What does the future hold for sweepstakes casinos in the state of Louisiana? It depends upon which government official you ask.
The most recent member of the state legislature to weigh in on the topic is Louisiana Attorney General Liz Murrill. Murrill issued a legal opinion declaring that online sweepstakes casinos are illegal under Louisiana state law.
Murrill believes that the sweepstakes portion of social casinos, in which players win sweepstakes coins that can later be exchanged for prizes, including sums of cash, too closely mirrors real money casino action. In her opinion, that makes it gambling. She took issue with the popular refrain that sweepstakes casinos are similar to contests run by companies like McDonald's or Starbucks and therefore are not gambling.
“These operations are promoted year-round, are not in promotion of some legitimate business operation, feature jackpots and wagering elements, pay tables, and profit from user participation by selling tokens or credits,” Murrill wrote in her opinion. “They are not licensed or regulated in Louisiana, do not adequately verify age, do not geolocate the players, do not perform proper ‘know your customer’ steps, and are not permissible under Louisiana gaming statutes and regulations.”
Murrill’s opinion comes less than a month after Louisiana Governor Jeff Landry vetoed a bill that landed on his desk intending to ban sweepstakes casinos from operating in the state. Senate Bill 181 was unanimously approved in the state legislature by a 99-0 vote.
Following Landry’s veto, state Senator Rick Edmonds requested an inquiry into the veto decision. It was this inquiry that led to Murrill’s opinion on the legality of sweepstakes casinos.
In issuing his veto, Landry felt that the bill was too far-reaching and unnecessary.
“This bill attempts to criminalize certain secondary gambling activities on the internet that are already prohibited in Louisiana,” Landry said.
“Our current Louisiana Gaming Control Board (LGCB) has the regulatory authority, control, and jurisdiction over all aspects of gaming activities and operations pursuant to the Louisiana Gaming Control Law.”
It should be noted that Murrill’s statement is merely an opinion and does not carry the same weight as passed legislation. However, that isn’t stopping the Louisiana government from charging ahead in its determination to derail sweepstakes casinos in the state.
The Attorney General’s Office, the Louisiana Gaming Control Board, and the Louisiana State Police are issuing cease-and-desist orders to sweepstakes casino sites. A total of 42 cease-and-desist orders were issued to sweepstakes casino operators in June.
The state is preparing to pursue criminal prosecutions and asset seizures. Punishment could include fines up to $20,000 and prison terms reaching as much as five years in length. There is also the potential for civil penalties to be administered for breach of consumer protection laws.
Already, some sweepstakes casino operators have decided staying in Louisiana simply isn’t worth the potential legal issues. Both Chanced Casino and WOW Vegas Casino recently announced that they would be shuttering operations in the Bayou State.
"As of July 11, customers in the state of Louisiana will no longer be able to access or play on WOW Vegas," the company said in an email issued to its Louisiana players.
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