With Louisiana’s legislative session ending in days, the House passed SB 181 by 99-0. If the bill becomes law, sweepstakes casinos will be banned in the Bayou State starting Aug. 1.
Key takeaways
- Both Louisiana’s House and Senate now both unanimously approved a bill to ban sweepstakes gambling.
- If signed into law, violators could receive fines up to $100,000 for each violation and prison terms up to five years.
- As legislative sessions near their ends, it’s a race against time for other states looking to follow Louisiana’s example.
Sweepstakes gambling sites let customers wager with free coins. They can buy additional coins, however, with real money and/or cryptocurrency and exchange them for cash and prizes.
These types of online casinos, unlicensed and unregulated, recently came under fire from lawmakers and regulators. Louisiana is just one of several states looking to crack down on sweeps. The state Senate unanimously approved SB 181 back in April. On May 29, the bill cleared the House Legislative Bureau, setting up it up for yesterday’s House vote.
Now that the proposal passed the House, it heads back to the Senate for an amendment review before going to Gov. Jeff Landy for his signature. The amendments are minor and technical in nature. So, the bill should move quickly to the Governor’s office.
SPGA against the bill
Meanwhile, the Social and Promotional Games Association (SPGA) “vehemently” opposes Louisiana’s sweeps bill.
“These games operate under strict “no purchase necessary” rules, ensuring they remain free to play for everyone,” the SPGA said in a statement following SB 181’s introduction. “In fact, the vast majority of users never spend a dime—they play for entertainment and the excitement of winning real prizes at no cost. Lumping these games in with gambling is not just legally inaccurate—it’s economically and culturally tone-deaf.”
The SPGA continues to point out businesses employ sweepstakes as promotional tools for everything from fast food to app developers. They worry some of the proposed laws could unintentionally criminalize rewards and loyalty programs, like those airlines and hotel chains use.
Montana was the first state to pass a law prohibiting sweepstakes gambling. But other states may soon follow suit. Connecticut, New Jersey, and New York still have active bills targeting sweepstakes gambling. But time is running out, as most legislative sessions are near their end.
