The Louisiana House of Representatives unanimously approved a proposal to prohibit online sweepstakes casinos by a 99-0 vote on Monday. Sen. Adam Bass’ SB 181 passed in the Senate by a 39-0 vote at the end of April.
Louisiana Senate Bill 181 Expands Definition Of Gambling By Computer
SB 181 will soon go before Gov. Jeff Landry’s desk to be signed into law. If approved by Landry, Louisiana will follow Montana as the second state to outlaw sweeps gaming this year.
Present law in Louisiana defines “gambling by computer” as the “intentional conducting, or directly assisting in the conducting as a business of any game, contest, lottery, or contrivance whereby a person risks the loss of anything of value in order to realize a profit when accessing the internet, World Wide Web, or any part thereof by way of any computer, computer system, computer network, computer software, or any server.”
Proposed law in SB 181 retains present law and adds that “any games, contest, or promotion that is available on the internet or accessible on a mobile phone, computer terminal, or similar access device that utilizes a dual-currency system of payment allowing the player to exchange the currency for any prize or award or cash or cash equivalents, or any chance to win any prize or award or cash or cash equivalents, and simulates any form of gambling shall constitute illegal gambling by computer and shall not be considered a legal sweepstakes.”
SB 181 requires the La. Gaming Control Board (LGCB) and the La. State Police (LSP) to enforce the provisions of proposed law. The bill proposes fines up to $100,000 per occurrence and prison terms up to five years for violators.
Social And Promotional Games Association Opposes SB 181
The Social and Promotional Games Association (SPGA) is also disappointed by Monday’s vote in the Louisiana House, stating that SB 181 threatens global corporations and undermines consumer choice.
“Legal sweepstakes platforms operate under well-established guidelines and are used by millions of adults, including Fortune 500 companies like Microsoft and Starbucks, to engage consumers through lawful, free-to-play promotions,” wrote the SPGA.
“This bill carelessly conflates legal entertainment with illegal gambling, without evidence of harm. It also threatens Louisiana’s economy by stifling digital innovation and driving compliant companies out of the state. It’s a step backward for consumer choice, lawful innovation, and common sense.”
If signed into law, SB 181 would go into effect on Aug. 1.