Louisiana Governor vetoes bill to ban sweepstakes casinos

Louisiana Governor Jeff Landry has vetoed a bill that would have banned sweepstakes casinos in the state, calling the legislation unnecessary and overly broad.

Senate Bill 181, which passed unanimously in both the House and Senate, sought to outlaw gambling platforms that use dual-currency systems—a model commonly used by sweepstakes casinos.

The bill proposed steep penalties, including fines between $10,000 and $100,000 and prison terms of up to five years. In a veto letter dated June 12, Landry said the state already has the legal tools to address illegal gambling.

“This bill attempts to criminalize certain secondary gambling activities on the internet that are already prohibited in Louisiana,” he said. “Our current Louisiana Gaming Control Board has the regulatory authority, control, and jurisdiction over all aspects of gaming activities and operations pursuant to the Louisiana Gaming Control Law.”

He pointed to the Louisiana Gaming Control Board, the State Police Gaming Enforcement Division, and the Attorney General’s Office as agencies currently handling enforcement efforts. According to Landry, the existing system has already proven effective, citing recent cease-and-desist actions against offshore operators.

He also warned that the bill’s language was too vague and could interfere with current investigations and legal actions. As a result of the veto, sweepstakes casinos could potentially remain operational in Louisiana.

While the legislature has the authority to override the veto, such a move is considered unlikely.

In the U.S., governors can veto bills even after they pass the legislature. In November, New York Governor Kathy Hochul did this by rejecting a bill to speed up casino licensing in New York City.

In April, the Social and Promotional Games Association (SPGA) warned that Louisiana’s Senate Bill 181 could wrongly label legal promotional prize draws as illegal gambling.

Many states are taking aggressive action against these platforms. Michigan’s Gaming Control Board has been issuing cease-and-desist orders that have led to several sweepstakes casinos exiting the state. In New York, Attorney General Letitia James announced last week that her office shut down 26 sweepstakes operators. 

The New York Senate also passed a bill aimed at banning online sweepstakes casinos and sportsbooks this week, which now heads to the State Assembly. With this move, the state joins Connecticut and Montana in pursuing legislation aimed at curbing sweepstakes gaming practices. In contrast to these states, for now, Louisiana is choosing to rely on existing enforcement mechanisms rather than new legislation.