Sweepstakes casino sites have earned a reprieve in Louisiana after Gov. Jeff Landry decided to veto a bill aimed at banning the vertical.
SB181, which passed through the state’s House of Representatives and Senate, sought to prohibit online games, contests or promotions that utilise a dual-currency system of payment and offer players the chance to win any prize or award or cash or cash equivalents, as well as any digital products simulate casino-style gaming, lottery gaming and sports betting.
However, Landry stated in his veto letter that he believes the legislation covers issues already being dealt with by Louisiana’s Gaming Control Board (LGCB), and some of its language is “overly broad”.
“Our current Louisiana Gaming Control Board has the regulatory authority, control and jurisdiction over all aspects of gaming activities and operations pursuant to the Louisiana Gaming Control Law,” said Landry.
In particular, Landry noted the steps the LGCB is taking to combat illegal gambling in Louisiana, including a cease and desist letter sent to Bovada and the operator’s subsequent exit from the state.
Landry continued: “The board, the Louisiana Attorney General’s Office, and the LSP Gaming Division are all monitoring this type of activity and will continue to issue additional cease-and-desist letters to similar illegal offshore wagering and illegal online sweepstakes companies that intentionally design their business models to circumvent Louisiana gaming laws and regulations.”
The Social and Promotional Games Association (SPGA), a trade group of several sweepstakes operators, described Landry’s decision as a “powerful affirmation” that not all online games are gambling.
“Innovation should not be met with prohibition,” said an SPGA spokesperson. “This legislation blurred critical legal distinctions and risked punishing legitimate businesses that comply with well-established sweepstakes laws and offer free-to-play experiences.”
Despite Landry’s veto, the sweepstakes casino sector has been dealt several significant blows in recent months, as Montana and Connecticut became the first two US states to bring into law bans against the vertical.
In May, the Mountain State became the first US state to explicitly ban the vertical when Gov. Greg Gianforte signed into law SB555, which amended Montana’s existing gaming laws to stipulate that the definition of internet gambling includes platforms that “allows consumers to place a bet using any form of currency, and make payouts of any form of currency”.
Meanwhile, earlier this week, Gov. Ned Lamont signed into law SB 1235 in Connecticut, banning online sweepstakes casinos and providing legal repercussions for their operation or promotion.
