Louisiana Senator Seeks To Ban Sweepstakes Casinos

In Louisiana, a bill to outlaw sweepstakes casinos is awaiting a hearing in a Senate committee, as the state joins others in attempting to ban these platforms.

Senate Bill 181, introduced in early April by Sen. Adam Bass, R-Bossier City, has been referred to Senate Committee on Finance, according to the Louisiana State Legislature website.  A hearing date has not been posted. For a bill to become law, it must be approved by the full Senate and House of Representatives before going to Gov. Jeff Landry for his consideration. The legislative session is set to end June 12 at the Capitol in Baton Rouge.

The bill would stop “the unlawful conduct of illegal gambling websites and illegal gambling mobile applications,” Christopher Hebert, chairman of the Louisiana Gaming Control Board, told Gambling.com.

Sweepstakes Casinos Targeted Nationwide

Louisiana is among other states attempting to outlaw sweepstakes casinos, which, according to The New York Times, are operating in 47 states.

“Most states have not taken action, but since 2024 lawmakers in at least 10 states have introduced legislation to close the legal distinction that sweepstakes casinos use to operate,” the newspaper reported.

In essence, sweepstakes casino participants buy coins that have “no monetary value,” the Times noted. Players can use those coins to play digital slot machines and redeem sweepstakes cash for real money.

“By adding extra layers to the process, the sweepstakes casinos have, in practice, made it possible to gamble legally online in states that otherwise ban online gambling,” the newspaper reported. In Louisiana, online sport betting is legal but not online casino games such as slots.

Opponents note that sweepstakes casinos don't face the same state oversight and taxation requirements of the legal gaming industry.

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

The Social and Promotional Games Association issued a statement criticizing the bill in Louisiana to outlaw sweepstakes casinos.

“These games operate under strict 'no purchase necessary' rules, ensuring they remain free to play for everyone,” the association said. “In fact, the vast majority of users never spend a dime—they play for entertainment and the excitement of winning real prizes at no cost. Lumping these games in with gambling is not just legally inaccurate—it’s economically and culturally tone-deaf.”

iGaming Illegal in Louisiana

Nationwide, online casino gambling, known as iGaming, is legal in only seven states, from Michigan to Rhode Island. It is not legal in the South or West, according to the American Gaming Association.

Online casino gambling allows participants to use a cellphone or computer to play slots, craps and other traditional casinos games for real money.

In Louisiana, the Senate Committees on Judiciary B and Revenue and Fiscal Affairs met on Dec. 11, 2024, to study iGaming as required by Senate Resolution 149 of the 2024 Regular Session, Hebert said.

To date, the Louisiana Gaming Control Board is unaware of any bills this session attempting to legalize iGaming in the state, he said.

Though Louisiana does not allow iGaming, it is one of 38 states, plus Washington, D.C., where online sports betting is legal and live. Mobile sports betting also is legal in a 39th state, Missouri, but is not expected to go live there until sometime after Sept. 1. In Hawaii, legislators were unable late last week to achieve a compromise that would have made it the 40th state with legal mobile sports betting, according to Hawaii News Now.