Louisiana is one step closer to banning online sweepstakes casinos.
The Senate approved Senate Bill 181 last week in a sweeping 39-0 vote and advanced the proposal to the House. A sign-off in that chamber and a signature from Gov. Jeff Landry would potentially make Louisiana the first state to adopt legislation that would prohibit online sweepstakes casinos.
While certainly a win for Pelican State lawmakers, much work remains before a parade can march down Bourbon Street. Recent history proves that — and Louisiana legislators do not need to look far to see it.
Could Mississippi outcome signal Louisiana bill’s fate?
If signed into law — and assuming no other jurisdiction speeds things up — the bill would become the second in the nation to ban online sweepstakes casinos, after Montana passed its own bill in late April. It may seem as if Louisiana will earn that title, but we have seen one other state get this close only to fall apart at the last minute.
And it just so happened to occur next door.
Mississippi was the first to reach the doorstep of passage, but complications arose. Ultimately, the Senate bill died in conference. Regionally, this could portend what may occur in Louisiana. However, Mississippi’s situation was more unique.
There, House representatives attempted to sneak in language that would not only prohibit online sweepstakes gaming but also legalize online sports betting, which the Senate did not take kindly to and essentially killed the bill’s progress. There haven’t been any signs of that yet in Louisiana.
Louisiana bill has moved quickly
Just last week, Sen. Adam Bass presented Senate Bill 181 to the Senate Judiciary B Committee, saying that it would “combat the proliferation of illegal online casinos” — in this case, referring to online sweepstakes casinos — “which are ripping off Louisiana citizens.”
“Louisiana residents are conned into wagering an estimated $4.5 billion on the black market on websites each year,” Bass told the committee, “including so-called sweepstakes casinos, which claim to simply be a sweepstakes contest but are in fact unregulated and untaxed gambling.”
First introduced in early April, the bill has garnered “very unusual” support from the Louisiana casino industry, according to Howard Glaser, global head of government affairs and legislative counsel at Light & Wonder, in that the entire industry supports the bill’s passage.
Bass told the committee that online sweepstakes operators present unfair competition to Louisiana’s legal casinos.
From committee to Senate floor in 6 days
On top of that, Bass said, no doubt addressing concerns raised by the Social and Promotional Games Association (SPGA), the bill would not affect “legitimate promotions,” such as McDonald’s Monopoly or Marriott and Starbucks rewards.
“This bill narrowly defines sweepstakes casinos,” Bass added. “We know the gaming control board and attorney general have no interest in going after Starbucks or Marriott or McDonald’s and are solely focused on putting an end to sweepstakes casinos in this state.”
If that weren’t enough, Louisiana lawmakers certainly heard additional convincing testimony from Glaser, who emphasized that sweeps operators are using residents as ATMs to claim untaxed revenue.
Within six days, the bill reached the Senate floor and was overwhelmingly approved before being sent on to the House. Passage there and a governor’s signature would then allow this law to go into effect by Aug. 1.
