Louisiana Pushes Ahead With Bill Banning Sweepstakes Casinos Despite the Governor’s Veto Last Year

(AsiaGameHub) –   Louisiana legislators are once again advancing a measure to explicitly outlaw sweepstakes casinos across the state. This action follows Governor Jeff Landry’s veto of a comparable bill last session, a move he justified by pointing to existing rules that already forbid such platforms.

The state’s House of Representatives approved HB883 last week with a unanimous 99-0 vote. The legislation has since been passed along to the Senate’s Judiciary B Committee for further consideration.

The bill’s wording is the same as the one that cleared both legislative bodies last year. It defines illegal gambling as “any game, contest, or promotion that is available on the internet or accessible on a mobile phone, computer terminal, or similar access device that uses a dual-currency payment system enabling a player to exchange the currency for any prize or award, cash, or cash equivalents, or any chance to win any prize or award, cash, or cash equivalents, and simulates any form of gambling constitutes gambling by computer.”

The bill notes that current law already forbids “gambling by computer and establishes penalties for violations.”

However, it clarifies that the “Proposed law specifies additional actions that qualify as gambling by computer, such as offering dual-currency games that simulate any form of gambling.”

Problem Already Being Solved

Governor Landry maintains that the present statutes are adequate for the state to take legal action against sweepstakes casinos, which operate on dual-currency models.

Explaining his veto last year, Landry remarked, “This bill is a solution looking for a problem that is already being addressed by our current framework.”

“This bill seeks to criminalize specific secondary internet gambling activities that are already illegal in Louisiana,” he continued.

“Our existing Louisiana Gaming Control Board possesses the regulatory power, oversight, and jurisdiction over all gaming activities and operations as outlined in the Louisiana Gaming Control Law.”

He also expressed concern that “portions of the bill’s text are too vague and could be construed negatively, potentially undermining or obstructing our ongoing enforcement efforts against these bad actors.“

This year’s proposed legislation, nonetheless, features highly comparable language.

State Ramps Up Enforcement Action

Supporting Landry’s assertion that Louisiana’s gaming authorities already have enough power to combat illegal operators, the Gaming Control Board issued cease-and-desist letters to over 40 offshore and sweepstakes casinos soon after his veto. To date, at least 60 operators have ceased operations within the state.

Louisiana Attorney General Liz Murrill has also officially deemed sweepstakes casinos unlawful. She declared, “Following a review of applicable Louisiana statutes and legal precedent, it is the opinion of this office that online businesses offering casino-style games – purporting to be sweepstakes or social gaming platforms – are operating in violation of Louisiana law.”

While the new bill would grant the Attorney General expanded authority, Murrill is already confident in her existing power to close down these operators. She also cautioned companies that they remain “subject to Federal and State tax laws and liabilities.”

The Louisiana Department of Revenue has initiated legal action against VGW and WOW Vegas, claiming the firms are responsible for $44 million in back taxes.

Other States Banning Sweepstakes

Louisiana is not alone, as other states are also moving to outlaw sweepstakes casinos through new laws. Both Maine and Indiana have enacted bills this year that ban multi-currency gambling.

Last week, officials in Washington, D.C., also put forward a bill that would authorize iGaming while simultaneously prohibiting sweepstakes casinos.

It remains uncertain whether Gov. Landry will veto the bill again if it passes the Senate. Based on his past comments, it appears probable he would once again deem the law redundant and potentially complicating. The state’s legislative session concludes on June 1.