A provision buried in Indiana's HB1052 creates steep penalties for a common promotional tactic—and it takes effect July 1, 2026.
Most gym and fitness studio owners in Indiana don't realize that a new state law—tucked into a bill about administrative procedures—could expose their business to a $100,000 civil penalty if they're running certain kinds of online promotional games.
That provision is in HB1052, a bill addressing various administrative law matters. Section 15 of the bill adds language to Indiana Code 4-33-10-7(b) that creates a civil penalty for operating internet-based sweepstakes or promotional games that use what regulators call a "dual-currency system"—essentially games that simulate casino-style gaming or lottery mechanics using both real money and in-game currency.
If your studio runs online promotional games—whether it's a digital scratch-off card, spin-the-wheel promotion, or points-based game that mimics gambling mechanics—you need to understand the line the law is drawing. The penalty applies specifically to games that:
The penalty is $100,000 per violation. That's not a fine you can absorb as a cost of doing business—it's the kind of penalty that can force a difficult choice about whether to continue a promotional program.
This matters because many fitness businesses use online games and sweepstakes as customer acquisition and retention tools. A drawing for free memberships, a digital game that awards class packages, or a points-based reward system that lets members "cash in" virtual credits can all be legitimate marketing. But if the game mechanics cross into simulating gambling—and especially if real money is involved in any way—you're now operating under a much stricter legal framework.
The provision becomes effective July 1, 2026. That gives business owners time to audit their current promotional programs and make changes if needed, but it's not indefinite. If you're currently running an online sweepstakes or game with dual-currency mechanics, you should begin reviewing it now to understand whether it falls under this definition.
Review any online games, sweepstakes, or promotional programs your studio operates. If they involve internet-based play, virtual currency, and mechanics that resemble gambling, consult with legal counsel about whether they comply with the new standard. The law is specific about the penalty structure, but the practical application to your particular promotion may require professional guidance.
The intent of HB1052's Section 15 is clear: Indiana is restricting a particular business model. Understanding that restriction now—before July 1, 2026—lets you make informed decisions about your marketing strategy without legal exposure.
Source: Indiana HB1052, Section 15, IC 4-33-10-7(b), Pages 11-12. Effective July 1, 2026.