Despite a sweepstakes ban being approved in the legislature but vetoed by the governor, the Louisiana Attorney General has declared online sweepstakes illegal in the Bayou State.
Gov Not Having It
Senator Adam Bass’s Senate Bill 181, banning online sweepstakes, was heartily approved by both chambers of the state legislature before it advanced to the desk of Governor Jeff Landry, who promptly vetoed the measure. The governor stated there were already mechanisms in place to ward off online sweepstakes from operating in Louisiana and considered this window dressing he could do without.
“The [Louisiana Gaming Control] Board is already taking active steps to combat illegal gambling in Louisiana, especially against illegal offshore wagering and illegal online sweepstakes companies operating in Louisiana,” Landry said in his veto message.
“This bill is a solution in search of a problem that is already being solved by our current system, and 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,” Landry added.
The Social and Promotional Games Association, the sweepstakes industry trade lobbying wing, lauded Landry’s decision, saying, “Governor Landry’s veto is a powerful affirmation that not all online games are gambling and that innovation should not be met with prohibition. This legislation blurred critical legal distinctions and risked punishing legitimate businesses that comply with well-established sweepstakes laws and offer free-to-play experiences.”
The Statute Says
It was a bit of a head-scratching moment, as the bill had so much momentum heading into the governor’s office, only to get derailed at the 11th hour. However, the saga does not end there, as Attorney General Liz Murrill has written her opinion and says that online sweepstakes are illegal, and there are currently laws in place to ban them immediately.
It was Senator Rick Edmonds who initially asked for the AG’s opinion in a letter to her office dated June 18th. Edmonds’ questions were as follows: “Does Louisiana law permit online businesses to operate casino-style gaming activities? Specifically, is it lawful for such businesses to operate gaming platforms that purport to be sweepstakes or social gaming?”
It didn’t take long for Attorney General Murrill to address the questions and answer them in no uncertain terms. She cited the state constitution and several state laws.
“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. These activities constitute illegal gambling and illegal gambling by computer under multiple provisions, including but not limited to La. R.S. 14:90, La. R.S. 14:90.3, and La. R.S. 51:1721 et seq.”
Murrill noted state law prohibits, “Internet gaming or iGaming or the offering of casino-style games online is not a legal form of gaming in Louisiana, as no law authorizing it has been passed nor any election for such has been conducted.”
Although several states have talked about bills banning online sweepstakes, Louisiana has become only the fourth state to enact a ban, joining Michigan, Montana, and Washington.
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