Louisiana House Passes Anti-Sweepstakes Bill

A Louisiana bill aiming to prohibit sweepstakes casinos has garnered overwhelming support, passing the House with a 99-0 vote. The legislation, known as SB181, previously achieved a unanimous 39-0 vote in the Senate and is poised to return to the upper chamber following some amendments. With broad backing from lawmakers, its re-passage in the Senate appears imminent, awaiting only the signature of Governor Jeff Landry to become law.

This bill bans online games, contests, or promotions that utilize a dual-currency payment system, which allows players opportunities to win prizes, cash, or equivalents. The focus here is on curbing sweepstakes casinos that enable players to engage in casino games using virtual coins instead of direct cash gambling. Violators may face severe penalties, including fines of up to $100,000 and a potential five-year prison sentence.

Safeguarding Louisiana’s Gambling Industry

Championing the bill, Rep. Debbie Villio highlighted concerns regarding the proliferation of illegal iGaming platforms: "These operate without adhering to established standards for fair play, player protection, and responsible gaming," she remarked. In a response to another representative’s queries, she emphasized, "This bill is designed to protect our licensed Louisiana gaming operators."

Currently, Louisiana does not authorize online casinos. However, it boasts a diverse gaming landscape, including one land-based casino, Caesars New Orleans, alongside 15 riverboat casinos and racinos that offer slots at various racetracks. Additionally, video-gaming terminals (VGTs) are available at establishments throughout the state, such as truck stops and bars.

In total, the gaming industry in Louisiana generated an impressive $3.43 billion in revenue last year, contributing $791 million in tax revenue. Sports betting has also proved lucrative, yielding $55 million in taxes from a total revenue of $388 million.

Alongside efforts to clamp down on unregulated gambling, legislators have proposed increasing the sports betting tax rate. Originally suggested to double from 15% to 32.5%, the House settled on an updated rate of 21.5%, which is now awaiting approval in the Senate. If passed, this new rate will come into effect next year.

Opposition from the Social and Promotional Gaming Association (SPGA)

The Social and Promotional Gaming Association (SPGA) has voiced strong opposition to the proposed bill as it nears finalization. A spokesperson articulated their discontent following the House vote: “We’re disappointed by yesterday’s vote in the Louisiana House." They pointed out that “legal sweepstakes platforms operate under well-established guidelines, utilized by millions of adults and prominent companies like Microsoft and Starbucks for lawful, free-to-play promotions."

The SPGA further contended, “This bill carelessly conflates legal entertainment with illegal gambling, without evidence of harm. It threatens Louisiana’s economy by stifling digital innovation and driving compliant companies out of the state. This is a step backward for consumer choice, lawful innovation, and common sense.”

Louisiana joins Montana in passing legislation to ban sweepstakes casinos, while other states such as New York, Connecticut, New Jersey, and Ohio are deliberating similar bans. Consequently, many sweepstakes operators have already exited these jurisdictions.

Conclusion

The evolving landscape of gambling regulation in Louisiana underscores the balancing act between protecting consumers and encouraging innovation in the gaming industry. As lawmakers move to enforce stricter regulations, the implications for both local operators and broader digital gaming market trends remain to be seen.

By fostering a regulated environment, Louisiana aims to ensure the integrity of its gaming landscape, while also addressing the concerns associated with unregulated platforms.

About the Author

Adam Roarty is a seasoned writer with extensive experience in the gambling industry, having served as a content writer and editor for renowned platforms such as Oddschecker, CoinTelegraph, and Gambling Industry News. With a keen focus on emerging trends in U.S. betting legislation, Adam delivers insightful commentary on topics like prediction markets, evolving regulations, and sweepstakes dynamics. Follow him for the latest developments in the ever-changing gambling landscape.