A Louisiana bill proposing to ban sweepstakes casinos was voted 99-0 in favor in the House on Monday, and is close to being passed into law.
SB181 was passed in the Senate 39-0, but will now return there after slight amendments in the House. With unanimous backing by lawmakers, it is likely to pass through the Senate again without any problem and will then be left to Gov. Jeff Landry to sign off.
The bill will prohibit online games, contests, or promotions that utilize a dual-currency system of payment and offer players the chance to win prizes, cash, or cash equivalents.
This specifically targets sweepstakes casinos that allow players to use virtual coins to play casino games, rather than gambling directly with cash. Violators could face fines up to $100,000 and imprisonment for up to five years.
Bill to protect Louisiana gambling industry
Rep. Debbie Villio advocated for the bill in the House, noting that “illegal iGaming platforms operate without adhering to established standards for fair play, player protection, and responsible gaming.” In response to a query from another House representative, she added that the bill “is to protect our licensed Louisiana gaming operators.”
Louisiana has not legalized online casinos, but does have one land-based casino, Caesars New Orleans. Additionally, the state has 15 riverboat casinos, racinos that offer slots at racetracks, and video-gaming terminals (VGTs) at various establishments across the state, including truck stops and bars.
Altogether, the gaming industry generated $3.43 billion in revenue last year in the state, contributing $791 million in tax revenue. Louisiana sports betting also generated $55 million in taxes, from revenue of $388 million.
As well as clamping down on unregulated forms of gambling, lawmakers proposed to increase sports betting tax. The original proposal advocated doubling the current rate of 15% to 32.5%, but after discussion in the House, the bill was passed at a rate of 21.5% last week. The bill is now in the Senate and the new tax rate would become active next year if approved.
SPGA speaks out against the bill
The Social and Promotional Gaming Association (SPGA) voiced its opposition to the bill, which is on the verge of becoming law.
“We’re disappointed by yesterday’s vote in the Louisiana House,” a spokesperson for the SPGA said Tuesday. “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.
“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.”
Louisiana would join Montana in successfully passing legislation to ban sweepstakes, while New York, Connecticut, New Jersey, and Ohio all have active bills to prohibit the platforms. In light of the proposals, many sweepstakes operators have already exited these states.
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.
