Louisiana AG Declares Sweepstakes Illegal Gambling

Sweepstakes Ruled as Gambling

Murrill’s opinion brands online sweepstakes platforms, which mimic casino games like slots, poker, and blackjack, as illegal under Louisiana statutes, including La. R.S. 14:90 and 14:90.3. These sites let players buy virtual “Gold Coins” and receive “Sweep Coins” to play for cash or prizes.

However, Murrill argues they’re not promotional but “persistent, predatory, and profit-driven,” unlike legitimate sweepstakes from brands like McDonald’s. “Paying for virtual coins to play casino games for money is gambling, plain and simple,” she stated, citing court rulings against similar “internet café” schemes.

These platforms lack state licensing, age verification, or “know your customer” checks, violating Louisiana’s ban on unregulated internet gaming.

Regulatory Crackdown Intensifies

The opinion follows Governor Jeff Landry’s veto of Senate Bill 181, which aimed to ban online sweepstakes casinos. Landry called the bill redundant, arguing existing laws already address illegal gambling.

Yet, Murrill’s ruling challenges that stance, aligning with the Louisiana Gaming Control Board’s (LGCB) aggressive enforcement.

On June 17, dubbed “Black Tuesday” by the industry representatives, the LGCB issued cease-and-desist orders to operators like Bovada, likely targeting sweepstakes platforms too. “Louisiana won’t tolerate illegal operators,” said LGCB Chairman Christopher B. Hebert.

The Department of Justice, LGCB, and the Louisiana State Police can pursue criminal and civil actions, including asset seizures, restitution, and racketeering charges. Penalties include up to five years in prison and $20,000 fines for illegal gambling, plus $5,000 per violation under consumer protection laws.