Louisiana is gearing up to ban sweepstakes casinos, as long as it gets the thumbs up. With two unanimous votes in two different sessions, that’s all that stands between it and becoming the second state in the US to ban the newly thriving style of gambling.
The bill to ban sweepstakes casinos passed with a unanimous 99-0 vote, after a 39-0 vote in the state’s Senate in April. It all comes as multiple states are looking to eliminate the loophole-riddled business, which often avoids gambling regulations due to not technically being gambling.
Sweepstakes casinos run a dual currency system, which is sold in bundles. “Gold coins” are used to play the games, while “Sweep coins” – often using branded names – allow you to play for cash prizes. However, there are protections on these platforms for those who could be weak to gambling addiction.
Plus, in the eyes of the state, these often cannot be taxed or benefited from as with regular gambling. Speaking to the Senate earlier in the year, Senator Adam Bass said:
“So-called sweepstakes casinos claim to simply be a sweepstakes contest but are in fact unregulated and untaxed gambling.”
Louisiana looks likely to ban sweepstakes casinos
Louisiana’s Governor Jeff Landry is the next step, and once it’s signed into law, these variations on casinos will have to vacate the state as soon as possible. New York recently ran these out of state, while others have fallen into bureaucratic holes, where the bill simply ran out of time.
The bill will come down hard on those providing platforms for operators in the state. It’ll also affect those involved in the affiliate marketing side, or even advertisers, as the fines will be hefty, up to $100,000. There’s also prison time on the cards, with up to five years for anyone caught involved with sweepstakes casinos.
