Key Moments:
- Indiana’s House Bill 1078 cleared committee with a 9–3 vote, moving forward without provisions for online casino gaming.
- HB 1078 introduces online draw games and eInstant lottery products, but it excludes digital couriers and mandates a voluntary exclusion program.
- Casino operators and some lawmakers voiced frustration, highlighting missed opportunities for broader digital gaming growth.
Legislative Developments for Online Lottery Sales
Indiana is moving to modernize its lottery system. Recently, House Bill 1078 received committee approval with a 9–3 vote. The bill, presented by House Public Policy Committee Chair Ethan Manning, allows the Indiana Lottery Commission to offer online draw games and eInstant lottery products. However, it does not include online casino gaming. Consequently, the bill now advances to the House floor.
Features and Limitations of HB 1078
HB 1078 restricts participation in iLottery to individuals aged 18 or older. Moreover, it prohibits the use of digital lottery couriers. The legislation also establishes a voluntary online exclusion program. Unlike last year’s initiative, the 2026 version removes online casino gaming and the planned two percent revenue allocation to support retail lottery sellers. According to Manning, excluding the iCasino element increases the bill’s chances of passage during Indiana’s shortened legislative session, ending in mid-March.
Mixed Reactions to Online Gaming Separation
Some lawmakers expressed disappointment over the bill’s limited scope. Representatives Steve Bartels and Cory Criswell argued that separating online lottery and online casino efforts weakens the state’s long-term gaming strategy. In addition, the Casino Association of Indiana urged legislators to reconsider, emphasizing casino operators’ interest in regulated online gaming.
Nevertheless, both Manning and Bartels suggested that starting with the iLottery program could pave the way for iCasino consideration in future sessions. Manning stated, “If we find the sky isn’t falling, iGaming legislation could return later.”
Jared Bond, Hoosier Lottery Director of External Affairs, added that Brightstar Lottery currently manages the retail lottery. Still, the Lottery Commission retains the discretion to select an online provider under existing law.
Restrictions on Slot-Style Games
HB 1078 prevents iLottery offerings from imitating casino-style slot machines. The bill prohibits digital lottery games from replicating key visual elements of slots. Bond explained, “It modernizes how lottery products are sold, not what products are sold.” He emphasized that, although visual features face restrictions, the Lottery Commission decides which eInstant games reach the market.
Broader Legislative Landscape for Gaming in Indiana
The iLottery discussion fits into a wider conversation about state gaming policy. In the first formal hearing of 2026, House Bill 1052 was addressed. This bill proposes banning dual-currency sweepstakes casinos, which operate outside traditional gambling regulations. Lawmakers cited concerns over consumer protection, taxation, and regulation. Although the Indiana Gaming Commission supports a ban, some, like Rep. Jim Lucas, questioned outlawing an industry not yet violating state law. Instead, Lucas recommended measured regulation.
Emerging Casino Legalization Efforts and Public Sentiment
Efforts to expand casino gaming continued in December with House Bill 1038. This bill directs the Indiana Gaming Commission to accept applications for a casino license in Allen County. Fort Wayne is the proposed host, with a possible relocation of the Rising Star Casino from Ohio County.
Public opinion may pose challenges. A November survey, commissioned by the National Association Against iGaming, found that 58% of Indiana voters opposed legalizing online casinos when fully informed. Opposition rose to 67% among respondents warned about social and economic risks observed in other states.
Summary Table: Key Features of HB 1078
| Feature | Details |
|---|---|
| Online Lottery Authorizations | Online draw games and eInstant products |
| Player Age Restriction | 18 years and older |
| Digital Courier Services | Prohibited |
| Revenue Sharing with Retailers | Removed |
| Online Casino (iGaming) Provision | Not included in current bill |
| Slot-Style Games | Cannot mimic casino slots |
- Author
Daniel Williams
