Louisiana lawmakers have passed HB 883, a bill that defines dual-currency sweeps casinos as illegal gambling.
It will go to sit on the desk of Governor Jeff Landry along with HB 53, a separate proposal that would bring “gambling by computer” under racketeering laws. This means that if both were signed off on, they would work in tandem to make sweeps casinos eligible for prosecution under harsher racketeering statutes.
What Would HB 883 Do Exactly?
HB 883 would amend Louisiana Revised Statutes 14:90.3, which already prohibits more traditional forms of online gambling. With the update, however, the bill would add the following clause to the state definition of “gambling by computer”:
“Any game, contest, or promotion that is available on the internet or accessible on a mobile phone, computer terminal, or similar access device that utilizes a dual-currency system of payment allowing the player to exchange the currency for any prize or award, cash, or cash equivalents, or any chance to win any prize or award, cash, or cash equivalents, and simulates any form of gambling constitutes gambling by computer.”
Popular sweepstakes sites – including Stake.us, McLuck, and Chumba Casino – use the dual-currency system, meaning they would be captured by this new law, although almost all operators have already left the Pelican State (more on that below).
HB 883 would also implicate the supply chain (geolocation providers, gaming content suppliers, promoters, endorsers, media affiliates etc.), while upping the fines for violation from $20,000 to $100,000 and maintaining the threat of imprisonment.
Current law already makes it a crime for the customer in a computer gambling arrangement too, and this would not change, meaning users of sweepstakes casinos could technically be fined up to $500 or imprisoned, or both.
Finally, the bill would strengthen rules around the sending of cease-and-desist letters to problem operators. This is something the Louisiana regulator has been known to do, but HB 883 would formalize the process, giving it clearer legal weight.
The State of Play in Louisiana
Indeed, the Louisiana Gaming Control Board (LGCB) issued C&Ds to 40+ online gambling platforms in June last year, targeting sweepstakes casinos, offshore operators, and affiliates.
This was after Governor Landry vetoed SB 181, a bill with very similar intentions to HB 883. Landry argued that the state already had laws in place to define sweepstakes casinos as illegal, and, in a sense, he was proved right when almost every sweeps operator ended up leaving, likely triggered by the wave of C&Ds.
Essentially, HB 883 comes at a time when all legitimate sweeps operators are already out of Louisiana.
But will Landry sign it into law? And will he do the same for HB 53 – which passed last month – allowing the two to combine and move “gambling by computer” into the realm of racketeering offences? This would add even more weight to prosecution, opening the door to harsher consequences including asset forfeiture powers and the possibility of multi-count prosecutions usually associated with organized criminal activity.
It’s worth noting that HB 883 moved on a streamlined legislative path, moving through just one policy committee in each chamber before reaching the floor. It passed the House last month, then in the Senate it was advanced under suspended rules and passed unanimously, showing a fast-track approach and strong bipartisan agreement.
The Governor does sit apart from the legislature, and in this case it perhaps feels like lawmakers are again pushing for a definitive outlawing of sweepstakes casinos, forcing Landry to consider the issue for a second time. We’ll keep you updated with any developments.
Author: Michael Fatouros
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