Louisiana lawmakers are again pushing forward legislation that would explicitly ban sweepstakes casinos in the state. The move comes despite Governor Jeff Landry vetoing a similar bill last year, citing existing regulations that already prohibit the platforms.
The Louisiana House passed HB883 last week in a 99-0 vote. The bill has now been referred to the Senate’s Judiciary B Committee.
It contains identical text to a bill that passed both chambers last year, defining illegal gambling as “any game, 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, cash, or cash equivalents, or any chance to win any prize or award, cash, or cash equivalents, and simulates any form of gambling constitutes gambling by computer.”
It says that the present law currently prohibits “gambling by computer and provides penalties for violations.”
But adds that the “Proposed law adds certain actions which constitute gambling by computer, including the offering of dual-currency games that simulate any form of gambling.”
Problem Already Being Solved
Gov. Landry, however, already believes the current law is sufficient for the state to prosecute sweepstakes casinos, which use dual-currency models.
When vetoing the legislation last year, Landry said, “This bill is a solution in search of a problem that is already being solved by our current system.”
“This bill attempts to criminalize certain secondary gambling activities on the internet that are already prohibited in Louisiana,” he added.
“Our current Louisiana Gaming Control Board has the regulatory authority, control, and jurisdiction over all aspects of gaming activities and operations pursuant to the Louisiana Gaming Control Law.”
He also warned that “some of the language in this bill is overly broad and could be interpreted in an adverse manner which may harm or impede our current enforcement actions taken against these bad actors.“
This year’s bill, however, contains language that is highly similar.
State Ramps Up Enforcement Action
Justifying Landry’s claim that Louisiana’s gambling regulators already have sufficient power to target illegal gambling operators, the Gaming Control Board sent cease-and-desist letters to more than 40 offshore and sweepstakes casinos shortly after he vetoed the bill. At least 60 operators have now exited the state.
Louisiana Attorney General Liz Murrill has also declared sweepstakes casinos illegal. She stated, “Following a review of applicable Louisiana statutes and legal precedent, it is the opinion of this office that online businesses offering casino-style games – purporting to be sweepstakes or social gaming platforms – are operating in violation of Louisiana law.”
The latest bill gives the Attorney General increased powers, but Murrill already believes she has the authority to shut down operators. She also warned companies that they are “still subject to Federal and State tax laws and liabilities.”
The Louisiana Department of Revenue filed a lawsuit against VGW and WOW Vegas, alleging the companies owe $44 million in unpaid taxes.
Other States Banning Sweepstakes
In addition to Louisiana, other states continue to propose legislation banning sweepstakes casinos. Both Maine and Indiana have passed bills prohibiting multi-currency gambling this year.
Last week, lawmakers in Washington, D.C., also introduced legislation that would legalize iGaming and prohibit sweepstakes casinos.
It is unclear whether Gov. Landry will again veto the bill in Louisiana if it is approved in the Senate. Given his previous statements, it seems likely he would again rule that the legislation is unnecessary and may only complicate matters. The state legislative session ends on June 1.
