Louisiana Gov Vetoes Bill to Ban Sweepstakes Casinos
Louisiana Gov. Jeff Landry has vetoed Senate Bill 181 (SB 181), a measure that aimed to ban sweepstakes casinos operating in the state. The decision shows continued conflict in the US regarding the legal status of sweepstakes platforms.
LISTEN TO THIS ARTICLE:The bill, which passed unanimously through both chambers of the state legislature, was designed to prohibit gambling platforms that rely on dual-currency systems, a model frequently employed by sweepstakes casino operators. Despite the overwhelming legislative support, Gov. Landry determined that the bill was unnecessary and potentially disruptive to ongoing enforcement efforts.
Related: Connecticut Officially Bans Online Sweepstakes CasinosSB 181 included provisions for steep penalties, including fines ranging from $10,000 to $100,000 and possible prison sentences of up to five years for those found in violation. In a veto letter dated June 12, Gov. Landry stated that Louisiana already possesses sufficient legal tools to address illegal gambling.
He emphasized that the bill sought to criminalize certain internet-based gambling activities that are already prohibited under existing state law. This suggests that, in his opinion, the proposed legislation would duplicate or conflict with established enforcement mechanisms.
Landry highlighted that the Louisiana Gaming Control Board holds comprehensive authority over the regulation and oversight of all gambling operations under the Louisiana Gaming Control Law. He further noted that other state agencies, including the State Police Gaming Enforcement Division and the Attorney General's Office, are actively involved in enforcement and oversight.
According to the governor, these agencies have already demonstrated their effectiveness through recent actions taken against offshore gambling operators, including issuing cease-and-desist orders.
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Bill's Language an Issue
Another concern raised by Gov. Landry, a former attorney general, was the potential vagueness of the bill's language. He warned that the broad definitions and ambiguous terms within the legislation could create complications for ongoing investigations and interfere with existing legal proceedings.
By rejecting the bill, Landry asserted that the state would maintain its focus on enforcing current laws rather than introducing new measures that could cause legal uncertainty.
As a result of the veto, sweepstakes casinos using dual-currency models may continue to operate in Louisiana, at least for the time being. While the legislature holds the authority to override the governor's veto, the likelihood of doing so remains low, despite the bill's earlier unanimous support. Lawmakers have not yet indicated whether an override attempt will be pursued during the next legislative session.
Nationally, several states are taking active steps to restrict or ban sweepstakes-style gaming platforms. In Michigan, the Gaming Control Board has issued multiple cease-and-desist orders, prompting the withdrawal of several sweepstakes casinos from the state.
In New York, Attorney General Letitia James recently announced the shutdown of 26 sweepstakes operators. The New York Senate has also passed a bill targeting online sweepstakes casinos and sportsbooks, sending it forward to the State Assembly for further consideration.
Other states, such as Connecticut and Montana, have introduced or passed similar legislation aimed at limiting sweepstakes gaming operations. However, Louisiana, under Governor Landry's direction, is choosing a different path by relying on its current enforcement infrastructure rather than expanding its legal framework.
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