Louisiana Gov. Smothers Anti-Sweepstakes Bill, Says Illegal Gaming Is Being Tackled

Governor Jeff Landry has vetoed a bill that sought to ban sweepstakes casinos in the state of Louisiana. According to him, the measure addressed a problem that is already being taken care of, and in a way that could have led to legal complications.

The US Pushes Back Against the Proliferation of Sweepstakes

With Governors and Senators having the final say on whether a legal measure would be signed into law, Jeff Landry, the governor of Louisiana, has vetoed a bill that sought to end sweepstakes in the state.

Sweepstakes, for context, are dual-currency gaming operators that have gained significant traction in the past few years. Due to the way in which their currency systems operate, their products are not legally defined as gambling, allowing them to circumvent regulatory and licensing hassles.

However, their growth has attracted the animosity of regulated industry stakeholders who have asserted that sweepstakes casinos constitute illegal gambling. Regulators and lawmakers in several states have therefore initiated a pushback against such companies, seeking to crack down on the sector.

The efforts have so far had somewhat mixed results, with many states rejecting bills seeking to ban sweepstakes. This is what happened in Louisiana too as Gov. Landry suggested that the bill could cause certain complications.

The Bill Was Unnecessary, Landry Argued

Gov. Landry justified his decision to strike down Senate Bill 181 with the fact that a variety of other anti-sweepstakes measures are already being taken or developed. He elaborated that the government has been working closely with the Louisiana Gaming Control Board (LGCB) to prevent the offering of all kinds of illegal gambling in the state.

Landry therefore concluded that the bill addresses a problem that is already being addressed. He also noted that the bill’s broader scope could have led to certain legal complications.

This bill is a solution in search of a problem that is already being solved by our current system, and some of the language in this bill is overly broad and could be interpreted in an adverse manner which may harm or impede our current enforcement actions taken against these bad actors.

Governor Jeff Landry

Landry’s implication that the bill could have led to complications is consistent with an earlier statement by the Social and Promotional Games Association (SPGA), a body promoting responsible sweepstakes gaming. According to the SPGA, the measure could have misclassified certain non-gambling products as illegal, potentially hurting businesses.

In the meantime, a measure seeking to raise the state sports betting tax is also awaiting a signature.