Governor Jeff Landry vetoed SB181, the Anti-Sweepstakes Gaming Bill approved by local legislators in Louisiana. According to Gov. Landry, the reason he vetoed SB181 is that he deemed it “not necessary” in governing sweepstakes casinos.
Gov. Landry also criticized SB181’s broad definitions and the specific language it used regarding enforcement. Gov. Landry noted:
“This bill attempts to criminalize certain secondary gambling activities on the internet that are already prohibited in Louisiana.”
He stressed that the Louisiana Gaming Control Board (LGCB) has the regulatory authority, control, and jurisdiction over all iGaming matters. This includes activities and operations pursuant to the Louisiana Gaming Control Law.
Gov. Landry’s Take on the Anti-Sweepstakes Gaming Bill
Sen. Adam Bass introduced SB181 last April to ban sweepstakes sites that mimic illegal online casinos. The bill proposed penalties of up to $100,000 and five years in prison for anyone who violates the law.
Lawmakers defined sweepstakes as online contests or games using dual currencies, including virtual money convertible to real cash or prizes. On April 29, the Senate unanimously passed SB 181 with a 39-0 vote. Next, the House approved the bill 38-0 on June 3 and sent it to Landry’s desk on June 8.
However, Gov. Landry cited that the broadness of SB181’s language could potentially impede or harm current enforcement on online casinos.
“The Board’s firm stance against such operations is aimed at protecting Louisiana residents from unregulated gambling activities that violate state laws,” Landry stated.
He added:
“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.”
Support for Gov. Landry’s Decision
The Social and Promotional Games Association (SPGA), representing sweepstakes operators, quickly praised Governor Landry’s veto decision. A SPGA spokesperson stated that Landry’s veto confirmed that not all online games qualify as gambling. They said:
“This legislation blurred critical legal distinctions and risked punishing legitimate businesses that comply with well-established sweepstakes laws and offer free-to-play experiences.”
They added the Anti-Sweepstakes Gaming Bill threatened innovation and blurred key legal distinctions in sweepstakes law. Furthermore, the spokesperson warned it could have harmed lawful businesses offering free-to-play games and following existing regulations.
Meanwhile, Landry has not yet acted on HB639, another major gambling bill from this legislative session. This proposal seeks to raise the tax rate for online sportsbooks from 15% to 21.5%.
Louisiana joined Florida, Mississippi, and Maryland in halting legislative attempts to ban controversial sweepstakes gaming.