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Louisiana’s Gov. Jeff Landry recently vetoed a bill that would have impacted the ability for sweepstakes operations to continue in the state. Landry stated that the potential issue of illegal gaming in the state is already being resolved by the Louisiana Gaming Control Board, and the bill’s broad language could have had negative repercussions on their enforcement.
Despite Gov. Landry’s decision, the case is not closed, and a two-thirds majority could see the Louisiana State Legislature override the veto and bring it back to be voted on.
The state currently prohibits any form of online casino gambling, but online sports betting is permitted. Sweepstakes sites often attempt to bypass existing laws by offering consumers the opportunity to play casino games using sweepstakes coins that can then be exchanged for prizes or cash.
Online gambling expert Andjelija Blagojevic explains that offshore online casinos can also provide Louisiana with a secure way of online betting. Blagojevic’s Lucky Red online casino review shows that deposit match bonuses of up to 400% and a great selection of games are attracting new customers all the time.
Despite no bills to legalize online casino betting in the state, land-based casino expansion and the success of online sports betting could help pave the way for legislative change in the future.
How SB181 Would Have Affected Sweepstakes Casinos
Louisiana Senate Bill 181 (SB181) sought to prohibit online games, contests, and promotions operating dual currency systems and to ban sweepstakes platforms from being able to offer their customers lottery and casino-style games.
At present, consumers are not allowed to bet money on casino-type games online, but sweepstakes have offered a way around this. Sweepstakes coins act as a secondary currency and can be earned by completing various tasks like sharing content and signing up with affiliates. Some sites also offer players the chance to purchase sweepstakes coins directly.
Coins can then be used like traditional currency on the site’s games, with players able to win more by staking them on casino-style games. Players are then able to exchange their sweepstakes coins for cash or prizes.
Concerns had also been raised in other sectors, with SB181 having the potential to impact prize draws and loyalty schemes used by airlines and hotels. While these industries were not explicitly named in the bill, the language used could result in the misclassification of these promotional tools.
Louisiana’s Current Gambling Industry
Despite not having an online casino industry, Louisiana has 24 active land casinos that have an economic impact of over $7.5 billion and support more than 44,000 jobs. Casinos in the state generate upwards of $1.25 billion in taxes and have a GGR (gross gaming revenue) of $2.76 billion.
19 of the 24 casinos in Louisiana are commercial properties, with the remaining 5 under tribal control. The sports betting industry has 16 licensed retail outlets and 7 online operators. Of the $3.7 billion handle generated by sports betting in Louisiana, the industry has a GGR of $467.4 million and $65.1 million in taxes.
Commercial gaming tax revenue allocation is determined by the state legislature, with funds going towards state capital improvements. retirement systems, and the State General Fund. The Indian Gaming Regulatory Act (IGRA) requires funds from tribal casinos to go towards tribal government programs and operations, the general welfare of tribe members, the promotion of economic development, charitable organizations, and local government operations and agencies.
As more states contemplate online casino legislation, Louisiana currently has no proposals that would allow operators in the state.
If you or anyone you know has a gambling problem, call 1-800-GAMBLER.
