Representatives in the Louisiana House have passed anti-sweepstakes bill HB 883 in a unanimous vote of 99-0.
In fact, it’s already been received in the Senate, read for the first time, and placed on the calendar for a second reading.
If it manages to pass the upper chamber, it would head to Governor Jeff Landry to be signed into law, or vetoed.
Could HB 883 Be Vetoed Like SB 181?
Being vetoed at the last hurdle is a real possibility here. That’s exactly what happened last year when SB 181 – a bill with a very similar intent – reached Landry’s desk. He argued that Louisiana already had the laws in place to deal with sweepstakes casinos, and in a way, he was proved right.
With cease-and-desist orders and an anti-sweeps legal opinion from the Attorney General soon after the veto, the exodus of sweeps operators from LA began, and now hardly any operators offer sweeps gaming there.
Is HB 883 Much Different from SB 181?
HB 883 would add dual-currency casinos into the state’s definition of “gambling by computer” and bring penalties of up to $100,000 or imprisonment against operators. It would also implicate elements of the supply chain supporting such casinos – platform providers, gaming suppliers etc.
HB 883 even implicates players with the possibility of fines of up to $500 or imprisonment. Importantly, it also strengthens the laws around the sending of cease-and-desist letters to illegal operators.
SB 181 was broadly similar. In fact, its definition relating to dual-currency systems is almost identical to the one used in HB 883. Fines also went up to $100,000 with the threat of imprisonment, and supporting entities would have been implicated, had the bill passed into law.
However, all the wording around C&Ds wasn’t there, so would this be enough of a change for Landry to sign HB 883 rather than veto it?
You could point out that Louisiana regulators have already been sending cease-and-desist letters – that’s indeed part of how they got operators to leave last year, with a wave of letters to over 40 sweeps brands.
Well, HB 883 would formalize this approach in statute, giving the Attorney General (and sometimes chair of the Louisiana Gaming Control Board) clearer enforcement powers to initiate legal action and seek court orders. Instead of relying on general enforcement authority, HB 883 makes explicit the remedies courts can impose, including:
- injunctions against ‘gambling by computer’ violations
- website removal or disabling
- account freezes
- orders compelling platforms or payment processors to stop facilitating illegal activity
For now, HB 883 has sailed through the House, and it could do the same in the Senate, but whether it would pass the final step with the Governor remains to be seen.
We also have Louisiana’s HB 53 being considered – a bill which looks to bring “gambling by electronic sweepstakes device” under racketeering laws.
But it’s HB 883 that sets a much clearer precedent against online sweeps casinos, and the Louisiana session still has plenty of time to pass and deliver this bill to Landry, with an end date of June 1 this year.
Author: Mike F.
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