New Indiana Gambling Bill Puts Online Casinos & Lottery Back In Play
The 2026 legislative session could change the way residents in Indiana gamble, both in person and online.
Indiana lawmakers are pushing to expand online gambling, with proposals to legalize both digital lottery sales and online casinos this year.
If approved, it would mark the biggest step forward for Indiana’s gambling industry since sports betting was legalized in 2019.
Digital Lottery Bill: House Bill 1078 Passes By 9-3 Vote
On Jan. 6, a House committee passed House Bill 1078 to legalize online lottery sales, including draw games and instant win tickets. The digital lottery bill passed by a 9-3 vote but it still needs to pass the full House, then the Senate, and finally be signed by the governor before it becomes law.
The iLottery is intended to modernize the Hoosier Lottery and attract younger players who increasingly buy tickets online.
Analysts estimate online sales could generate $30 million to $90 million annually, even if retail sales decline. Other states that have launched digital lotteries, such as Michigan and Pennsylvania, have seen retail sales grow alongside online sales.
House Bill 1078’s sponsor, Rep. Ethan Manning, says the immediate goal is simply to authorize online lottery sales, with retailer incentives potentially addressed during the 2027 budget session.
Adding Online Casino Gambling To House Bill 1052
The same committee that voted to pass the iLottery bill also proposed including language that could legalize online casino gaming into House Bill 1052, which will be voted on at the next public policy meeting.
Online casino gaming, or iGaming, would allow residents to play slots, poker, and other casino games on computers or phones
Online gambling in Indiana could generate up to $186 million in tax revenue within three years, according to financial analysts.
The push comes as the state considers adding or relocating a casino license to the Indianapolis or Fort Wayne areas.
Last year, lawmakers proposed House Bill 1432, which combined both online casino gambling and online lottery games into one bill. The combined bill failed to advance past the committee stage last session, but lawmakers are approaching it differently this year, dividing the measures into two separate bills this session.
Supporters stress that this step would modernize Indiana’s gaming landscape and provide new revenue streams for the state. However, Rep. Peggy Mayfield raised concerns about adding such major policy changes into a routine administrative bill, emphasizing that online gambling deserves a thorough discussion.
With House Bill 1052 still in the early stages, the next few weeks will be crucial in determining whether Indiana joins other states in fully embracing online casinos and digital lottery sales.
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