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Louisiana lawmakers have taken a major step toward becoming the first state to take specific legislative action against online sweepstakes casino operators.
The state’s Senate voted unanimously to approve Senate Bill 181, which would prohibit the dual-currency model utilized by many prominent sweepstakes operators, deeming it illegal gambling rather than a legal sweepstakes operation.
The definition would apply to casino-style sweepstakes gaming, lottery games and sports wagering, and states that any violation of the law includes criminal sanctions and is deemed a deceptive and unfair trade practice, subjecting any operator to further violations.
“Senate Bill 181 is legislation to combat the proliferation of illegal online casinos which are ripping off Louisiana citizens,” said Adam Bass, the bill’s sponsor. “These online casinos, which are often based offshore, evade consumer protections, responsible gaming and anti-money laundering requirements to which gambling in Louisiana would otherwise be subject.
“This legislation would force these illegal operators, who do not verify age, out of our state, and provide a powerful deterrent to offshore and domestic illegal online gaming operators from entering the state.”
The Social and Promotional Gaming Association (SPGA), a trade group that represents sweepstakes operators, has been advocating against the bill, arguing that its overly broad definition could criminalize non-gaming sweepstakes offerings such as hotel loyalty programs and other rewards programs.
“For decades, companies — from fast-food chains to app developers — have utilized sweepstakes as legal promotional tools,” the SPGA said in a statement. “SB181’s failure to distinguish between these lawful activities and gambling not only threatens these businesses but also undermines established legal frameworks that support innovation and economic growth.”
Bass rejected that assertion during a committee hearing on the bill last week.
“Regardless of what you’ve heard, this bill does not affect legitimate promotions such as McDonald's Monopoly or Starbucks, or Marriott rewards,” he said. “This bill narrowly defines sweepstakes casinos.
“We know the [Louisiana] Gaming Control Board and the 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.”
Although more than a half-dozen states have seen bills introduced with similar intent to restrict or prohibit sweepstakes casinos, no state has been able to cross the legislative finish line with such an effort so far in 2025.
A bill in Mississippi cleared both chambers of the state legislature, but failed to clear a conference committee of senators and representatives. A bill in Maryland received similar unanimous approval in the Senate, but did not receive a vote in the House.
In other states, including Connecticut, Florida and New York, anti-sweepstakes bills have been approved at the committee stage but have yet to receive a floor vote.
Meanwhile, legislation in Montana that prohibits "online casinos, by whatever name known" that "allow consumers to place a bet or wager using any form of currency and makes payouts of any form of currency" has also cleared both chambers of the state legislature and is pending a signature from Governor Greg Gianforte to become law.
Louisiana’s legislative session runs through June 12 and sweepstakes is not the only gaming-related issue in play.
Lawmakers are also considering another bill that reflects a key policy throughout the U.S. in the form of House Bill 639. That bill would bring the state’s sports-betting tax to the same rate as the state’s video poker devices at truck stops, increasing the tax from 15 percent to 32.5 percent.
A House committee advanced the bill to the House floor on Monday (April 28), with the increased revenue to go to a proposed fund to benefit Division 1 athletes at Louisiana public universities.
