To introduce severe penalties

Louisiana bill seeks to classify online sweepstakes and sports bribery as racketeering crimes

2026-02-03
Reading time 1:43 min

A legislative proposal in Louisiana could bring sweeping changes to how the state prosecutes certain gambling and bribery offenses, with lawmakers considering a measure that would treat them as racketeering crimes under state law.

House Bill 53, introduced by Rep. Bryan Fontenot, proposes to expand the state’s definition of racketeering activity to include gambling via electronic sweepstakes devices, computer gambling, and gambling in public spaces.

The bill also targets bribery involving athletes and other sports participants, as well as wagering by prohibited individuals, in response to a rise in sports betting scandals across U.S. collegiate and professional leagues. The bill has been referred to the House Committee on Administration of Criminal Justice for consideration.

Unlike conventional gambling laws, racketeering statutes carry heavier penalties in Louisiana. Individuals convicted of racketeering could face fines of up to $1 million and prison sentences of up to 50 years, including hard labor. For cases involving over $10,000, state law mandates a minimum sentence of five years without the possibility of parole, probation, or a suspended sentence.

The initiative follows recent regulatory efforts aimed at curbing the rise of unlicensed online gambling platforms in the state. The Louisiana Gaming Control Board (LGCB) has issued cease-and-desist orders against sweepstakes-style casino operators serving Louisiana-based customers.

The enforcement actions came after Governor Jeff Landry vetoed a bill that would have imposed a formal ban on these operations, citing that the regulator already had sufficient authority to act against them.

Attorney General Liz Murrill also weighed in on the issue, issuing a legal opinion in July 2025 that deemed dual-currency sweepstakes platforms unlawful under existing Louisiana statutes. The opinion, requested by Senator Rick Edmonds, was released in the aftermath of the governor’s veto of the proposed ban.

States such as New York and Connecticut have enacted penalties against sweepstakes that include fines, license revocations, and misdemeanor charges. New York’s law imposes fines ranging from $10,000 to $100,000 per violation, while Connecticut classifies the offense under unfair or deceptive trade practices with penalties equivalent to a Class A misdemeanor.

Other states have introduced varying levels of enforcement. In New Jersey, sweepstakes operators can face fines up to $25,000 per violation and be compelled to return funds earned through illegal activity. California allows for jail sentences up to one year and fines up to $25,000.

Montana, which was the first state to implement a direct ban, classifies violations as felonies, carrying potential prison terms of up to 10 years. Nevada, where unlicensed sweepstakes operations are also considered felonies, imposes similar penalties, with fines reaching $50,000 and possible 10-year prison sentences.

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