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Lawmaker pre-files bill to ban online sweepstakes casinos in Louisiana
Louisiana legislators will consider a bill that would formally prohibit dual-currency online sweepstakes casinos in the state.
Just as the state's legislative session was about to begin, Louisiana Rep. Laurie Schlegel pre-filed House Bill 883 to update the Pelican State's definition of illegal gambling to include a dual-currency model commonly used by online sweepstakes casinos. As a result, should the bill pass, Louisiana would join the growing list of states to formally ban sweepstakes operators.
Breaking down what Louisiana bill would crack down on
Some nine months after issuing cease-and-desist orders to many online sweepstakes casino operators, Schlegel's bill never actually uses the term "sweepstakes" or references sweeps casinos. Rather, HB883 focuses on platforms that utilize dual-currency payment systems – which are the central component of online sweeps casinos.
The proposal provides a new definition to illegal gambling in Louisiana, which does not have legal real money online casino apps. The bill would prohibit any game, contest or promotion that can be played on a mobile device or computer and uses a dual-currency system that users can exchange for prizes, cash or cash equivalents.Â
Typically, online sweepstakes casinos allow players to purchase Gold Coins, which are not redeemable for anything of real-world value. Sweeps Coins, though, can be exchanged for money. Though they are not available for purchase, they can be earned in other ways.
In addition, the bill bans any game that simulates any form of casino games online.
Lawmakers take another run at banning online sweepstakes casinos in Louisiana
Last summer, the state legislature passed a bill to ban online sweeps casinos, though Gov. Jeff Landry ultimately vetoed the proposal. Landry commented that the bill represented a solution "in search of a problem that is already being solved by our current system.
Interestingly, it was only a few days later that the Louisiana Gaming Control Board sent cease-and-desist letters to over 40 unlicensed sweepstakes gambling sites. Most of those operators have since ended operations in Louisiana or at least closed up shop on the Sweeps Coins option.
The pre-filed bill comes on the heels of another piece of legislation, House Bill 53, which bolsters the state's gambling-related offenses by adding, among other terms, "gambling by electronic sweepstakes device" under the Louisiana racketeering law.
