Louisiana Gov. Jeff Landry has vetoed SB181, a bill aimed at formalizing a criminal ban against offshore and sweepstakes casino sites.
In his veto letter, Landry effectively said he vetoed the bill because he deemed it unnecessary. He also expressed concern that some of the bill’s language was “overly broad”, a common criticism of pro-sweepstakes groups when it comes to bills targeting the vertical.
Landry says regulators have it under control
“This bill attempts to criminalize certain secondary gambling activities on the internet that are already prohibited in Louisiana,” he noted.
“Our current Louisiana Gaming Control Board (LGCB) has the regulatory authority, control and jurisdiction over all aspects of gaming activities and operations pursuant to the Louisiana Gaming Control Law.”
Landry cited the cease and desist letter LGCB sent to Bovada and its subsequent exit from the state as an example of how the board has these bad actors under control.
“The Board, the Louisiana Attorney General’s Office, and the LSP Gaming Division are all monitoring this type of activity and will continue to issue additional cease-and-desist letters to similar illegal offshore wagering and illegal online sweepstakes companies that intentionally design their business models to circumvent Louisiana gaming laws and regulations,” Landry continued.
Prior to being elected governor in 2023, Landry served as the state’s Attorney General.
While LGCB announced its efforts against Bovada, it has not publicly noted if it has taken action against other sites, offshore or sweepstakes.
The bil, put forth by Sen. Adam Bass, would have criminalized not only sweepstakes operators but suppliers that worked with offshore and sweepstakes casinos as well. Both chambers passed the bill unanimously en route to Landry’s desk.
SPGA quick to give Landry props
The Social and Promotional Games Association (SPGA), a trade group of several sweepstakes operators, was quick to applaud Landry’s decision.
“Governor Landry’s veto is a powerful affirmation that not all online games are gambling and that innovation should not be met with prohibition,” said a spokesperson for SPGA. “This legislation blurred critical legal distinctions and risked punishing legitimate businesses that comply with well-established sweepstakes laws and offer free-to-play experiences.”
Landry has yet to take action on the other major gambling measure passed by the legislature this session, HB639. The bill would increase the sports betting tax rate from 15% to 21.5%.
According to Sen. Stewart Cathey, the rate was a compromise between the industry and lawmakers after an initial version of the bill proposed a more than 100% increase to 32%.
