Louisiana Attorney General Liz Murrill has published an opinion on the legality of casino-style, sweepstakes-based online games in the state. Murill has declared such games in violation of state law.
The new opinion does not bear the weight of law but could signal enforcement actions from Murrill’s office in the future. At minimum, Murrill’s opinion reinforces steps that Louisiana gambling regulators have taken to curtail what they view as unlicensed gambling.
Murill shares take on sweepstakes games
Murrill issued her opinion on July 2, and the language leaves no room for ambiguity. Murill emphasizes that “online casino games like slots, blackjack, roulette, and poker for real money remain illegal.”
Murill continues to state that “some of these platforms, including so-called ‘sweepstakes’ or ‘social casino’ sites, may offer real-money payouts, use dual-currency or coin-based systems, or offer material prizes such as gift cards, all under the false appearance of legality and trying to compare themselves with legitimate sweepstakes, like that of McDonald’s or Starbucks. Our laws and the veto of SB181 do not legalize these purported ‘sweepstakes’ or ‘social gaming’ websites without a vote of the people or without licensing and suitability investigations.”
Murrill concludes by reinforcing that she wants “to make it unequivocally clear that online casino, bingo, keno, iGaming, and alleged sweepstakes or social gaming sites offering such games are operating illegally in Louisiana.” This release follows attempts by gambling regulators to stress those points of view.
Gambling regulators take initiative against sweepstakes casinos
On June 17, the Louisiana Gaming Control Board (LGCB) sent cease-and-desist letters to 42 recipients that the LGCB associates with websites offering online games it considers illegal in the state. The recipients included operators of sweepstakes gaming sites like Chumba Casino, Fliff, and Funzpoints.
Some of the recipients have begun deciding on whether to comply with the order. For example, Chanced and Punt have already informed players that they will no longer be able to access the games in Louisiana.
WOW Vegas has also given notice to consumers of a similar update on its platform. While other websites have not made announcements, that does not guarantee they are still offering their games in Louisiana or won’t change their policies soon. There are few alternatives for sweepstakes operators.
Alternatives to pulling up stakes in Louisiana
Alternatives to complying with the LGCB letters include court actions due to the nature of attorney general opinions. Targets of prosecution in line with the attorney general’s opinion can challenge the legitimacy of that opinion, as it does not carry the same weight as law but is rather an interpretation of existing statutes.
Such actions are unlikely, however, because of the cost of litigation and the high standard for convincing a court to overrule the state’s attorney general. The attorney general could prosecute recipients of the cease-and-desist letters who don’t comply with violations of Louisiana’s gambling laws.
With the cease-and-desist letters and the attorney general’s opinion in place, Louisiana may be the latest US state to become off-limits for sweepstakes online casino games.
