Despite overwhelming approval by the legislature, sweepstakes casino operators will not be illegal in Louisiana.
Gov. Jeff Landry vetoed Senate Bill 181, which proposed a prohibition on online sweepstakes casino operators. The bill passed unanimously in the Senate and House, but Landry said illegal gambling is already strongly policed.
“The [Louisiana Gaming Control] Board is already taking active steps to combat illegal gambling in Louisiana, especially against illegal offshore wagering and illegal online sweepstakes companies operating in Louisiana,” Landry said in his veto message.
Sweepstakes casinos already policed
Landry said the LGCB, Attorney General and Louisiana State Police Gaming Division already monitor illegal gambling. He also said they will continue to issue cease-and-desist orders to illegal operators “that intentionally design their business models to circumvent Louisiana gaming laws and regulations.”
Ultimately, he said SB 181 is unnecessary.
“This bill is a solution in search of a problem that is already being solved by our current system, and some of the language in this bill is overly broad and could be interpreted in an adverse manner which may harm or impede our current enforcement actions taken against these bad actors,“ Landry said in the message.
Landry does plan to call a legislative special session. That could open up a veto override, but only three vetos have been overturned in Louisiana since 1974.
Sweeps group applauds Landry veto
The Social and Promotional Games Association has been vocal about disappointment in recent legislative moves against the sweepstakes industry.
It sent out a statement commending Landry’s veto. The SPGA noted that legislators in Maryland, Mississippi, and Florida opted not to pass prohibition bills.
“Governor Landry’s veto is a powerful affirmation that not all online games are gambling and that innovation should not be met with prohibition,” said a spokesperson for SPGA. “This legislation blurred critical legal distinctions and risked punishing legitimate businesses that comply with well-established sweepstakes laws and offer free-to-play experiences.”
Sweepstakes prohibition bills
Louisiana was one of four states that recently passed sweepstakes prohibition bills.
Montana Gov. Greg Gianforte signed the first such bill in the US last month. Lawmakers in Connecticut and Nevada also passed prohibition bills.
This week, the New York Senate sent a similar bill to the Assembly. That follows Atty. Gen. Letitia James announced cease-and-desist letters were sent to 26 sweepstakes brands.
