Louisiana Governor Vetoes Bill to Ban Online Sweepstakes Casinos

Landry’s Veto Stuns Lawmakers

Governor Jeff Landry vetoed Senate Bill 181 (SB 181), rejecting a unanimous push by Louisiana’s legislature to ban online sweepstakes casinos.

The bill, introduced by Senator Adam Bass, sailed through the Senate (39-0) and House (99-0), targeting platforms using dual-currency systems to mimic casino games.

“This bill is a solution in search of a problem,” Landry stated in his veto message, citing active enforcement by the Louisiana Gaming Control Board (LGCB).

Landry argued the LGCB, alongside the Louisiana Attorney General’s Office and State Police Gaming Division, already combats illegal gambling effectively. “The Board is taking active steps against illegal online sweepstakes companies,” he said, pointing to a recent cease-and-desist order against Harp Media B.V., operating as Bovada.

He criticized SB 181’s language as overly broad, warning it could hinder enforcement against rogue operators. “This bill isn’t necessary,” Landry concluded.

What SB 181 Aimed to Do

SB 181 sought to close a loophole allowing sweepstakes platforms, like Chumba and Stake, to offer slots, poker, blackjack, roulette, craps, keno, bingo, and sports betting via virtual coins redeemable for cash.

These sites, using dual-currency models, evade traditional gambling laws. The bill proposed fines of $10,000 to $100,000 and up to five years in prison for violations, per its text.

Representative Debbie Villio, presenting it in the House, said it protected licensed operators, like Harrah’s New Orleans, which paid $200 million in 2024 taxes. Bass argued it shielded consumers from unregulated risks, citing 1,800 problem gambling cases reported in 2024.

Lawmakers and licensed casinos backed SB 181 to safeguard Louisiana’s regulated gambling, which employs 17,000. “Illegal platforms dodge oversight,” Villio told the House, noting their lack of fair-play standards.

The bill aimed to redirect $50 million in untaxed sweepstakes revenue to regulated markets, per analyst estimates. The unanimous votes reflected broad support, with Attorney General Liz Murrill and State Police endorsing it.

Yet, Landry’s veto, his third in 2025, dims prospects for an override. Since 1974, only three vetoes have been overturned, and lawmakers declined a special session to challenge Landry’s earlier vetoes.

National Context and Louisiana’s Path

Louisiana’s veto contrasts with bans in Montana, signed May 2025, and Connecticut, signed June 12. Nevada’s ban awaits Governor Joe Lombardo’s signature, while New York and New Jersey advance similar bills.

Louisiana allows online sports betting but not iGaming, creating a gray area for sweepstakes. Landry’s reliance on LGCB enforcement aligns with his 2024 vetoes of bills deemed redundant, like a tort reform bill.