The Louisiana Senate unanimously approved SB 181 in a 39-to-0 vote on Tuesday to ban sweepstakes gambling and penalize operators, affiliates, suppliers, and investors.
Louisiana Senate Bill 181 Defines Gambling By Computer
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.”
Sweepstakes Operators Utilize A Dual-Currency System
Sweepstakes casinos are free online gaming platforms that allow players to enjoy casino-style games, such as blackjack, roulette, and slots, without spending real money.
They operate under a sweepstakes model, allowing players to win real cash prizes using virtual currencies like Gold Coins and Sweeps Coins.
Although sweeps operators do not require gambling with real money, the platforms also allow players to redeem their virtual coins for real money or prizes.
Since the dual-currency model is still being used, sweeps operators would now be classified as illegal gambling operators under SB 181.
Illegal gambling by computer would include such casino-style gaming, such as slot machines, video poker, and table games, including blackjack, roulette, craps, and poker.
The measure also mentions sports wagering and lottery games, including draw games, instant win games, keno, and bingo.
Penalties Include Fines Up To $100,000 Per Occurrence
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.
In addition to the criminal penalties described in present law and proposed law, any violation is also a deceptive and unfair trade practice, subject to any actions and penalties provided for in the Unfair Trade Practices and Consumer Protection Law.
If signed into law, SB 181 would go into effect on Aug. 1.