A provision buried in Indiana's HB1052 imposes steep penalties on a common promotional gaming model—and most restaurant owners don't know it's coming.
Most Indiana restaurant owners have never heard of HB1052. But if your business runs or is considering an internet-based sweepstakes or promotional game—especially one that uses a dual-currency system or simulates casino-style gaming—this bill contains a provision that directly affects your bottom line.
Effective July 1, 2026, Indiana law will impose a $100,000 civil penalty per violation on any small business operator running an online sweepstakes game that mimics gambling mechanics. The provision is found in Section 15 of HB1052, codified as IC 4-33-10-7(b), on pages 11-12 of the bill text.
The law targets a specific business model: online promotional games that use two types of currency (typically real money and virtual play credits) and simulate the mechanics of casino games or lotteries. These games have been used by restaurants, bars, and other small businesses as customer engagement tools and revenue generators.
Under the new rule, operating such a game—even once—can trigger a $100,000 civil penalty. Multiple violations compound the exposure. There is no grace period, no warning threshold, and no sliding scale based on business size.
The penalty applies to the business operator, not the game platform provider. If you're the owner running the game, you're liable.
This provision primarily affects:
Restaurants and bars currently using online sweepstakes or promotional gaming as a customer retention or revenue tool.
Small business owners considering adding such a game to their operation.
Any establishment with an internet-connected gaming or promotional system that uses a dual-currency model or simulates casino or lottery mechanics.
If your business does not operate online sweepstakes or promotional games, this provision does not apply to you.
If your restaurant or business currently operates an online sweepstakes game with these characteristics, you have until July 1, 2026, to discontinue it or restructure it to comply with Indiana law. Waiting until after the effective date exposes you to civil penalties.
Review your current promotional gaming setup. If you're unsure whether your game falls under this definition, consult with a business attorney familiar with Indiana gaming law. The distinction between a compliant promotional game and a prohibited sweepstakes game can be technical.
If you're considering adding a promotional game to your business, understand the legal landscape before implementation. The cost of compliance now is far lower than the cost of a $100,000 violation later.
Indiana's restaurant and hospitality trade associations have resources available to help members understand HB1052's full impact on their operations.
Source: HB1052, Section 15, IC 4-33-10-7(b), pages 11-12; effective July 1, 2026.