Louisiana House approves bill to criminalize sweepstakes gaming as racketeering

Louisiana police car as the state's House passes a bill that considers sweepstakes devices racketeering activity.
Image: Gagliardi Photography / Shutterstock

A bill in Louisiana that considers certain gambling crimes “racketeering activity” has been approved by House members, sending the measure to the state Senate for consideration.

House Bill 53 advanced by an 86-11 vote on Monday night on the full House floor as a measure that aims to impose criminal penalties for operating electronic sweepstakes devices and bribing athletes. HB 53 got the full chamber’s approval after it was introduced and referred to the House Committee on Administration of Criminal Justice.

Earlier this month, the committee reported HB 53 favorably with a 12-0 vote. Now, the bill will undergo second reading in the Senate after its first reading on Monday.

House approves bill that imposes severe penalties

HB 53, introduced by Rep. Bryan Fontenot, proposes adding the operation of electronic sweepstakes devices and gambling in public to the definition of racketeering activity.

In the Pelican State, racketeering activity is “committing, attempting to commit, conspiring to commit, or soliciting, coercing or intimidating another person to commit any crime that is punishable under the following provisions of Title 14 of the Louisiana Revised Statutes of 1950, the Uniform Controlled Dangerous Substances Law, or the Louisiana Securities Law.”

Louisiana levies harsh penalties for facilitating racketeering activity. Under state law, individuals who commit racketeering activity are subject to fines of up to $1m.

The state can mandate prison sentences that can reach up to 50 years. Mandatory prison sentences are also on the table if the racketeering activity exceeds $10,000. State law requires a mandatory five-year prison sentence without the possibility of parole, and a suspended sentence or probation for racketeering activity that exceeds that threshold. Louisiana law can also require a person to complete up to 50 years of hard labor.

In addition to bribing athletes and electronic sweepstakes devices, HB 53 also considers gambling by computer, cockfight wagering and gambling in public to be racketeering activity.

HB 53’s approach to sweepstakes-style gaming

Fontenot’s measure considers online sweepstakes-style gaming to be an unlawful activity as Louisiana’s gaming regulator takes steps to outlaw sweepstakes casino operators.

HB 53 imposes penalties for online sweepstakes casinos after the Louisiana Gaming Control Board sent a round of cease-and-desist orders to illicit operators accepting customers in the state. The board sent the C&D after a formal ban dissolved.

Last year, Louisiana House and Senate members approved a piece of legislation that proposed a formal criminal ban on offshore and online sweepstakes casino sites. The bill, Senate Bill 181, was later vetoed by Gov. Jeff Landry. The politician vetoed the bill as he deemed it unnecessary amid the board’s enforcement actions through C&Ds and considered the bill’s language to be “overly broad”.

Another sweeps-focused bill in Louisiana

Lawmakers in Louisiana are also considering a bill that would place online games that leverage a dual-currency system of payment under the definition of illegal online gambling.

House Bill 883 not only targets online sweepstakes casino operators that use a dual-currency system of payment but also their platform providers and payment processors.

Under HB 883, the state’s Attorney General can issue C&Ds and seek temporary restraining orders or injunctions against violators. The bill, filed by Rep. Laurie Schlegel, underwent its first reading and was referred to the Committee on Administration of Criminal Justice.

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