Louisiana Nears Statewide Ban on Online Sweepstakes Casinos

following Montana – to formally prohibit online sweepstakes gaming involving dual-currency systems.

Unanimous for SB 181

The proposal ed the House unanimously (99-0) on Monday, after the Senate had approved it 39-0 in late April. On Tuesday, the Senate quickly agreed to minor House amendments described as “technical.” The bill, introduced by Sen. Adam Bass on behalf of the Attorney General and Louisiana State Police, targets online games that simulate gambling and operate outside state oversight.

Under SB 181, any online promotion or game that uses a dual-currency format and offers cash or equivalent prizes would be banned. The bill applies broadly to virtual casino-style games, lotteries, and sports betting simulations.

Importantly, the legislation doesn’t just affect operators. s, platform providers, rs, and geolocation partners involved with sweepstakes casinos would also be barred from participation. Penalties include fines of up to $100,000 and up to five years in prison.

At a Senate hearing earlier this year, Bass stated, “So-called sweepstakes casinos claim to simply be a sweepstakes contest but are in fact unregulated and untaxed gambling.”

A Push to Protect Licensed Gambling

ers see the bill as a necessary step to safeguard Louisiana’s legal gambling industry from black market digital competitors. Rep. Debbie Villio, who introduced the measure in the House, emphasized its intent to curtail illegal gaming operations.

“This is to protect our licensed Louisiana gaming operators,” Villio said in response to questions about whether the bill might steer consumers toward brick-and-mortar casinos.

The bill also includes provisions related to national security. It prevents gambling companies from operating if they or their s have profited in countries designated as terrorist sponsors by the U.S. Department of State.

Industry Groups Push Back

The legislation has drawn criticism from the Social and Promotional Games Association (SPGA), which says it unfairly targets legal sweepstakes promotions.

“This bill carelessly conflates legal entertainment with illegal gambling, without evidence of harm,” the SPGA said. “It also threatens Louisiana’s economy by stifling digital innovation and driving compliant companies out of the state.”

Bass has stressed that the law won’t impact promotional sweepstakes offered by companies like Starbucks or McDonald’s. “The LGCB and attorney general have no interest in going after Starbucks or Marriott or McDonald’s,” he clarified.

Momentum Builds Across States

Should Governor Landry sign SB 181, Louisiana will follow Montana in enacting a formal ban this year. Similar measures are advancing in New York, Connecticut, and New Jersey.

While sweepstakes casinos may soon disappear from Louisiana, they remain active in many states. Real money online casinos also remain illegal in Louisiana and are permitted in just seven states nationwide.

Source:

“Louisiana sweepstakes casino ban ready to take flight”, sbcamericas.com, Jun 3, 2025