Indiana’s latest effort to legalize online lottery sales has come to an end for the 2026 legislative session. House sponsor Rep. Ethan Manning announced that he has withdrawn HB 1078 from the agenda, acknowledging that there wasn’t sufficient support from lawmakers. Manning described the challenge as not stemming from details or amendments but from a general hesitance toward expanding online gambling in the state.
The proposed legislation aimed to establish a state-run online lottery, enabling the Hoosier Lottery to offer draw and eInstant games online to players aged 18 and older. The bill also sought to ban digital lottery couriers and required the formation of a voluntary iLottery exclusion program. An amendment that did make it through would have introduced an incentive program for retailers promoting the digital lottery games and stipulated annual reviews to determine if online sales were impacting traditional retail lottery sales.
Despite initially advancing through committee and making it onto the floor calendar, the proposal was pulled right before discussion. This abrupt conclusion dashed hopes for supporters who anticipated a quick approval within the short session.
Lottery advocates have been pushing for online sales for years, citing a shift in consumer preferences towards mobile purchases. During committee discussions, the Hoosier Lottery highlighted the importance of adapting to these changing buying behaviors.
However, the political landscape became more complicated as discussions began to intertwine with online casino regulations. While Manning aimed to keep HB 1078 strictly focused on iLottery, some lawmakers sought to reintroduce online casino provisions, claiming that similar gaming already occurs in Indiana without state oversight or tax revenue. Their efforts were stymied by procedural rules preventing amendments deemed irrelevant to the current bill.
Manning believes that the state’s experience with sports betting, which launched in 2019, has affected perceptions of online gambling. Some lawmakers are wary of the public exposure and advertising linked with sports wagering, which has influenced their stance on potential expansions in online gaming.
Supporters of the iLottery often characterize it as a less risky alternative to casino games. Nonetheless, any proposal that resembles online gambling tends to face scrutiny and resistance within the Statehouse, leading to uncertainty about the future of initiatives like HB 1078.
As it stands, there will be no movement on the bill for the remainder of the 2026 session, leaving proponents of online lottery sales without a viable path forward at this time.