Louisiana Only Needs Governor’s Signature to Outlaw Sweepstakes Casinos

As iGaming becomes a more and more alluring option to states across the country, Louisiana is on the verge of becoming the second state to ban sweepstakes casinos.

The Louisiana House of Representatives on Monday unanimously approved Senate Bill 181, which would institute a total ban on dual-currency casinos and elevate penalties for platforms offering illegal gaming. The vote finished with a final count of 99-0.

Montana is the only other state that has instituted dual-currency casino bans.

Taking sweepstakes off the board

The final step for SB 1818 is for Gov. Jeff Landry to sign his approval, thus bringing it into law and outlawing dual-currency casinos. He has the chance to beat out Nevada, which has a similar bill waiting on the Governor’s desk.

Sen. J Adam Bass (R-District 36) presented the measure in early April. The Senate greenlighted it with another unanimous vote, 39-0 in favor, at the end of April.

As outlined in the details, the Louisiana Gaming Control Board (LGCB) would have the authority to bring civil enforcement actions and penalties against companies proven to offer sweepstakes gaming. The LGCB would also be able to find operators, affiliates, providers, and other entities associated with the platform if they engage with or receive revenue payments from the platform.

Fines would be $10,000-100,000 per incident depending on the magnitude of the violation. 

Despite unanimous agreement from local lawmakers, everyone is not on board with the proposed change. The Social and Promotional Games Association (SPGA) said the bill reduces consumer choice by classifying a regular form of gambling as an illegal activity.

“We’re disappointed by yesterday’s vote in the Louisiana House,” an SPGA spokesperson said. “Legal sweepstakes platforms operate under well-established guidelines and are used by millions of adults, including Fortune 500 companies like Microsoft and Starbucks, to engage consumers through lawful, free-to-play promotions.”

More changes on the way?

Dual-currency casinos are not the same as traditional retail or online casinos. They utilize gold coins and sweeps coins, which are currencies native to the gaming platform that can be redeemed, earned, or paid for.

These coins allow customers to participate in online games that can produce a variety of prizes, including gift cards, more coins, and even cash.

The difference between dual-currency casinos and regular casinos is that they do not require customers to enter a deposit to begin playing.

Sweepstakes gaming can come in several forms, all of which would be banned by SB 181. That includes casino-style games such as slot machines and roulette, lottery games, and sports betting.

As sweepstakes gaming awaits its future, Louisiana officials are also considering raising the state’s sports betting tax rate to 21.5 percent. The Senate Revenue and Fiscal Affair Committee gave its nod to Rep. Neil Riser’s (R-District 20) House Bill 369 on Monday.

The bill, which was approved by a 73-15 house in May, would elevate the existing 15 percent tax rate. It would also create the Supporting Programs, Opportunities, Resources, and Teams Fund, which would receive 25 percent of sports betting revenue and be used to fund NCAA Division I athletic departments for in-state colleges and universities.