Louisiana Gov. Jeff Landry vetoed the bill banning sweepstakes casinos in the state, stating it’s unnecessary.
On June 2, the Louisiana House passed Senate Bill 181 unanimously, following its passage in the Senate at the end of April.
Among its provisions, the bill classifies devices or platforms that use dual-currency payment systems as illegal. It calls for violation penalties of $10,000 to $100,000 and prison sentences of up to five years.
With the governor’s veto, sweepstakes casinos remain operational for now. However, legal action by the state’s authorities could change that.
Additionally, the Louisiana legislature has the authority to override the veto. Despite that, indications are that the chances of doing so are slim.
Governor Says Authorities Have Enough Power
In his June 12 veto letter, which The Closing Line published, Gov. Landry says:
“This bill attempts to criminalize certain secondary gambling activities on the internet that are already prohibited in Louisiana. Our current Louisiana Gaming Control Board has the regulatory authority, control, and jurisdiction over all aspects of gaming activities and operations pursuant to the Louisiana Gaming Control Law.”
The governor notes that the Board, the Louisiana State Police Gaming Enforcement Division, and the Louisiana Attorney General’s Office are all responsible for monitoring and regulating gaming in the state.
He adds that the state is already actively targeting illegal gambling, especially offshore and sweepstakes operators. Landry referenced successful cease-and-desist orders against offshore operators, demonstrating that the current system is capable of addressing the issue without the need for new legislation.
Landry goes on to say that the bill is too broad and can interfere with current enforcement actions. He writes, “For these reasons, Senate Bill 181 is not necessary.”
Louisiana Likely to Follow New York and Michigan’s Approach
Landry’s belief that state authorities can handle the issue of sweepstakes casinos aligns with successful enforcement actions seen in other states.
In early 2024, Michigan adopted a tough approach towards offshore and sweepstakes casinos. Following a series of cease-and-desist letters and legal threats from the Michigan Gaming Control Board, all sweepstakes casinos ceased operations in the state.
New York took a similar approach. Last week, New York Attorney General Letitia James announced that her office had shut down 26 sweepstakes operators. With the addition of a dozen or so platforms that had already left the state, only a handful of operators remain. However, they are likely to follow suit.
Elsewhere, Maryland and Connecticut gambling regulators also aggressively pursued sweepstakes operators, although with mixed results.
Connecticut Governor Signs Sweeps Ban Bill
The Connecticut Department of Consumer Protection Gaming Division (DCP) has already proven successful in pursuing sweepstakes casinos.
Earlier this year, it suspended the content provider license of High 5 Games due to its connection to High 5 Casino. The two eventually settled, and High 5 Games paid a $1.5 million fine.
The regulator’s enforcement actions resulted in a handful of other operators exiting the state. That includes industry leader VGW’s Chumba Casino, LuckyLand Slots, and Global Poker.
However, while DCP has been aggressive, it has not chased all platforms away. That will change, as Connecticut Gov. Ned Lamont signed Senate Bill 1235 into law, making sweepstakes casinos illegal in the state.
This means that Connecticut will become the second state to ban the platforms. Montana became the first state to do so last month.
Meanwhile, Nevada is taking a different but complementary approach. On June 5, Gov. Joe Lombardo signed Senate Bill 256, which strengthens state regulators’ authority to pursue unlicensed and out-of-state operators.
The law doesn’t explicitly prohibit sweepstakes casinos. Still, the additional legal power of the state will likely result in most platforms exiting Nevada.
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