Louisiana Lawmakers Eyeing Sweepstakes Gaming Prohibition

• Louisiana lawmakers are considering a new bill to prohibit sweepstakes casino and sports betting style gaming
• A Senator introduced bill SB 181 to prohibit the games
• The Social and Promotional Games Association warns against the bill’s legalization

Louisiana is the latest state to consider a bill to prohibit sweepstakes casino and sports betting style gaming.

Sen. Adam Bass (R-36) introduced SB 181, a bill to ban dual-currency sweepstakes gaming in Louisiana, prohibiting casino-style gaming such as slot machines, lottery games, and sports betting.

If approved, the Louisiana Gaming Control Board will have the ability to bring civil enforcement actions and impose civil penalties on companies engaging in the illegal form of sweepstakes gaming.

Proposed Law To Ban Sweepstakes Gaming

Bass’s legislation prohibits sweepstakes game that utilizes a dual-currency system of payment that allows a customer to exchange the currency for any prize, award, cash, cash equivalents, or a chance to win a prize that simulates a form of gambling.

The bill will ban sweepstakes gambling that mirrors the following:

• Casino-style gaming such as slot machines, video poker, and table games such as blackjack, roulette, craps and poker
• Lottery games, including draw games, instant win games, keno, and bingo
• Sports betting

If the bill is approved, the Louisiana Gaming Control Board will have the ability to fine operators, promotors, media affiliates, or providers if they engage in or procure revenue from the illegal form of sweepstakes gaming. The board will be able to levy fines from $10,000 to $100,000 per incident.

The legislation currently sits in the Committee on Judiciary B.

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Concerns Over Prohibitions

The Social and Promotional Games Association (SPGA) released a statement on the bill, claiming that it misclassifies all legitimate Louisiana sweepstakes as illegal gambling. The SPGA describes the introduced bill as “misguided legislation” which endangers lawful business.

“For decades, companies – from fast-food chains to app developers – have utilized sweepstakes as legal promotional tools. SB181’s failure to distinguish between these lawful activities and gambling not only threatens these businesses but also undermines established legal frameworks that support innovation and economic growth,” an SPGA spokesperson said in a press release.

The SPGA spokesperson said the bill incorrectly puts Louisiana’s tech sector at risk. The proposed law will unintentionally criminalize loyalty and rewards programs, such as Marriott Bonvoy, United MileagePlus, Delta SkyMiles, and Hilton Honors, which at times offers sweepstakes-style promotions and prize drawings as part of their customer engagement.

“These well-established, widely used programs could be swept into legal jeopardy under the current language of the bill—an outcome that would be both absurd and deeply damaging to consumer trust.”