In a 39-to-0 vote, the Louisiana Senate approved a bill on Tuesday that would ban sweepstakes gambling and penalize operators, affiliates, suppliers, influencers, and investors.
Key Insights
- This week, bills banning sweeps moved forward in Louisiana, Connecticut, and New York.
- Nearly a dozen states either have bills pending – or already passed legislation – that would prohibit the unlicensed online casinos.
If signed into law, Louisiana SB 181 would go into effect on Aug. 1. Compared to other state bills targeting sweepstakes gambling, Louisiana’s proposed penalties are particularly stiff, with fines up to $100,000 per occurrence and prison terms up to five years.
Sweepstakes gambling sites allow customers to wager with free coins. The additional coins, however, can also be purchased with real money and/or cryptocurrency and exchanged for cash and prizes. These types of online casinos, which are unlicensed and unregulated, have recently come under fire from lawmakers and regulators.
Connecticut, New York also unanimously dislike sweeps
Louisiana isn’t the only state unanimously lined up against sweeps. Connecticut’s bill banning sweepstakes gambling, SB 1235, was introduced in February and unanimously passed its first committee in March. Last week, the Connecticut Senate Judiciary Committee approved the bill with a unanimous vote of 37-to-0. The bill has successfully moved on to the Office of Legislative Research and Office of Fiscal Analysis for a May 5 review.
In another recent unanimous decision, the New York Assembly Racing and Wagering Committee passed Bill A06745 on Wednesday, which bans online sweepstakes games in the Empire State. This is New York’s second bill banning sweeps. New York Senate Bill 5935 unanimously passed the Senate Racing, Gaming, and Wagering Commission in March.
Sweepstakes lobbyists have work cut out for them
Not everyone, however, sees sweepstakes gambling as a threat, especially its industry association. The Social and Promotional Games Association (SPGA) feels the current wave of legislation goes too far.
The SPGA points out that sweepstakes are used as promotional tools for everything from fast food to app developers. They worry that some of the proposed legislation could unintentionally criminalize rewards and loyalty programs, like those used by airlines and hotel chains.
Momentum, however, does not appear to be on the SPGA’s side. Other than a misfire by Mississippi, where a bill legalizing online sports betting and a bill banning sweeps both died in committee, most states are making progress in their attempt to ban sweepstakes gambling.
