Going Against Governor’s Veto
In a decisive move, Louisiana Attorney General Liz Murrill has issued a formal opinion stating that online sweepstakes casinos operating with dual-currency systems are in violation of state gambling laws. This announcement follows Governor Jeff Landry’s recent veto of Senate Bill 181, which aimed to ban such platforms. Despite the veto, Murrill emphasized that existing laws already prohibit these operations and that enforcement actions are imminent.
Dual-Currency Systems Under Scrutiny
Sweepstakes casinos often utilize a dual-currency model, offering “Gold Coins” for free play and “Sweep Coins” that can be redeemed for cash prizes. Murrill’s opinion highlights that this structure effectively constitutes illegal gambling, as it allows users to purchase virtual currency and win real-world rewards, circumventing regulatory oversight.
Legal Implications and Enforcement Actions
The Attorney General’s office, in coordination with the Louisiana Gaming Control Board and the Louisiana State Police, is prepared to take both civil and criminal actions against non-compliant operators. Penalties could include up to five years in prison and fines up to $20,000. Additionally, asset seizures and cease-and-desist orders are on the table for those who continue to operate illegally within the state.
Lack of Consumer Protections
Murrill didn’t just call these sites illegal, she pointed out how they’re skipping the basics. No age checks, no location verification, no real ID screening. Without those protections, players are flying blind. And when there’s money on the line, that’s not just risky, it’s reckless.
Industry Response and Pushback
The Social Gaming Leadership Alliance (SGLA) isn’t buying it. The group says sweepstakes casinos are just modern versions of promotional games that brands have used for decades. According to them, these platforms are free to play, not gambling, and they do have consumer protections, just not the ones the state recognizes.
Broader Implications and National Context
Louisiana isn’t alone. States like Michigan, Montana, and even Washington have all recently stepped up enforcement or passed laws targeting sweepstakes casinos. The message is clear: if you’re running casino-style games without a license, expect regulators to come knocking.
Conclusion
Attorney General Murrill’s decisive stance marks a significant turning point in the regulation of online sweepstakes casinos in Louisiana. Operators must now reassess their business models to ensure compliance with state laws or face substantial legal consequences. And for other states watching this unfold? Don’t be surprised if they follow suit. The sweepstakes loophole is shrinking fast.
Blaise Luis
