Louisiana Governor Vetoes Anti-Sweepstakes Bill

Louisiana Gov. Jeff Landry this week vetoed a bill that would have banned sweepstakes casinos in the state, saying Senate Bill 181 “is a solution in search of a problem that is already being solved by our current system.”

The Louisiana legislative session ended Thursday, June 12, at the Capitol in Baton Rouge, with lawmakers sending the governor numerous bills to consider, including several related to gaming and sports.

In his veto message, Landry, pictured, said SB181 “attempts to criminalize certain secondary gambling activities on the internet that are already prohibited in Louisiana.” The veto message is addressed to Senate President Cameron Henry, R-Metairie, and to Yolanda Dixon, the Senate secretary.

The governor wrote that the Louisiana Gaming Control Board "is already taking active steps to combat illegal gambling in Louisiana, especially against illegal offshore wagering and illegal online sweepstakes companies operating in Louisiana.”

Landry, a Republican, concluded that SB181 is "not necessary." 

It was unclear on Friday whether there would be an effort to override the governor's veto. Landry has said he plans to call a special session to revive legislation that died this week.

As The New York Times has noted, sweepstakes casino participants buy coins with no monetary value and can use those coins to play digital slot machines. Players can redeem sweepstakes cash for real money.

“Sweepstakes casinos pay no gambling tax,” the Times reported, “thanks to the loophole they use to avoid being classified as gambling.”

Games Association Praises Governor

On Friday, June 13, the Social and Promotional Games Association commended Landry for vetoing SB181, saying the bill “would have dramatically restricted lawful digital entertainment platforms enjoyed by hundreds of thousands of Louisiana residents.”

“Governor Landry’s veto is a powerful affirmation that not all online games are gambling and that innovation should not be met with prohibition,” the SPGA said in a statement. “This legislation blurred critical legal distinctions and risked punishing legitimate businesses that comply with well-established sweepstakes laws and offer free-to-play experiences.”

The SPGA said these games do not qualify as gambling in Louisiana.

“Sweepstakes-based games operate within legal frameworks, are free to play, never require a purchase to win, and are used by Fortune 500 companies, such as Microsoft and Starbucks, to engage consumers,” the SPGA said. “With this veto, Louisiana joins a growing list of states, including Maryland, Mississippi, and Florida, that have rejected misguided efforts to ban legal sweepstakes entertainment.”