Louisiana’s Attorney General’s office has issued a formal opinion declaring sweepstakes casinos illegal in the state.
State Senator Rick Edmonds had requested legal clarity around unregulated betting sites in Louisiana after Gov. Jeff Landry vetoed a bill that would have explicitly banned sweepstakes casinos.
The AG office released its opinion, which stated, “It is the opinion of this office that online businesses offering casino-style games—purporting to be sweepstakes or social gaming platforms—are operating in violation of Louisiana law.”
The opinion went on to make it clear that a dual-currency system employed by sweepstakes platforms does not offer any legal immunity to gambling laws. It stated, “A dual currency system whereby a person uses virtual coins to play slot machine or other gambling types of games in order to win money or prizes is illegal under La. R.S. 14:90.3.”
Louisiana Taking Stance Against Illegal Gambling
Gov. Landry vetoed a bill banning sweepstakes as he said the state already had sufficient authority to shut down illegal gambling platforms. The AG’s opinion confirms this, following on from the Louisiana Gaming Control Board, which issued cease-and-desist letters to 40 unregulated gambling sites, including sweepstakes casinos.
When vetoing the bill, Landry stated, “Our current Louisiana Gaming Control Board has the regulatory authority, control, and jurisdiction over all aspects of gaming activities and operations pursuant to the Louisiana Gaming Control Law.”
“Furthermore, the Board, the Louisiana State Police Gaming Enforcement Division, and the Louisiana Attorney General’s Office are all tasked with ensuring the initial and continuing suitability of all gaming licensees and permittees and eliminating, to the extent possible, known criminal and corrupt influences on Louisiana’s gaming industry.”
Sweepstakes Operators Joy At Veto Short-Lived
After Landry had vetoed the bill, the Social Gaming Leadership Alliance (SGLA), a lobby group for sweepstakes casinos formed by leading operator VGW, celebrated a victory. A statement read, “On behalf of the Social Gaming Leadership Alliance (SGLA) and the Louisiana residents who enjoy free-to-play online social games, we sincerely appreciate the opportunity to continue the conversation about online social gaming in Louisiana.
“Gov. Landry’s veto gives all stakeholders an opportunity to pursue a sensible solution to allow Louisiana residents to continue playing online social games, explore revenue streams for the state and create a licensing and regulatory environment which applies the highest standards of player protections and responsible social gaming.”
The veto, however, has had the opposite effect that the SGLA had anticipated and has resulted in both the Gaming Control Board and Attorney General coming out strongly against the platforms.
Other States On Verge Of Banning Sweepstakes
The SGLA, along with other sweepstakes advocate group, the Social and Promotional Gaming Association (SPGA), has urged governors to use their veto power on bills that have gained support from lawmakers. New York is awaiting Governor Kathy Huchal’s approval on an explicit ban on sweepstakes in the state.
However, similarly to Louisiana, the state has already been using its powers to drive out operators. Attorney General Letitia James issued cease-and-desist letters to 26 operators as the bill was making progress in the Assembly and Senate.
New Jersey lawmakers also approved a ban on sweepstakes this week, needing only Gov. Phil Murphy’s signature for it to come into law.
If the bills in New York and New Jersey are signed off, the states will join Montana and Connecticut in approving legislation against the platforms. However, as Louisiana has demonstrated, passing legislation may not be necessary for regulators and attorneys general to clamp down on the unlicensed betting platforms.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling. Adam focuses on emerging stories in the ever changing landscape of betting in the US. Read the latest on prediction markets, changing legislation, and sweepstakes.
