Louisiana is the latest state in which lawmakers are mulling a ban on online sweepstakes casinos.
A bill filed on April 4, Sen. Adam Bass’ SB 181, would ban the operation and promotion of online sweeps in the state. The bill looks to prohibit “gambling by computer,” defined as any online game, contest or promotion that utilizes a dual-currency system of payment and offers players the chance to win any prize or award or cash or cash equivalents.
Any offering that simulates any form of casino-style gaming, lottery gaming or sports betting would constitute illegal gambling by computer and would not be considered a legal sweepstakes. The bill would also prohibit any existing licensed operator or associated vendors from being involved with any aspect of illegal online gambling, including sweepstakes casinos.
The Louisiana Gaming Control Board and the Department of Public Safety and Corrections would be given the authority to investigate violations and also pursue enforcement actions such as cease-and-desist letters. Numerous states have taken this kind of action against unlicensed operators of online casinos and sweepstakes-style platforms in recent months.
The proposal criminalizes the operation or promotion of online sweepstakes casino gaming. Anyone guilty would be fined at least $10,000 per instance and could face up to five years in prison. They would also be guilty of violating the state’s deceptive and unfair trade practice law, opening up the potential of civil penalties as well as criminal.
Suppliers also under fire
The Louisiana bill is similar to legislation that has been filed in some other states in that it not only targets operators but also suppliers, affiliates and other parties.
Bass’ bill puts everyone from game developers to platform providers, geolocation partners, media affiliates and advertisers in the crosshairs.
Louisiana joins a lengthy list of states to have filed legislation targeting sweepstakes in 2025. Others include Maryland, New York, New Jersey, Connecticut and most recently Illinois. A high-profile bill in Mississippi passed both chambers but died in concurrence after the issue of legal sports betting was added.
The Louisiana bill has been pre-filed and provisionally referred to the Committee on Judiciary B.
SPGA warns of damaging effect on businesses
In response to the bill, the Social and Promotional Games Association (SPGA) issued a statement in which it asserted that the legislation “recklessly misclassifies legitimate sweepstakes as illegal gambling.”
“This misguided legislation endangers lawful businesses and sends a chilling message to investors, jeopardising Louisiana’s burgeoning tech sector,” added the statement. “For decades, companies — from fast-food chains to app developers — have utilised sweepstakes as legal promotional tools. Even more troubling, SB181’s overly broad definitions could unintentionally criminalize loyalty and rewards programs run by some of the most respected brands in the country.”
The SPGA also argued that social sweepstakes do not compete with real-money casinos due to their free-to-play aspect. “The vast majority of users never spend a dime,” added the association.
