Louisiana has become the 10th US state to see lawmakers file an anti-sweepstakes bill this year.
SB181 was prefiled by Republican Senator Adam Bass on April 4th. The legislative session is set to begin on April 14th, when the bill will start its journey through the Senate, welcoming debate, potential amendments, and votes on its content.
It proposes changes to the current law on what constitutes illegal online gambling in Louisiana, providing a clear definition of sweepstakes gambling:
“Any games, 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 or cash or cash equivalents, or any chance to win any prize or award or cash or cash equivalents, and simulates any form of gambling shall constitute illegal gambling by computer and shall not be considered a legal sweepstakes.
Such forms of gambling shall include but not be limited to the following:
(1) Casino-style gaming, such as slot machines, video poker, and table games, including blackjack, roulette, craps, and poker.
(2) Lottery games, including draw games, instant win games, keno, and bingo.
(3) Sports wagering.”
The bill increases maximum fines from $20,000 to $100,000, maintains imprisonment for up to five years, and widens the scope to include penalties for not just the operator, but any “geolocation provider, gaming manufacturer, gaming supplier, platform provider, promoter, or media affiliate.”
Louisiana is Fairly Typical for Gambling
The Pelican State mirrors many other US states when it comes to gambling laws. iGaming is currently illegal, while casinos and sports gambling in-person are legal. However, daily fantasy sports occupy a unique space in Louisiana, with availability varying across parishes depending on voter approval.
Across the USA, sweepstakes casinos have existed in a legal gray area, typically justifying their existence through traditional sweepstakes laws. Now, bills like SB181 seek to draw a clear line and turn this gray issue into a black and white one.
The Social and Promotional Games Association (SPGA) is a trade association that advocates for the sweepstakes casino industry, and it’s released a message “vehemently” opposing SB181. Part of its statement reads as follows:
“Alarmingly, SB181 has advanced without meaningful consultation with industry stakeholders. SPGA urges Louisiana legislators to halt this ill-conceived bill immediately and engage with experts to craft policies that protect consumers without dismantling legitimate businesses or deterring technological advancement.”
SB181 Goes Beyond Other Anti-Sweepstakes Bills
In a way, this bill is different from any we’ve seen before. Aside from levying criminal punishments, SB181 would give the Louisiana Gaming Control Board (LGCB) and the State Police powers to bring “civil enforcement actions to enjoin the unlawful conduct, requiring the taking down of illegal gambling websites and illegal gambling mobile applications, and imposing civil penalties.”
Each state has its own gaming regulator, but powers are often limited to issuing cease and desist orders, which are sometimes simply ignored. SB181 will give Louisiana’s regulator and its police force the ability to bring civil enforcement actions to shut down operations, a privilege usually reserved for the Attorney General.
We’re still yet to see any anti-sweepstakes bill in the US succeed, with Mississippi’s SB2510 failing last week. However, momentum is building, with 1 in 5 states now seeing proposals filed.
In Louisiana, a counterpart in the House of Representatives will likely be needed to advance the effort, as both chambers need to approve legislation before it can be sent to the governor for signing into law. We’ll keep you updated on any developments here.
Author: Joseph Allen
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