Louisiana senator proposes legislation banning sweepstakes casinos
Adam Bass’ Senate Bill 181 looks to outlaw the promotion and operation of online sweeps in the state, with guilty parties facing up to five years in prison
Louisiana has introduced potential legislation that would see the banning of sweepstakes casinos in the state.
Senate Bill 181, introduced by Republican Senator Adam Bass, would prohibit sweepstakes operators from doing business in the state, as well as targeting suppliers and affiliates that support them.
‘Suppliers’ includes those companies providing geolocation, platform, and content services to sweepstakes operators.
The legislation defines sweepstakes operators as sites that use “a dual-currency system of payment allowing the player to exchange the currency for any prize or award or cash or cash equivalents.”
SB 181 adds that “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.”
The Louisiana Gaming Control Board and the state’s Department of Public Safety and Corrections would have the authority to investigate potential violations by operators and pursue enforcement action for offending parties.
Per the proposal, guilty operators would face a fine of at least $10,000 per instance, with the most serious offences carrying a sanction of up to five years in prison.
In response to the Louisiana proposal, the Social and Promotional Games Association (SPGA) strongly opposed its introduction, claiming the bill “recklessly misclassifies legitimate sweepstakes as illegal gaming.”
The trade body warned the bill could have knock-on effects for businesses outside of the gambling industry.
A SPGA statement read: “For decades, companies – from fast-food chains to app developers – have utilized sweepstakes as legal promotional tools.
“SB 181’s failure to distinguish between these lawful activities and gambling not only threatens these businesses but also undermines established legal frameworks that support innovation and economic growth.
“Even more troubling, SB 181’s overly broad definitions could unintentionally criminalize loyalty and rewards programs run by some of the most respected brands in the country.
“These well-established, widely used programs could be swept into legal jeopardy under the current language of the bill; an outcome that would be both absurd and deeply damaging to consumer trust.”
The SPGA noted that the introduction of SB 181 would be “hostile to innovation” in the Bayou State.
The statement continued: “Moreover, by criminalizing legitimate business models, SB 181 discourages venture capital investment, potentially stifling the development of emerging technologies, including artificial intelligence.
“This legislative overreach positions Louisiana as hostile to innovation, putting the state at a competitive disadvantage compared to more forward-thinking regions.
“Alarmingly, SB 181 has advanced without meaningful consultation with industry stakeholders.
“The 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.
“SPGA calls on Louisiana lawmakers to reject SB 181 before it inflicts lasting damage on the state’s economy and reputation as a hub for innovation.”
Louisiana joins states such as Arkansas, New York, and New Jersey in introducing potential legislation to ban sweepstakes casinos.
A bill to outlaw sweepstakes gaming in Mississippi was eventually killed after proposals to legalize sports betting were tacked onto the original legislation in the Magnolia State.