Louisiana House Bill 53 went through the Legislative Bureau. It’s expected to get its third reading in the Senate within the next week. The bill aims to classify sweepstakes casinos as racketeering, which would allow stricter enforcement. It’s the latest example in the current nationwide crackdown on these platforms. If HB 53 passes the Senate, it will head to Gov. Jeff Landry’s desk for his signature or veto.
Essentially, the difference in classifying sweepstakes casinos under Louisiana’s racketeering laws is the more severe consequences than an outright ban. The bill uses the language “gambling by computer,” which covers sweepstakes casinos.
Classifying sweepstakes casinos as illegal gambling makes it easier for Louisiana lawmakers to crack down on these platforms, as racketeering enables stronger enforcement than just cease-and-desist letters.
House Bill 883 is another measure that targets dual-currency platforms, classifying it as illegal gambling. Since this is the main model of sweepstakes casinos, it would allow enforcement against them as well.
This bill recently passed through the House, so it’s already building momentum.
Earlier this year, Gov. Landry vetoed Senate Bill 181, stating that the language was too vague. This set a precedent of anti-sweeps legislation getting vetoed by the Louisiana governor, which gives some hope for sweepstakes casinos within the state.
On the flip side, the fact that one bill already got vetoed means that lawmakers made adjustments to the new measures to ensure that this doesn’t happen again.
With that in mind, there’s a reasonable chance that these new anti-sweeps bills in Louisiana will go through.
Louisiana would join a long list of states that have taken action against sweepstakes casinos in the last year, including California. Other states in the middle of legal action vs. these platforms include Oklahoma and Minnesota.
It raises the question about whether such platforms have a future within the U.S. market. It’s clear that states are taking it upon themselves to prevent sweepstakes casinos from continuing to operate within the gray market.
While the Social Gaming Leadership Alliance (SGLA) has continued to speak out in support of sweepstakes casinos, even rebranding them as “social plus games” to emphasize that they’re just for fun, it’s unclear what the future holds for this industry.
It’s likely that sweepstakes casinos will have to completely revamp their model to continue to operate in the U.S.
