Louisiana is on the cusp of becoming the latest U.S. state to ban online sweepstakes casinos, as Senate Bill 181 (SB 181) awaits Governor Jeff Landry’s signature. The bill, which passed both the Senate and House unanimously, targets unregulated online platforms that use dual-currency systems to simulate casino-style gaming.
Lawmakers Target Unregulated Online Gaming
SB 181 aims to close a loophole in Louisiana’s gambling laws by prohibiting online games, contests, or promotions that utilize a dual-currency system offering players the chance to win cash or cash equivalents. This move is intended to protect consumers from unregulated and untaxed gambling operations that have proliferated online.
Senator Adam Bass, the bill’s sponsor, emphasized that the legislation is designed to combat illegal online casinos that exploit Louisiana citizens. He clarified that the bill does not target legitimate promotional games by retailers but focuses solely on unregulated sweepstakes casinos.
Industry Pushback
The Social and Promotional Games Association (SPGA) has expressed disappointment over the bill’s passage, arguing that it conflates legal entertainment with illegal gambling. The SPGA contends that legal sweepstakes platforms operate under established guidelines and are used by millions of adults, including major companies, to engage consumers through lawful, free-to-play promotions.
The SGPA said in a statement:
“Legal sweepstakes platforms operate under well-established guidelines and are used by millions of adults, including Fortune 500 companies like Microsoft and Starbucks, to engage consumers through lawful, free-to-play promotions,” the statement reads.
“This bill carelessly conflates legal entertainment with illegal gambling, without evidence of harm. It also threatens Louisiana’s economy by stifling digital innovation and driving compliant companies out of the state. It’s a step backward for consumer choice, lawful innovation, and common sense.”
Enforcement and Penalties
If signed into law, SB 181 would impose strict penalties on violators, including fines of up to $100,000 and up to five years in prison. The legislation extends beyond operators to include affiliates, software providers, geolocation services, and advertisers involved in promoting these sites.
Broader Legislative Context
Louisiana’s move follows similar actions in other states. Montana recently enacted a ban on sweepstakes casinos, and Nevada has passed a bill awaiting the governor’s signature. Efforts to ban such platforms are also underway in states like New York and Connecticut.
A few states have also tried and failed to ban sweepstakes casinos in recent months, such as Arkansas, Maryland, Florida and Mississippi.
Connecticut, New York and New Jersey are also discussing banning sweeps casinos. The Connecticut bill also passed unanimously and awaits the Governor’s signature.
In addition to the sweepstakes ban, Louisiana lawmakers are considering increasing the state’s online sports betting tax rate from 15% to 21.5%. The proposed tax hike aims to generate additional revenue for the state and support various programs, including those benefiting student-athletes at public universities.
As the legislative session approaches its conclusion on June 12, all eyes are on Governor Landry to see if he will sign SB 181 into law, marking a significant shift in the Louisiana online gambling scene.
About the Author
