Doug Bonjour is a veteran sportswriter with more than a decade of experience, including in the realm of sports betting. He’s written for the New York Times, Associated Press, CBS Sports and Hearst Connecticut Media...
Read Full BioLouisiana has become the latest state to consider legislation that would shut the door on sweepstakes gambling.
Republican Senator Adam Bass has introduced Senate Bill 181, which is aimed at banning certain social casino games by classifying them as illegal gambling.
The proposed Louisiana legislation defines illegal sweepstakes gaming as: “any games, contest, or promotion that is available on the internet or accessible on a mobile phone, computer terminal, or similar access device that utilizes a dual-currency system of payment allowing the player to exchange the currency for any prize or award or cash or cash equivalents … and simulates any form of gambling.”
This includes casino-style gaming (slot machines, video poker, table games such as blackjack and roulette), lottery games (keno and poker), and sports betting.
It targets not only operators and promoters of these games but also geolocation providers and gaming manufacturers. The bill calls for harsh penalties, ranging from fines between $10,000 and $100,000 to prison sentences of up to five years.
Sweepstakes Gambling Focus in Several States
Close to a dozen states have already filed bills to ban sweepstakes gambling. For instance, New York’s Senate Racing, Gaming, and Wagering Committee unanimously passed SB 5935 last month. The bill, introduced by Sen. Joseph Addabbo, specifically targets games simulating casino-style entertainment, including poker, slots, and sports betting.
“These products evade consumer protection, responsible gaming, and anti-money laundering requirements to which gambling in New York is otherwise subject,” the bill reads. “These products and operations are untaxed and unregulated.
“They present unfair competition to the state’s legal, highly regulated and economically important casinos.”
Following mounting pressure in the Empire State, several sweepstakes operators, including Hello Millions, SportsMillions, PlayFame, SpinBlitz, and Rolling Riches, have announced they will cease business in New York in April. Further, High 5 Casino stopped accepting new registrations and transactions late last month.
Sen Addabbo has long been a proponent of legalized iGaming in the state, but significant roadblocks remain in the form of the vocal brick-and-mortar casino lobby and public health advocates. He has previously argued that legalizing online casinos would help reduce the risk of residents using unregulated products such as sweepstakes casinos and offshore sites.
Maryland is weighing similar measures after unanimously passing legislation in the state Senate.
Connecticut, Florida, Mississippi, and New Jersey lawmakers have also filed bills seeking to tighten regulations against sweepstakes gambling.
Opponents Call Proposal ‘Misguided’
SB 181 has drawn fierce opposition from the Social and Promotional Games Association (SPGA), which said that it “recklessly misclassifies” sweepstakes gambling as illegal.
The SPGA has expressed concerns that SB181’s “overly broad definitions” could criminalize customer engagement strategies from Marriott, United, Delta, and Hilton. It argues that “the vast majority of users never spend a dime” and dubs the Louisiana bill “economically and culturally tone-deaf.”
The strongly worded statement concludes: “SPGA calls on Lousiana lawmakers to reject SB181 before it inflicts lasting damage on the state’s economy and reputation as a hub for innovation.”
