Louisiana Governor Vetoes Anti-Sweeps Bill

Louisiana Gov. Jeff Landry vetoed SB 181 on Thursday, saying the bill that would have banned online sweepstakes casinos was “not necessary” due to the work by state’s gaming control board on illegal gaming and due to the legislation’s language being “overly broad.”

Landry’s veto is somewhat surprising considering the bill passed 99-0 in the House on June 3 and faced no issues during Senate concurrence. The upper chamber moved it to the House by a 39-0 vote on April 29.

Sen. Adam Bass’ bill did go further than comparable anti-sweeps legislation in other states, with fines ranging from $10,000 to $100,000 and a potential prison sentence of up to five years for violations. The bill would have made it “unlawful for any applicant, licensed or permitted entity, geolocation provider, gaming manufacturer, gaming supplier, platform provider, promoter, or media affiliate to provide support for the operation, conduct, or promotion of illegal gambling by computer, including illegal online sweepstakes games as described in this Section within the state.”

In order to override Landry’s veto, both the House and Senate require a two-thirds majority vote. The legislature must reconvene for a veto session on the 40th day after adjournment of the regular session unless a majority of either chamber votes to waive the session.

More on Landry’s veto

In his letter to President of the Senate Cameron Henry and Secretary of the Senate Yolanda Dixon, Landry spelled out the regulatory authority of the Louisiana Gaming Control Board. The governor noted the agency “is already taking active steps to combat illegal gambling in Louisiana” and cited the cease-and-desist letter sent to Bovada as one such example.

Landry added that the board, state Attorney General’s Office, and Louisiana State Police Gaming Division “are all monitoring this type of activity and will continue to issue additional cease-and-desist letters to similar illegal offshore wagering and illegal online sweepstakes companies that intentionally design their business models to circumvent Louisiana gaming laws and regulations.”

In backing the board’s jurisdiction on such matters, Landry stated Bass’ bill “is a solution in search of a problem that is already being solved by our current system.” The governor then said the bill being overly broad “could be interpreted in an adverse manner which may harm or impede our current enforcement action taken against these bad actors.”

The Social and Promotional Games Association (SPGA), a trade group advocating for online gaming with sweepstakes prizing, issued a statement Friday morning in support of Landry’s decision.

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