Louisiana, Mississippi Gaming Agencies Target Offshore And Sweepstakes Operators

Gaming boards in Louisiana and Mississippi sent flurries of cease-and-desist letters Tuesday as both state agencies looked to crack down on what they perceive to be illegal gaming.

The Louisiana Gaming Control Board, perhaps emboldened by Gov. Jeff Landry’s confidence in the agency in his veto message of SB 181 that would have made online sweepstakes casinos illegal in the state, said it sent out more than 40 cease-and-desist letters. The board said they were sent to “combat the rise of illegal offshore wagering and unauthorized online sweepstakes operations targeting Louisiana residents.”

The Mississippi Gaming Commission sent 10 cease-and-desist letters to various offshore and sweeps operators. There is no form of regulated online gaming in the Magnolia State, as lawmakers again failed to pass legislation that would have brought mobile sports betting to the state earlier this year. There was also language in that bill that would have banned online sweeps.

Louisiana kicks Bovada out

The LGCB is hoping the aggressive stance will provide a similar outcome to a cease-and-desist letter recently sent to Bovada. The large offshore gaming platform recently added Louisiana to its ever-growing list of states where the “use of the website and associated services are expressly prohibited” in its terms of service.

That is usually how Bovada acknowledges it has received such a letter, as it has not mounted a legal challenge in any state where a gaming agency sent one. The list is currently at 20 states, including all seven in which real-money online casino is legal.

“These actions send a clear message,” said Christopher B. Hebert, chairman of the Louisiana Gaming Control Board. “Louisiana will not tolerate illegal operators who put our citizens at risk and undermine the fairness and integrity of our gaming industry. We will continue to use every enforcement tool available to protect the public and uphold the law.”

Other operators on the list the LGCB sent to Casino Reports via email included VGW Holdings, which operates popular sweeps sites Chumba Casino and Luckyland Slots; Fliff; and BetUS.

Mississippi goes after the big names

Bovada and sweepstakes site Chumba Casino were arguably the most high-profile operators on the receiving end of the Mississippi Gaming Commission’s cease-and-desist letters. Other notable offshore platforms in the agency’s crosshairs were sportsbooks betus.com.pa, betonline.ag, and mybookie.ag.

“Our laws are clear that casino style gaming and sports wagering are not allowed online in Mississippi, outside of a licensed casino,” MGC Executive Director Jay McDaniel said in a release. “The MGC will aggressively pursue both domestic and offshore illegal operators, and the MGC is currently providing criminal case files to our state and federal law enforcement partners and requesting prosecution.

“Companies like those put on notice today mislead our residents by claiming to be legal outlets, when in fact they operate illegally and without providing any tax revenue or other tangible benefit to Mississippi.”