Early in July, Louisiana Attorney General Liz Murrill declared online sweepstakes casinos illegal. State Senator Rick Edmonds asked if these platforms, often called sweepstakes or social gaming, follow state gaming laws. Murrill said they do not.
She explained that these sites use “Gold Coins” and “Sweepstakes Coins” to mimic gambling. Charging fees, keeping some funds, and giving prizes makes them illegal under Louisiana’s gambling laws. The state does not allow online casino gambling without a law or public vote.
Murrill noted that sweepstakes casinos are not like legal promotions by companies like Marriott. These platforms run all year to profit from sales, not to offer real sweepstakes. This ruling closes a loophole that lets these sites claim they were not gambling.
The Louisiana Gaming Control Board (LGCB) acted quickly as the iGaming market came into focus. On June 17, 2025, it sent cease-and-desist letters to over 40 online gambling sites, with sweepstakes casinos well-represented. LGCB Chairman Christopher B. Hebert said, “We won’t allow illegal operators to harm our citizens or our gaming industry.”
The LGCB, Attorney General’s Office, and State Police Gaming Division are watching these activities. They plan to send more letters to other operators. About 90 sweepstakes casinos were active in Louisiana before this action.
Violators could face serious penalties. These include up to five years in prison, fines up to $20,000, and consumer fraud charges. The LGCB has also started seizing assets and investigating crimes. For instance, Chanced, a major sweepstakes casino, closed its Louisiana operations after getting a letter.
On June 17, 2025, Governor Jeff Landry vetoed Senate Bill 181. The bill, which passed both legislative chambers, aimed to ban sweepstakes casinos clearly. Landry said existing laws and LGCB actions were enough. He called the bill “redundant.”
This veto led to Murrill’s legal opinion and more cease-and-desist letters. It showed the state’s resolve to use current laws to stop illegal gaming. Some criticized the veto, saying it might let sweepstakes casinos continue. But Murrill and others believe current laws give enough power to shut them down.
Louisiana’s actions are part of a larger trend. States like Michigan, Montana, and Washington have banned sweepstakes casinos. Louisiana is now the fourth state to take a strong stand. Nearby Mississippi also sent cease-and-desist letters to operators like Chumba Casino.
The Social Gaming Leadership Alliance claims sweepstakes models are legal and used widely, but regulation will likely be required for Louisiana to end its enforcement efforts.
This crackdown shows Louisiana’s focus on protecting people and keeping gaming fair. While online sports betting is legal, online casino gambling is not. The LGCB’s efforts aim to enforce these rules. As actions continue, sweepstakes casinos face big challenges in Louisiana and other states.
