Louisiana Sweepstakes Casino Ban Hits Governor’s Desk

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Another sweepstakes casino prohibition bill is on the way to a governor. 

The Louisiana House passed Monday Senate Bill 181, which prohibits sweepstakes casino operators from operating in the Bayou State. It passed with a 99-0 vote. The Senate passed the bill earlier this session with a 39-0 vote. 

It now heads to Gov. Jeff Landry

Montana Gov. Greg Gianforte signed a ban last month. Nevada lawmakers have also passed a ban, which awaits Gov. Joe Lombardo‘s signature. This week, Connecticut lawmakers also passed a sweepstakes prohibition.

Sweepstakes casino reaction 

The Social and Promotional Games Association released a statement Tuesday about its disappointment Louisiana lawmakers passed the bill. 

“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.”

The SPGA does not include major sweepstakes operator VGW, which launched its own industry group, the Social Gaming Leadership Alliance, this year

Senate Bill 181 contents

The bill expands the criminal definition of “gambling by computer” to include dual-currency sweepstakes casino operators. Prior to the bill’s Senate passage, sponsor Sen. Adam Bass told the Senate the operators are “ripping off Louisiana citizens” as “unregulated and untaxed gambling.” 

Violations would carry penalties of up to $100,000 in fines and up to five years in prison.

That discussion came as legislators began online casino expansion conversations over the winter.

Sweepstakes casino legislation

Earlier this year, sweepstakes prohibition bills in multiple states failed to pass the full legislature:

New Jersey lawmakers are also still discussing a prohibition bill. A New York Senate bill prohibiting sweepstakes is on the Senate floor, with the session coming to a close June 12.

VGW announced it will pull its sweepstakes operators out of New York last month.

Photo by AP Photo/Kevin Wolf