Is a wave of legal momentum moving against sweepstakes casino operators? That may well be the case if Louisiana Governor Jeff Landry signs SB 181 into law. If passed into law, SB 181 would set a firm legal definition of sweepstakes casinos, and ban them outright. Louisiana is the second state to pass an outright ban of the popular regulatory workaround that’s made Chumba Casino ads ubiquitous and very likely would not be the last.
Under the terms of SB 181, online games and promotions that use dual currency systems would no longer be allowed to operate in the state. With dual currency systems, which allow for free play and real money play, banned sweepstakes casino operators would be out of business in Louisiana. The bill also goes one step further by penalizing software providers and other auxiliary operators that support sweepstakes casinos. This move was made to blunt the spread of black market sweepstakes casinos.
State Senator Adam Bass, the bill’s primary sponsor, got straight to the point in explanation of why SB 181 needed to be passed saying, “So-called sweepstakes casinos claim to simply be a sweepstakes contest but are in fact unregulated and untaxed gambling.”
Not surprisingly, the Social and Promotional Games Association (SPGA) had a different opinion in comments provided to SBC Americas saying, “This bill carelessly conflates legal entertainment with illegal gambling, without evidence of harm. It also threatens Louisiana’s economy by stifling digital innovation and driving compliant companies out of the state. It’s a step backward for consumer choice, lawful innovation, and common sense.”
Currently, Montana is the only other state that has passed a bill banning sweepstakes casinos.