Three More States On Verge Of Banning Sweepstakes Casinos

Oklahoma is one signature away from becoming the latest state to ban sweepstakes-style casinos, and it’s not the only state moving against dual-currency operators this spring.

Senate Bill 1589 cleared the Oklahoma House Monday by a 65-21 vote after passing the Senate unanimously back in March. It now sits on the desk of Gov. Kevin Stitt, who has five days to sign, veto, or do nothing. If he takes no action, the bill becomes law and the ban takes effect Nov. 1.

Meanwhile, Louisiana lawmakers have sent Gov. Jeff Landry a bill that would add several gambling crimes, including running an electronic sweepstakes operation, to the state’s racketeering statute. And in Iowa, a gaming bill on its way to Gov. Kim Reynolds gives the state’s gaming commission explicit authority to go after “illegal sweepstakes” operators.

Oklahoma!

SB 1589 does what most sweeps bans do: defines the activity, then makes it a crime. The bill defines “online casino games” as any internet-accessible game that, upon risking any “representative of value,” simulates a slot machine, lottery, bingo, or other gambling activity already prohibited under Oklahoma law.

The “representative of value” term is the teeth of the bill, as it’s defined as any currency used in “a dual-currency system of payment that allows a person to exchange such currency” for a prize, cash, or cash equivalent. 

The penalties extend beyond the operators themselves. SB 1589 reaches owners, employees, geolocation providers, gaming suppliers, platform providers, promoters, and media affiliates that deal or provide support for the games. A violation is a Class C2 felony in Oklahoma, carrying a fine of $500 to $2,000 plus prison time of up to seven years.

The bill carves out tribal gaming, ensuring games offered on Indian lands in compliance with the Indian Gaming Regulatory Act continue uninterrupted. Charity gaming under the Oklahoma Charity Games Act is also exempt.

Stitt’s intentions on the bill aren’t clear. The governor has been vocal on other gambling matters this year, saying, for example, he’d only sign a sports betting bill that didn’t involve tribal partnerships, but SB 1589 was drafted with tribal input and includes the tribe-friendly carve-out added by amendment, per SBC Americas. 

Racketeering

If Oklahoma’s approach is direct, Louisiana’s is severe.

House Bill 53, sponsored by Rep. Bryan Fontenot, doesn’t create a new crime. Instead, it adds seven existing gambling offenses to the list of predicate crimes under the Louisiana Racketeering Act, with one addition being gambling by electronic sweepstakes device.

A racketeering conviction in Louisiana carries a fine of up to $1 million and up to 50 years imprisonment at hard labor. 

The bill cleared the Louisiana House 87-11 on March 30 and the Senate 29-7 on April 27. It was signed by both chamber leaders earlier this month and now awaits Landry’s decision.

Landry vetoed a narrower sweeps ban last year. In his veto statement, he called the bill “a solution in search of a problem” already being handled by the Louisiana Gaming Control Board, state police, and the Attorney General’s Office. The LGCB sent cease-and-desist orders to operators of sweepstakes sites and offshore gambling platforms shortly after that veto.

A second Louisiana bill, HB 883, is also still moving. That measure takes the more conventional approach of defining dual-currency sweeps as illegal gambling and authorizing the AG’s office to seek injunctions. 

Iowa adds on

Senate Bill 2289 in Iowa is a broad bill covering matters under the Department of Inspections, Appeals, and Licensing. Tucked inside are amendments giving the Iowa Racing and Gaming Commission explicit authority to issue cease-and-desist orders against any person offering “games of chance, gambling, sports wagering, or illegal sweepstakes” without an appropriate license.

The bill doesn’t impose criminal penalties on sweeps operators directly, but it gives Iowa regulators a way to go after them. It has cleared both chambers and, per LegiScan, is on its way to Reynolds.

Add it up

If Stitt signs SB 1589, Oklahoma will join a growing list of states moving against sweepstakes casinos, including California, Connecticut, Indiana, Maine, Montana, New Jersey, and New York.

Other states have tried and failed this year. Virginia’s sweeps ban died in the legislature, with lawmakers planning to revisit the issue in 2027. A similar effort in Mississippi also stalled. Bills remain alive in Maryland and Tennessee.