The Louisiana Gaming Control Board has announced that it has issued cease-and-desist letters to 40 illegal gambling operators, including offshore betting sites and sweepstakes casinos.
Last week, Louisiana’s Governor Jeff Landry vetoed a bill banning sweepstakes casinos, but rather than paving the way for the sites to continue operating, Landry commented that the Board already had sufficient power to target illegal gambling operators.
The statement from the Board backs up this claim, as it noted, “Today, in a continued show of enforcement strength, the Board issued more than 40 additional cease-and-desist letters to offshore wagering platforms and online sweepstakes operators whose business models have been found to circumvent Louisiana gaming laws and regulations.”
The sites issued with the cease-and-desist letters have not been named, but the action serves as proof of what Landry had stated when vetoing the bill. Commenting on sites that operate outside of state gambling laws, Landry noted, “The Board, the Louisiana Attorney General’s Office, and the LSP Gaming Division are all monitoring this type of activity and will continue to issue additional cease-and-desist letters to similar illegal offshore wagering and illegal online sweepstakes companies that intentionally design their business models to circumvent Louisiana gaming laws and regulations.”
Sweepstakes casino celebrations 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.”
Some of the SGLA’s members may well be among those issued with the orders by the Board. VGW was issued cease-and-desist letters in Delaware and Connecticut and subsequently withdrew operations from the states. A bill in New York that has advanced through the Senate and is now awaiting approval in the Assembly, also forced the company to exit the Empire State.
Louisiana sends a clear message
Landry’s veto of the sweepstakes ban potentially confused the legal status of sweepstakes in the state, but the latest action looks to confirm Louisiana’s stance on unregulated online casinos.
“These actions send a clear message,” said Christopher B. Hebert, Chairman of the Louisiana Gaming Control Board. “Louisiana will not tolerate illegal operators who put our citizens at risk and undermine the fairness and integrity of our gaming industry. We will continue to use every enforcement tool available to protect the public and uphold the law.”
Before the orders, it was estimated that 90 sweepstakes casinos operated in Louisiana, so while the 40 cease-and-desist letters may not target all operators, it shows that the Board means business in targeting unregulated gambling 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.
