On Tuesday, the Louisiana House voted unanimously (99-0) on Bill SB 181, which seeks to ban sweepstakes games from the Bayou State. The bipartisan bill has now ed the Senate and House and is waiting for Senate concurrence, which is scheduled for later today.
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Bill SB 181 ed through the House with only three marginal amendments designed to clear up the language of the bill and not alter it. It is thus expected to Senate concurrence easily and become law.
Opponents Call Out The Law
The Social and Promotional Games Association (SPGA) has called out the bill, saying Senator Adam Bass's bill is a step backward and anti-common sense.
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"This bill carelessly conflates legal entertainment with illegal gambling, without evidence of harm. It also threatens Louisiana’s economy by stifling digital innovation and driving compliant companies out of the state. It’s a step backward for consumer choice, lawful innovation, and common sense." |
Responding to critics, Bass has stated that his bill is designed to address what he calls "illegal online casinos" that are unregulated and untaxed.
That last part is certainly fair, sweepstakes games fall outside of the scope of state gaming laws and don't pay taxes on gross gaming revenues (GGR) like regulated options. However, it's not as if sweepstakes operators are opposed to regulation.
The SPGA, for example, has routinely stated that it remains committed to working with lawmakers on balanced regulation. An SPGA spokesperson confirmed to Odds Shark that would welcome regulation, saying:
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"Social and sweepstakes casinos have been around a long time and are enjoyed by millions of US adults, including many thousands in Louisiana. If lawmakers want to change the law in their state to bring these operations under more state control or restrictions, our would welcome that. Whatever Senator Bass’s intentions may be, it is a fact that these sweeping laws will harm the LA economy and strangle digital innovation." -Social and Promotional Games Association Spokesperson |
Why rush to ban before engaging sweeps operators to bring them within the state's regulated sphere and tax GGR?
Bill SB 181 Has A Singular Target
The design for Bill SB 181 was always to go after online casino games offered by sweepstakes operators. Bass has stated Louisiana isn't about to end popular free-to-play sweepstakes games like those offered by McDonald's or Starbucks. His bill targeted online casinos only.
Bill SB 181 would ban any casino-style game, lottery games, or sports wagering that uses a dual-currency system of payment.
Second State To Ban Sweepstakes Games
Should Bill SB 181 become law, Louisiana would become the second state to ban sweepstakes games. In May, Montana became the first state to ban dual-currency games from its borders.
New York could become the third such state if Joseph Abbado Jr.'s Bill SB 5935 is made into law. Abbado Jr's bill has already moved to its third reading in New York's Senate and is poised to the upper chamber in the Empire State.
Connecticut is also stepping forward with legislation to ban sweepstakes games. Bill SB 1235 ed the Senate on May 22 with a unanimous 36-0 vote and has been ed onto the House for their consideration.
New Jersey is also moving forward with a bill that would ban sweepstakes games. Last week, the Senate State Government, Wagering, Tourism, & Historic Preservation Committee approved SB 4282. The bill has now been referred to the powerful Senate Budget and Appropriations Committee.
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