Louisiana Attorney General Deems Sweepstakes Casinos Illegal Gambling
Louisiana Attorney General (AG) Liz Murrill has issued a formal legal opinion declaring that online sweepstakes casinos operating in the state constitute illegal gambling activities under existing state laws. The opinion, released on July 2, asserts that platforms offering casino-style games such as slots, blackjack, and roulette through dual-currency models are in violation of multiple provisions of Louisiana's gambling statutes, including laws pertaining to illegal gambling by computer.
LISTEN TO THIS ARTICLE:The legal assessment was issued in response to an inquiry from Sen. Rick Edmonds, who had previously sponsored Senate Bill 181, legislation aimed at banning online sweepstakes casinos. Although the bill passed the Louisiana Legislature earlier in the year, it was vetoed by Governor Jeff Landry.
Related: Louisiana Gov. Vetoes Bill to Ban Sweepstakes CasinosThe governor argued that current laws already provided sufficient tools for enforcement and that both the Attorney General's Office and the Louisiana Gaming Control Board (LGCB) were empowered to take action against unauthorized operators.
Following the veto, Murrill worked in coordination with the LGCB to issue multiple cease-and-desist orders to entities operating or promoting online sweepstakes casinos within Louisiana. Her legal opinion emphasizes that businesses running these platforms are disguising gambling operations as sweepstakes or social games, but that their core function meets the legal criteria for gambling and computer-based gambling under state law.
The AG cited several characteristics of these online operations that led to her determination. She pointed to legal precedents in which courts identified key indicators suggesting that the primary intent of such platforms is to facilitate gambling.
These indicators include a digital environment resembling a casino, continuous gameplay without temporal limitations, high payout percentages, and restricted redemption options that often encourage repeated purchases. Users typically value the sweepstakes entries more than the nominal product offered, often repurchasing in-game currency immediately after losing.
According to Murrill's legal opinion, this exchange structure aligns with the definition of gambling under Louisiana law. She further emphasized that these platforms lack essential regulatory safeguards, such as proper age verification, geolocation controls, and know-your-customer protocols, putting consumers at risk.
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Industry trade groups, including the Social and Promotional Games Association (SPGA), have pushed back against the AG's position. They argue that equating online sweepstakes casinos with illegal gambling could jeopardize legitimate promotional campaigns and loyalty programs run by major businesses.
However, Murrill distinguished between traditional promotional sweepstakes and the casino-style operations in question. She stated that legal sweepstakes, such as those run by companies like McDonald's or Starbucks, feature transparent rules, are time-limited, and offer non-monetary prizes intended to promote a product or service.
In contrast, the platforms she considers illegal operate year-round, require a purchase to engage, and are designed to resemble traditional gambling experiences with wagering mechanics and cash conversion options.
The SPGA responded to the legal opinion by criticizing the AG's interpretation, stating that it misrepresents the nature of its members' operations. The association maintains that its members employ responsible gaming measures, including age verification and clear terms of service. SPGA representatives also reiterated their efforts to engage with lawmakers to craft regulations aimed at eliminating bad actors without criminalizing the entire sector.
While Murrill's opinion does not carry the force of law in the way that legislation would, it signals a strong intent from the state's top legal authority to pursue enforcement against online sweepstakes casinos operating in Louisiana. The state has already taken action against sweepstakes casino operators through dozens of cease-and-desist orders, and more are likely to follow.
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