Louisiana House Advances Bill to Ban Sweepstakes Casinos

Legislative Progress

Senate Bill 181, introduced by Senator Adam Bass, targets unregulated online platforms operating as sweepstakes contests. The bill unanimously passed the House Committee on Administration of Criminal Justice and cleared the Legislative Bureau without amendments.

It is now positioned for a third reading on the House floor, with a final vote expected soon. If approved without changes, the bill will proceed to Governor Jeff Landry for his signature, potentially becoming law.

SB 181 aims to close a loophole in Louisiana’s gaming laws by prohibiting electronic games using dual-currency systems to award cash or prizes.

Senator Bass clarified that the legislation focuses on platforms mimicking casino or lottery-style gaming, not legitimate retailer promotions like loyalty programs.

Violators face severe penalties, including fines up to $100,000 and up to five years in prison, targeting operators, affiliates, software providers, geolocation services, and advertisers.

Broader Context

If enacted, Louisiana would become the second state after Montana to ban online sweepstakes casinos, following Montana’s Senate Bill 555, effective October 1, 2025, which broadly prohibits internet gambling.

Other states are taking similar steps. New York’s Senate Bill 5935, targeting dual-currency platforms, is progressing, with provider VGW exiting the state. Mississippi’s efforts stalled in concurrence, Maryland’s Senate passed a bill awaiting House approval, and Ohio, West Virginia, and Michigan are increasing scrutiny.

The Social and Promotional Games Association opposes SB 181, arguing it misclassifies legal sweepstakes and could harm legitimate businesses. However, Bass told the House committee that Louisiana residents wager $4.5 billion annually on unregulated platforms, justifying the crackdown.