The pushback against sweepstakes casinos is taking center stage once again.
Senate Bill 181, which recently cleared both the Louisiana House and Senate unanimously, is one step away from becoming law. All it will take is a signature from Gov. Jeff Landry, and it won't take long to find out if he approves. The 2025 legislative session in Louisiana is set to end on June 12.
The Pelican State is on the verge of becoming the third state in the U.S. to ban dual-currency sweepstakes casinos, joining Montana and potentially Nevada. Montana Gov. Greg Gianforte signed the bill into law, which will go into effect on Oct. 1, 2025.
Idaho and Washington have specific prohibitions against them.
Understanding Senate Bill 181
Senate Bill 181 aims to clamp down on unregulated and untaxed gambling operations, which many argue exploit consumers.
The bill expands the definition of “gambling by computer” to encompass dual-currency sweepstakes casinos. Should the bill become law, offenses could result in hefty fines of up to $100,000 and prison sentences of up to five years.
The Bigger Picture
This legislative push comes amid broader discussions about online gambling in Louisiana.
While many states have attempted bans this year, few have succeeded. Efforts in Arkansas, Florida, Maryland, and Mississippi failed to gain full legislative approval. However, momentum is building in some regions.
The Connecticut Senate approved a similar bill and is waiting for the House's decision. New Jersey and New York are also actively considering restrictions as their legislative sessions come to an end.
Industry Response
Not everyone is on board with these changes.
The Social and Promotional Games Association (SPGA) voiced disapproval, criticizing Louisiana lawmakers for passing the bill.
They argue that legal sweepstakes platforms adhere to strict guidelines, which are used by major companies like Microsoft and Starbucks to engage consumers. The SPGA claims the bill confuses legal gaming with illegal gambling without concrete evidence of harm, potentially hindering digital innovation and consumer choice in Louisiana.
As of this month, the SPGA has a counterpart. This was after major sweepstakes operator VGW formed its own group, the Social Gaming Leadership Alliance. The SGLA is a group of industry leaders focused on supporting the online social casino games industry.
The SGLA's goal is to help people better understand this booming industry, especially free-to-play, casino-style games that use sweepstakes promotions. Millions of adults enjoy these games because they offer creative and fun entertainment.
The SGLA brings together top game operators, service providers, and players who all appreciate this well-established industry. They value not only the entertainment these games provide but also the economic benefits they bring to businesses, investors, and players. The Alliance focuses on responsible innovation, protecting players, and maintaining industry integrity. They plan to work with lawmakers, regulators, the media, the public, and other groups to promote their cause.
Sweepstakes Casinos Still Available in Other States
Louisiana's final decision rests with Gov. Jeff Landry.
Should he sign the bill, dual-currency sweepstakes casinos in the state will face significant operational barriers. This decision could mark a turning point, influencing how other states approach similar legislation. As the conversation continues, stakeholders across the gaming industry and legislative bodies will watch closely to see how this story unfolds.
But remember, real money online casinos are also off-limits in Louisiana. They are legal in only seven states, located from Michigan to Rhode Island. This means that, for now, you can't play real money online casinos in Louisiana.
Although Louisiana is close to banning online sweepstakes casinos, they are still available to play in many other states. These platforms let you play games for fun, and you can also buy in-game currency, like gold coins, to win prizes.
