Louisiana Governor Jeff Landry (R) has vetoed legislation that would have prohibited websites from holding sweepstakes contests that opponents claim violate online gambling rules.

Senate Bill 181 was approved by the Louisiana State Legislature earlier this month.

A "dual-currency system" that enables participants to swap the currency for any prize, reward, cash, or cash equivalent is prohibited by the statute from being used in any online game, contest, or promotion.  SB181 would have prohibited online sweepstakes platforms from offering lottery and casino-style games.

The law was passed in the midst of the explosion of social gaming websites that provide free-to-play table games and slots where users can earn or buy sweeps coins, which are secondary currencies that can be exchanged for real money. 

The governor says the bill is unnecessary.

Although the Louisiana State Legislature unanimously supported the anti-sweepstakes bill introduced by state senator Adam Bass (R-Bossier City), the state's top politician claims the legislation is unnecessary.  According to Landry, the Louisiana Gaming Control Board (LGCB), which oversees all commercial gaming in the state except for the state-run lottery, is already taking steps to prevent illicit gambling organizations from operating in Bayou State.

"The [Louisiana Gaming Control] Board is already taking active steps to combat illegal gambling in Louisiana, especially against illegal offshore wagering and illegal online sweepstakes companies operating in Louisiana. The Board’s firm stance against such operations is aimed at protecting Louisiana residents from unregulated gambling activities that violate state laws,” Landry wrote lawmakers.

“The Board and its regulatory partners will take further action as deemed necessary to enforce state gaming laws, protect patrons and bettors, and maintain the integrity of Louisiana’s gaming industry,” the governor in his first term continued. “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.”

The LGCB issued a cease-and-desist notice to Bovada, a well-known offshore, unlicensed online gambling website, in August 2024.  However, Bovada, which presents itself as an online sportsbook and casino, is far different from the several contentious sweepstakes websites that still function in Louisiana and claim to run sweepstakes campaigns in a manner akin to how a merchant may use a spinning wheel to facilitate an online coupon offer.

The Sweeps Industry Honors

Landry's decision to deny SB181, which the advocacy group claims would have "dramatically restricted lawful digital entertainment," was praised by the Social and Promotional Games Association (SPGA).

"Gov. Landry’s veto is a powerful affirmation that not all online games are gambling and that innovation should not be met with prohibition,” read a SPGA statement provided to Casino.org. “This legislation blurred critical legal distinctions and risked punishing legitimate businesses that comply with well-established sweepstakes laws and offer free-to-play experiences.”

Because sweepstakes-based games are "free to play" and never require a purchase to win, the SPGA contends that they are not gambling and instead fall under legal frameworks.

 By reintroducing the bill for a vote, the Louisiana State Legislature can overcome Landry's veto.  SB181 would become law if a two-thirds majority was reached in each chamber.