As long as Louisiana’s governor agrees, the Pelican State will become the second in the U.S. to explicitly define and ban online sweepstakes casinos.
The House of Representatives unanimously approved a proposal to prohibit online sweeps by a 99-0 vote on Monday. Sen. Adam Bass’ SB 181, which was brought on behalf of the Attorney General and the Louisiana State Police, passed in the Senate by a 39-0 vote at the end of April.
On Tuesday, the Senate concurred (again, unanimously) on the House’s small amendments, which the House speaker called “technical” and which did little more than tweak some language.
The bill will soon go before Gov. Jeff Landry’s desk to be signed into law. If and when that happens, Louisiana will follow Montana as the second state to explicitly outlaw sweeps gaming this year. An approved bill in Nevada which is awaiting the governor’s signature could also be construed to apply to sweeps but does not identify them by name.
Bill about protecting licensed gambling, say lawmakers
The bill would prohibit online games, contests or promotions that utilize a dual-currency system of payment and offer players the chance to win any prize or award or cash or cash equivalents. It also more widely targets any digital product that simulates casino-style gaming, lottery gaming or sports betting.
Under the provisions, operators wouldn’t be the only parties targeted. Suppliers and vendors, such as affiliates, platform providers, geolocation partners and advertisers would be prohibited from engaging in both black market and online sweepstakes-related activities. Violations would be punished through fines of up to $100,000 along with potential prison time of up to five years.
“So-called sweepstakes casinos claim to simply be a sweepstakes contest but are in fact unregulated and untaxed gambling,” said Bass at a Senate hearing earlier this year.
Rep. Debbie Villio introduced Basso’s legislation during the House debate and stated the legislation’s core aim is to curb black market gaming activity in the state with no reference to sweepstake casinos in particular.
During the debate, one lawmaker had questions about the aim of this bill as it pertained to existing Louisiana casinos .
“We are trying to move this online iGaming addiction to more brick-and-mortar establishments that are actually employing people?” asked Rep. Steven Jackson.
“I think what I would say to that question is [that] this is is to protect our licensed Louisiana gaming operators,” responded Villio.
Fighting sweeps and terrorism together?
While the bill clearly defines sweepstakes casinos, other parts of the legislation conflate sweepstakes operators with offshore operators, including those with ties to terrorism.
The bill’s summary notes that as well as prohibiting sweepstakes gaming, it would prohibit companies from doing business with terrorist-supporting countries.
Prior to approving a gaming license application, the Louisiana Gaming Control Board (LGCB) shall determine whether the applicant or any of its affiliates has knowingly profited from gambling in a jurisdiction that is on a terrorism black list or designated as a state sponsor of terrorism by the U.S. Department of State.
Sweeps association calls decision ‘a step backward’
In statement provided to SBC Americas by the Social and Promotional Games Association (SPGA) noted it is “disappointed” by the House vote.
“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,” wrote the SPGA.
“This bill carelessly conflates legal entertainment with illegal gambling, without evidence of harm. It also threatens Louisiana’s economy by stifling digital innovation and driving compliant companies out of the state. It’s a step backward for consumer choice, lawful innovation, and common sense.”
Bass addressed the “free-to-play” promotions argument earlier this year by stressing at a Senate hearing that the LGCB and attorney general “have no interest in going after Starbucks or Marriott or McDonald’s and are solely focused on putting an end to sweepstakes casinos in this state.”
