Online Sweepstakes Still Legal After Louisiana Governor Landry Veto

Louisiana will not move forward with a ban on online sweepstakes-style gaming after Governor Jeff Landry rejected Senate Bill 181. The proposal aimed to target platforms that use dual currency and resemble online casinos, with penalties of up to $100,000 in fines and five years in prison for violators. Governor Landry, however, called the bill “not necessary” and pointed to existing laws and enforcement tools already in place.

Good to know

• The veto blocks new penalties aimed at sweepstakes operators, including jail time and steep fines.
• Offshore sites like Bovada are already being targeted under current Louisiana laws.
• States like Connecticut and Montana have already moved ahead with their own bans.

Instead of adding new restrictions, Governor Landry argued that Louisiana’s regulatory bodies already have what they need to address illegal online gaming. He explained that the Louisiana Gaming Control Board holds full oversight over gaming activity in the state and is capable of taking action when needed.

In a letter to the Senate, Landry said that the bill could interfere with ongoing enforcement. He cited the recent cease-and-desist letter sent to Bovada as evidence of progress in dealing with offshore operators. “The Board’s firm stance against such operations is aimed at protecting Louisiana residents from unregulated gambling activities that violate state laws,” he wrote.

Landry added that the Louisiana Attorney General’s Office, the State Police Gaming Division, and the Board are working together and will continue targeting illegal online sweepstakes operators that attempt to work around existing laws.

What Senate Bill 181 Proposed

Senator Adam Bass introduced the bill in April to go after sweepstakes sites that operate like online casinos. These platforms often feature promotional contests with dual currency systems—one for virtual play and another that can be exchanged for real cash or prizes.

The bill passed with unanimous support. The Senate approved it 39-0 on April 29, and the House voted 38-0 on June 3. It landed on the governor’s desk on June 8, but he chose not to sign it into law.

If approved, the bill would have introduced harsh penalties, including up to five years of prison time and fines reaching $100,000.

Louisiana already allows legal sports betting, but there is no licensed framework for online casinos. SB 181 attempted to fill that gap by cracking down on sweepstakes-style games that mimic casino operations.

Other States Are Taking a Harder Line

While Louisiana held back, other states pushed ahead with bans. Connecticut’s governor just signed legislation to outlaw online sweepstakes gaming. Montana has gone even further by banning social casinos and sportsbooks altogether. The New York Senate passed a similar bill, which now waits for Assembly action.

States like Florida, Mississippi, and Maryland also considered bans earlier this year but ultimately decided not to move forward.

The Social and Promotional Games Association (SPGA) praised Louisiana’s decision to veto the bill. “Governor Landry’s veto is a powerful affirmation that not all online games are gambling and that innovation should not be met with prohibition,” the group said in a public statement. They warned that SB 181 could have hurt legitimate businesses offering legal, free-to-play games.

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