Louisiana lawmakers advanced a bill this week that would classify sweepstakes casinos as “racketeering activity.”
The Louisiana House passed House Bill 53, 86-11, on Monday, which classifies certain gambling activity as racketeering. Rep. Bryan Fontenot pre-filed the bill in January, and it passed the Committee on Administration of Criminal Justice last month.
Louisiana regulators sent cease-and-desist letters to unregulated gaming operators last year, including sweepstakes casinos. Those letters came after Gov. Jeff Landry vetoed a sweepstakes prohibition bill.
HB 53 now heads to the Senate, where it was referred to the Committee on Judiciary. The Louisiana Legislature adjourns June 1.
What HB 53 does to sweepstakes casinos
Along with “gambling by electronic sweepstake device,” HB 53 also adds a variety of other terms to potential racketeering charges:
- Gambling
- Gambling in public
- Gambling by computer
- Gambling or wagering at cockfights
- Unlawful wager; prohibited player
- Bribery of sports participants
According to Louisiana’s Revised Statutes, those could brings charges of “not more than $1 million, or imprisoned at hard labor for not more than 50 years.” Additionally, for racketeering charges, prosecutors must prove at least two instances of an activity for conviction.
Louisiana sweepstakes casinos action
Last year, the Louisiana Legislature passed Senate Bill 181 to prohibit sweepstakes casinos in the Pelican State. Landry, however, vetoed the bill and said state regulators already had the power to enforce state gaming laws.
The Louisiana Gaming Control Board then sent more than 40 cease-and-desist letters to unregulated operators, including sweepstakes operators. The LGCB, Attorney General and Landry all appear to believe games with sweeps already qualify as online gambling, which is illegal in Louisiana. Online sports betting is legal in most parishes.
“Louisiana will not tolerate illegal operators who put our citizens at risk and undermine the fairness and integrity of our gaming industry,” LGCB Chairman Christopher Hebert said at the time. “We will continue to use every enforcement tool available to protect the public and uphold the law.”
The Louisiana Department of Revenue has also sued sweepstakes giant VGW and MW Services Limited for an alleged $44 million unpaid sales taxes.
Another Louisiana sweepstakes bill
Along with the racketeering bill, Rep. Laurie Schlegel introduced House Bill 883, which would expand illegal online gambling to explicitly include “dual-currency” sweepstakes casinos.
The bill also targets suppliers to sweepstakes casinos, like payment processors.
Lawmakers referred the bill to the Committee on Administration of Criminal Justice.
Multiple other states have introduced sweepstakes prohibition bills this year, including Indiana, where Gov. Mike Braun signed the legislation. The Maine Legislature passed its ban bill last week, while bills in Maryland and Minnesota are also moving through the legislature.
