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Lawmakers in Indiana are reopening the debate around how residents place bets and buy lottery tickets. The 2026 legislative session now includes proposals that could reshape both in-person and online gambling across the state.
Good to Know
- Indiana lawmakers are weighing digital lottery sales and online casinos
- House Bill 1078 already cleared a committee vote
- Online gambling could bring sizable new tax revenue
Digital Lottery Bill Advances Out of Committee
A House committee approved House Bill 1078 on Jan. 6 by a 9–3 vote, clearing an early hurdle for legal online lottery sales. The bill would allow residents to buy draw game tickets and instant win games online.
The measure now heads to the full House, then the Senate, before reaching the desk of the governor. Approval would authorize an iLottery designed to update how the Hoosier Lottery reaches players, especially younger residents who prefer digital purchases.
Financial analysts estimate online lottery sales could generate between $30 million and $90 million per year, even if some retail sales soften. States such as Michigan and Pennsylvania reported retail lottery growth after adding digital options.
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Lawmaker View on iLottery Scope
House Bill 1078 sponsor Ethan Manning said the bill focuses narrowly on legal authorization rather than broader structural changes.
Retailer incentives and revenue allocation could surface later, potentially during the 2027 budget session, rather than during the current debate.
Online Casino Language Moves Forward Separately
The same committee that advanced the iLottery bill also voted to insert language related to online casino gaming into House Bill 1052. Lawmakers will take up that proposal at an upcoming public policy meeting.
If approved, iGaming would allow residents to play slots, poker, and other casino games on computers and mobile devices.
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Analysts project online casino gambling could generate up to $186 million in tax revenue within three years, placing Indiana among states that already operate regulated iGaming markets.
Casino Location Debate Adds Pressure
The online gambling push comes alongside discussions about adding or relocating a casino license to areas such as Indianapolis or Fort Wayne. Lawmakers see digital gaming as part of a broader evaluation of how gambling access fits population shifts and consumer habits.
Last year, lawmakers attempted a combined approach through House Bill 1432, which bundled online lottery and online casino gaming into a single proposal. That bill stalled at the committee level.
The current session splits the measures into separate bills, a tactical shift aimed at improving chances of passage.
Lawmakers Voice Caution
Not all legislators support moving quickly. Peggy Mayfield warned against attaching sweeping policy changes to what began as an administrative bill.
She said online gambling policy deserves focused debate rather than being folded into broader legislative packages.
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FAQ
What does House Bill 1078 allow?
The bill authorizes online lottery sales for draw games and instant win tickets.
Is online casino gambling approved yet?
No. Language tied to iGaming sits inside House Bill 1052 and remains under review.
How much revenue could online gambling generate?
Analysts estimate up to $186 million in tax revenue within three years from online casinos.
When could changes take effect?
Both proposals still require passage by the House, Senate, and governor approval.
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