Louisiana’s Sweepstakes Ban Bill Awaits Governor’s Pen
Louisiana’s House of Representatives gave a resounding 99-0 nod to Senate Bill 181, a measure to outlaw online sweepstakes casinos, hot on the heels of a 39-0 Senate vote.
A Unanimous Push to Ban Sweepstakes
Introduced by Senator Adam Bass, the bill takes aim at unregulated platforms that mimic casino games or lotteries, using sneaky dual-currency systems to dole out cash prizes.
If Landry signs it, Louisiana could join Montana as only the second state to ban these digital gambling hubs, following Montana’s Senate Bill 555, set to kick in October 1.
SB 181 is all about plugging a gap in Louisiana’s gambling laws. These sweepstakes sites let players buy virtual coins, supposedly worthless, to play games, then swap winnings for real money, sidestepping traditional gambling rules. Bass made it clear the bill targets platforms acting like casinos or lotteries, not legit retailer promotions like loyalty programs.
The goal is to protect Louisiana’s licensed gambling industry, which pays taxes, unlike these unregulated outfits that dodge state oversight.
Tough Penalties for Rule-Breakers
Operators, affiliates, software providers, geolocation services, and even advertisers could face fines up to $100,000 or five years in prison for running afoul of the law.
By banning dual-currency games, SB 181 aims to level the playing field for regulated casinos and sportsbooks, which are held to strict state standards.
Bass told lawmakers these platforms siphon off revenue that could support state coffers, estimating residents wager $4.5 billion yearly on unregulated sites.
Not everyone’s cheering. The Social and Promotional Games Association slammed SB 181, saying, “These games operate under strict ‘no purchase necessary’ rules, ensuring they remain free to play for everyone… Lumping these games in with gambling is not just legally inaccurate—it’s economically and culturally tone-deaf.”
They argue the bill mislabels legal sweepstakes, potentially killing jobs and innovation.
With SB 181 now on Landry’s desk, the ball’s in his court. A signature would make it law, effective immediately, aligning Louisiana with Montana’s crackdown and setting a precedent as other states like New York and New Jersey eye similar bans.
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