Just when governors are signing legislation against permitting online sweepstakes casinos to operate within their jurisdiction, an unexpected veto of a bill that was unanimously approved in both chambers of commerce follows in Louisiana.
Following the Lead
Senate Bill 181, which proposed a ban on online sweepstakes casinos, was heartily received in both chambers of the Louisiana state legislature. Senator Adam Bass’s bill was designed to prohibit sweepstakes casinos that appear to be online gaming sites and do so under the auspices of promotional contests.
Unanimous Approval and Harsh Penalties
Both chambers unanimously approved the bill, which called for penalties of up to $100,000 and five years’ imprisonment for violators. The bill is similar to legislation passed in Montana, Connecticut, and Nevada, with New York’s Senate recently approving and advancing the sweepstakes bill to the House.
Passage of the New York bill in the Senate comes hot on the heels of Attorney General Letitia James sending 26 cease and desist letters to online sweepstakes operators like Chumba, Fliff, and Global Poker, to name a few.
Senator Addabbo Commends Enforcement Actions
New York State Senator Joe Addabbo has been at the vanguard of gambling in the legislature and congratulated James on looking out for consumers and the legal operators that pay taxes to the state.
“These so-called sweepstakes casinos not only put individuals at risk of fraud and financial exploitation, but they also create dangerous pathways for gambling addiction, especially among minors,” Sen. Addabbo said in Friday’s release. “This is not about taking away anyone’s livelihood; it’s about protecting New Yorkers and working toward a safer, regulated online gaming environment for age-appropriate individuals.
“I commend Attorney General James and her office for their dedication towards protecting our residents and for recognizing the urgent risks posed by these illegal platforms.”
Gov Says Bill Is Not Necessary
Despite the best of intentions by the lawmakers, Governor Jeff Landry vetoed Senate Bill 181, saying it is unnecessary based on the amount of policing the state already does on behalf of keeping out offshore operators and sweepstakes casinos.
“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 went on to say in his veto message.
Industry Support for the Veto
The Social and Promotional Games Association, the sweepstakes industry trade mouthpiece, 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.”
Louisiana is not alone, as legislators in Florida, Mississippi, and Maryland have all decided not to outlaw online sweepstakes but are monitoring their policies so they do not interfere with regulated sites.
