Louisiana approves bill banning online sweepstakes platforms
The state of Louisiana is about to make history in the United States by approving a law that bans the operation of online sweepstakes casinos. Recently, the state Senate voted unanimously in favour of Bill 181, which aims to end the so-called “dual currency model” used by these virtual casinos. This model, very popular on offshore sites, allows players to buy virtual coins, play, and then exchange these coins for cash prizes. For Louisiana legislators, this is nothing more than a disguised form of illegal gambling.
Why Louisiana is cracking down on sweepstakes casinos
, responsible for presenting the proposal, said that these online casinos are “deceiving Louisiana citizens” by operating without following the rules that physical casinos must comply with. According to him, these sites often do not care about basic practices such as verifying players’ ages or protecting consumers. Moreover, as they are based outside the United States, they evade American laws on money laundering and responsible gambling, and this is one of the challenges that the state of Nevada is also facing.
“The idea is to remove these illegal operators from our state and prevent others from trying to enter,” said Bass. He also assured that the law will not affect promotions by well-known companies, such as the famous McDonald’s Monopoly or the rewards programmes of Starbucks and the Marriott hotel chain. According to him, the focus is only on “sweepstakes casinos” that use the guise of promotions to enable online betting with real money.
Pushback and concerns from the industry
In contrast, the Social and Promotional Gaming Association (SPGA), which represents companies that work with sweepstakes and promotions, is concerned about the effects of the new law. The association fears that the definition of “sweepstakes casino” is too broad and may end up affecting other types of legitimate promotions. In a statement, the group said that “for decades, companies like fast-food chains and app developers have used sweepstakes as a legal marketing tool” and that the new law could harm legitimate businesses and limit innovation.
Louisiana’s place in a growing national debate
This debate is not happening only in Louisiana. Other American states have also tried to pass laws to limit or prohibit online sweepstakes casinos, but so far, none have managed to complete the legislative process. In Mississippi, for example, a similar proposal was approved by both chambers but did not pass the final stage, a meeting between House and Senate representatives. In Maryland, the project was also approved by the Senate but did not receive the final House vote.
Meanwhile, in the state of Montana, a similar law has already passed all stages of the Legislature and now only awaits the governor’s signature to officially become law.
In addition to the sweepstakes casino issue, Louisiana is also discussing other essential changes in the gaming sector. One example is Bill 639, which aims to increase the tax charged on sports betting in the state. Currently, sports betting pays a rate of 15%, but the new proposal wants to raise this number to 32.5%, the same tax charged on video poker machines at truck stops.
The idea is to use the extra revenue collected to create a fund that would help Division 1 university athletes at Louisiana’s public universities. The proposal has already passed a committee and will now be voted on in the House.
Concerns rise over social impact and industry viability
This tax increase, however, divides opinions. Some industry experts fear that the higher rate may discourage legal sports betting operators, who might decide to leave Louisiana’s market. Brendan Bussmann, from the consultancy firm B Global Advisors, said that the measure could end up favouring illegal sites, as bettors might migrate to unregulated platforms where taxes do not exist and profit margins are higher.
Even so, the numbers show that the betting market in Louisiana is growing. Just in February of this year, the total volume of sports bets in the state was over 381 million dollars, an increase of 39% compared to the previous year. Tax revenue also grew, reaching 7 million dollars for the month, almost double the same period last year.
However, not everyone sees this growth as entirely positive. Social organisations, such as the Louisiana Family Forum, warn about the risks of increased problems such as gambling addiction, domestic violence, and financial difficulties for families affected by excessive betting. They advocate that part of the revenue be allocated to prevention and treatment programmes for addiction.
With so many discussions happening at the same time, Louisiana stands between two possibilities: on the one hand, the opportunity to increase revenue and expand the gaming industry; on the other, the challenge of ensuring that this happens without harming the most vulnerable citizens. The next decisions of the Legislative Assembly will define the direction of the betting and online gaming sector in the state and may serve as an example for the rest of the United States.
This article was first published in Portuguese on 2 May 2025.
