The Social and Promotional Games Association (SPGA) has released a statement on Louisiana Republican State Senator Adam Bass’ Senate Bill 181, a measure that would ban sweepstakes gaming by classifying the activity as “illegal gambling.”
Under SB 181, “Gambling by computer” includes “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.”
Operators that allow “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 “simulate any form of gambling shall constitute illegal gambling by computer and shall not be considered a legal sweepstakes.”
The bill goes on to state that violators will be punished with fines ranging between $10,000 and $100,000 and could potentially be treated as offenders of the state’s deceptive and unfair trade practice law.
SPGA Urges Louisiana Lawmakers To Reject SB 181 Since Businesses Offer Sweepstakes-Style Promotions
The Social and Promotional Games Association (SPGA) vehemently opposes SB 181 since it “recklessly misclassifies legitimate sweepstakes as illegal gambling.”
The SPGA released this statement on Sunday, calling on Louisiana lawmakers to reject the measure:
“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.
“Even more troubling, SB181’s overly broad definitions could unintentionally criminalize loyalty and rewards programs run by some of the most respected brands in the country. Programs like Marriott Bonvoy, United MileagePlus, Delta SkyMiles, and Hilton Honors often offer sweepstakes-style promotions and prize drawings as part of their customer engagement…
“… Contrary to the assumptions behind this bill, research shows that social sweepstakes do not compete with real-money casinos. These games operate under strict ‘no purchase necessary’ rules, ensuring they remain free to play for everyone. In fact, the vast majority of users never spend a dime — they play for entertainment and the excitement of winning real prizes at no cost. Lumping these games in with gambling is not just legally inaccurate — it’s economically and culturally tone-deaf.
The SPGA also mentioned, “SB181 discourages venture capital investment, potentially stifling the development of emerging technologies, including artificial intelligence. This legislative overreach positions Louisiana as hostile to innovation, putting the state at a competitive disadvantage compared to more forward-thinking regions.”
In addition, the SPGA is urging “Louisiana legislators to halt this ill-conceived bill immediately and engage with experts to craft policies that protect consumers without dismantling legitimate businesses or deterring technological advancement.”