Louisiana House advances bill to ban online sweepstakes casinos

Louisiana could soon ban online sweepstakes casinos as Senate Bill 181 (SB 181) has cleared key steps in the House and now awaits a final vote. The bill, introduced by Sen. Adam Bass, will head straight to Governor Jeff Landry for a signature if passed without changes.

SB 181 passed the Senate unanimously in April and was approved by the House Committee on Administration of Criminal Justice last week. It then cleared the Legislative Bureau without amendment and is now ready for a third reading on the House floor.

The bill targets unregulated online platforms operating as sweepstakes contests. It would outlaw electronic games that use dual-currency systems to award cash or prizes, closing a loophole in state law.

Additionally, it makes a clear distinction between illegal gambling and legal promotional giveaways by retailers. Bass emphasized that the bill is aimed at casino-style sweepstakes operations, not loyalty programs or promotional contests.

Violators would face up to $100,000 in fines and five years in prison. The law would apply not just to operators but also to affiliates, software providers, geolocation services, and advertisers involved in promoting these sites.

Louisiana would become the second state, after Montana, to ban these types of platforms. The Treasure State became the first state to officially ban sweepstakes gambling earlier this month after Governor Greg Gianforte signed Senate Bill 555 into law, set to take effect October 1.

The Social and Promotional Games Association (SPGA) and sweepstakes providers like VGW oppose the legislative pushes, arguing their platforms are legal under federal law because no purchase is necessary to play. Meanwhile, opponents of these platforms argue that these sites operate as unregulated, untaxed casinos and pose consumer risks.

The House is expected to vote on SB 181 soon.