Louisiana targets sweepstakes gambling with new legislative crackdown

Louisiana is jumping on the bandwagon with almost a dozen other states trying to crack down on sweepstakes gambling. The sites allow people to play using free coins, but they can also buy more coins with real money and then trade those in for cash or prizes.

A new bill filed on Friday (Apr. 4) by Senator Adam Bass is attempting to put an end to online sweepstakes in Louisiana. SB 181 would ban running and promoting these sites in the state. It targets what it calls “gambling by computer,” which includes any online games, contests, or promos that use a dual-currency system, such as free and paid coins, and gives players a shot at winning prizes, cash, or anything with real-world value.

The bill would also ban any form of lottery-like games and even sports betting. It will target anyone connected to the operation, such as geolocation providers, gaming manufacturers and suppliers, platform providers, promoters, and even media affiliates that help promote or support these illegal online gambling sites.

Under the proposed law, enforcement would fall to the Louisiana Gaming Control Board (LGCB) and the Louisiana State Police (LSP). They would be responsible for cracking down on illegal sweepstakes gambling by taking civil action to stop the activity, including shutting down illegal gambling websites and mobile apps and hitting violators with civil penalties.

It also keeps the current penalty structure in place but raises the stakes significantly. Instead of a maximum fine of $20,000, the new version would set the fine at a minimum of $10,000 and up to $100,000 per violation.

‘Chilling message’ to investors

The Social and Promotional Games Association (SPGA) said it “vehemently opposes” the bill, which “recklessly misclassifies legitimate sweepstakes as illegal gambling.”

Louisiana’s SB181 Could Criminalize Travel Loyalty Programs, Turn State into No-Go Zone for Tech Investment, SPGA Warns pic.twitter.com/Rr9RdilBYj

— theSPGA (@theSPGA) April 7, 2025

In a statement posted on X, the body said: “This misguided legislation endangers lawful businesses and sends a chilling message to investors, jeopardizing Louisiana’s burgeoning tech sector.

“For decades, companies from fast-food chains to app developers have utilized sweepstakes as legal promotional tools. SB181’s failure to distinguish between these lawful activities and gambling not only threatens these businesses but also undermines established legal frameworks that support innovation and economic growth.”

Louisiana joins other states fighting against sweepstakes

Other states are taking a similarly tough stance, casting a wide net that targets not just the operators of these sweepstakes sites but anyone involved. Maryland’s Senate unanimously passed SB 860 last month. The bill bans running or promoting online sweepstakes games, as well as goes after media affiliates, payment processors, and geolocation services connected to these sites.

States like New York see sweepstakes gambling as a direct threat to their legal, licensed gambling operations, the ones that actually pay taxes and follow state regulations. Senator Joseph Addabbo Jr.’s SB5935 bill is currently making its way through the New York legislature. The push to crack down is partly about protecting legitimate businesses and the revenue they bring in.

A high-profile bill in Mississippi made it through both chambers, but ultimately fell apart in concurrence after lawmakers added language related to legal sports betting. The addition ended up being a dealbreaker, stopping the bill from moving forward.

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