the Senate Finance and Appropriations Committee by an 8–6 vote. That bill would allow in-state casinos to partner with online operators and run up to three iCasino platforms.
And buried inside it is language that would make sweepstakes casinos illegal if they operate without an iGaming license. It would also give regulators clear authority to issue cease-and-desist orders and seek court injunctions against unlicensed platforms.
So while one proposal sends sweepstakes off for study until 2027, another could effectively squeeze them out sooner by creating a licensed online casino system that leaves no room for unapproved operators.
That tension makes Virginia one of the most interesting states to watch right now.
Indiana: No Study, Just a Decision
Now flip the map.
In Indiana, lawmakers are moving in the opposite direction.
HB 1052, a bill to ban sweepstakes gaming, already passed the House 87–11. This week, it advanced out of its first Senate committee by an 8–0 vote.
A few lawmakers tried to shift the bill toward regulation instead of an outright ban. Even the Senate sponsor, Ron Alting, admitted he would have preferred a system that taxed and regulated sweepstakes platforms. But he said the feedback he received was loud and clear: regulation wasn’t going to fly. Efforts to amend the bill in that direction fell short.
So the ban stayed in place
The bill was softened in one key way however: penalties were downgraded from criminal charges to civil violations. That means no jail time, but operators could still face fines, enforcement actions, and forced exits if the bill becomes law.
During the debate, the Indiana Gaming Commission added an interesting layer. Officials said sweepstakes casinos aren’t clearly illegal under current state law, which is exactly why they support passing the ban. In their view, the law needs to be explicit.
While Virginia is asking for more time to define the issue, Indiana has decided to define it now.
What This Means for Operators
For sweepstakes platforms, the map keeps shifting.
In Virginia, there’s breathing room for now, unless the iCasino bill changes the equation sooner. In Indiana, the runway is getting shorter.
And zoom out far enough, and you’ll see this isn’t a clean national trend in one direction. Some states are studying the issue. Some are banning it outright. Others are trying to fold sweepstakes into broader online casino systems. A few are raising penalties. It’s uneven, state by state, and it’s evolving quickly.
Blaise Luis
