Legislators in several states continue targeting sweepstakes-style gambling.
The closest of which is Louisiana, which is just a signature away from banning sweepstakes casinos. The bill passed both legislative and heads to Gov. Jeff Landry’s desk.
Louisiana’s House and Senate approved SB181 by overwhelming margins. The bill would bar sweeps operators from operating in the Cajun State. The bill passed in the house in a 99-0 vote and 39-0 in the Senate. The final fate of the bill is in Landry’s hands.
Sweepstakes casino operators use a dual currency system to allow gamblers to play for real money. Users buy a virtual currency with no cash value and the operator will match their purchase with the same amount of sweeps tokens. Those sweeps tokens can then be redeemed for real cash and prizes.
Sen. Adam Bass said the platforms are “ripping off Louisiana citizens” and allow for “unregulated and untaxed gambling.”
For Americans outside the handful of states with a legal online poker industry, sweepstakes casinos typically provide their only legal option.
Other States Cracking Down
Louisiana is far from the only state heading down this path.
Nevada and Connecticut have both passed bills making sweeps casinos illegal. Like Louisiana, the bills are just a governor signature away from becoming law.
In New Jersey, the new SB4282 would ban the “sweepstakes model of wagering” and could fine offenders $250,000.
“We will not allow bad actors to exploit legal loopholes at the expense of consumers,” said Sen. John Burzichelli told Gambling News. “This bill will ensure that our laws are clear, our penalties are stronger, and that we have the tools necessary to shut down illegal sweepstakes gambling operations before they can cause further harm.”
A Connecticut bill is heading to Gov. Ned Lamont after being approved in both houses of the legislature. SB1235 makes operating or promoting a sweepstakes casino a Class D felony, carrying fines of up to $5,000 and five years in prison.
An additional part of the bill allows the governor to sign an agreement to enter the Multi-State Internet Gaming Agreement (MSIGA). Connecticut legalized online poker and could now join the country’s shared liquidity pact. Connecticut legalized online gaming in 2022, but haven’t launched online poker rooms yet. That may change after joining the MSIGA.
Some Efforts Fail, Industry Pushes Back
Efforts at restricting sweeps operators have come up short in several states, including Arkansas, Florida, Maryland, and Mississippi. Pennsylvania gaming regulators have also said they don’t have the legal authority to force out sweeps operators.
Sweepstakes operators have pushed back against the efforts to ban their platforms. They argue that users can play for free and there is no stipulation that players must purchase anything. Operators say the sweeps offerings are more akin traditional mobile gaming.
The Social and Promotional Games Association released a statement noting that the Louisiana bill not only bans sweepstakes casinos, but also promotional efforts from other companies as well.
“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,” the trade group noted. “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.”
