Louisiana Bill SB 181 Targets Online Sweepstakes Gambling

On April 4, 2025, Louisiana introduced Senate Bill 181 (SB 181), which aims to ban online sweepstakes gambling within the state. The bill, filed by Senator Adam Bass, would prohibit the operation and promotion of online sweepstakes casinos, defining illegal sweepstakes as any game or promotion available on the internet or through mobile devices that uses a dual-currency system. Players can exchange these currencies for cash or prizes, simulating casino-style gambling, lottery games, or sports betting.

SB 181 directly targets a growing trend of unregulated online gambling platforms that operate under the guise of sweepstakes. These platforms allow s to participate in games using free virtual coins, but they also offer players the option to purchase additional coins with real money, which can later be redeemed for cash or prizes. The bill would prohibit these types of activities, labeling them as illegal “gambling by computer.”

Expanding the Scope: Operators and Suppliers at Risk

The bill goes beyond regulating operators alone; it also targets s, suppliers, geolocation providers, media s, and anyone connected to the operation of illegal sweepstakes platforms. This move is in line with efforts in other states to target the entire ecosystem of online sweepstakes casinos. Anyone found violating the law would face substantial fines—up to $10,000 per instance—and could be sentenced to up to five years in prison. The bill also includes penalties for civil violations under the state’s deceptive trade practice laws, which could lead to additional fines.

The Louisiana Gaming Control Board and the Department of Public Safety and Corrections would have the authority to investigate and enforce violations, including issuing cease-and-desist orders. This development is part of a broader trend across the United States, with states like Maryland, New York, New Jersey, and Illinois also considering similar measures against sweepstakes gambling.

Sweepstakes Gambling Seen as Unfair Competition

The push to regulate sweepstakes gambling stems from concerns that these unregulated platforms present unfair competition to legal, licensed casinos. Lawmakers in various states, including New York, view these platforms as a threat to their own state-regulated gaming industries. New York Senator Joseph Addabbo Jr. recently stated, “These products and operations are untaxed and unregulated. They present unfair competition to the state’s legal, highly regulated and economically important casinos.”

In addition to Louisiana, states like Connecticut and Nevada are taking action. Connecticut’s SB 1235 would make operating illegal sweepstakes gambling a Class D felony, while Nevada’s SB 256 seeks to increase penalties for operators of illegal online gambling platforms.

SPGA Responds to SB 181

In response to SB 181, the Social and Promotional Games Association (SPGA) issued a statement criticizing the bill for misclassifying legitimate sweepstakes as illegal gambling. The SPGA argues that the bill could inadvertently criminalize lawful promotional activities, such as loyalty and rewards programs used by major companies like airlines and hotel chains. The association emphasized that social sweepstakes, which are typically free to play, do not compete with real-money casinos because the vast majority of s never spend any money.

“The misguided legislation endangers lawful businesses and sends a chilling message to investors, jeopardizing Louisiana’s burgeoning tech sector,” the SPGA warned.

Other States the Effort

Louisiana’s efforts are part of a wider movement across the United States. States like Maryland and New York have already ed or are moving forward with similar legislation targeting sweepstakes gambling. Meanwhile, lawsuits are also underway, such as a pending case in California against Stake.com, a sweepstakes provider accused of violating the state’s gambling laws.

While the SPGA and some industry defend sweepstakes as a legal promotional tool, the tide is turning in favor of stricter regulation. Louisiana’s bill and the broader national efforts to regulate sweepstakes gambling reflect growing concerns over the impact of unlicensed online gaming platforms and their effect on state economies and legal gambling operations.

Source:

Louisiana is the latest state in which lawmakers are mulling a ban on online sweepstakes casinos, sbcamericas.com, April 7, 2025.