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Louisiana Attorney General Says Online Sweepstakes Casinos Are Illegal

Robert Linnehan

By Robert Linnehan in Sports Betting News

Published:


NFL: Super Bowl LIX-Anti-Counterfeiting Press Conference
Feb 5, 2025; New Orleans, LA, USA; Liz Murrill, Louisiana Attorney General during the Super Bowl LIX anti counterfeiting press conference at the New Orleans Convention Center. Mandatory Credit: Kirby Lee-Imagn Images
  • Louisiana Attorney General Liz Murrill released an opinion on dual-currency online sweepstakes games
  • Murrill noted online sweepstakes casinos are operating as illegal businesses under Louisiana law
  • The Department of Justice, in coordination with the Louisiana Gaming Control Board and State Police, is empowered to shut down operations

Louisiana Attorney General Liz Murrill issued a legal opinion on dual-currency online sweepstakes games in the state, declaring the casino-style games to be in violation of Louisiana laws that constitute illegal gambling.

Sen. Rick Edmonds (R-7) requested an opinion on June 18 from Murrill as to the legality of “online sweepstakes casino businesses” currently operating in the state. Murrill issued the following conclusion:

“Following a review of applicable Louisiana statutes and legal precedent, it is the opinion of this office that online businesses offering casino-style games – purporting to be sweepstakes or social gaming platforms – are operating in violation of Louisiana law. These activities constitute illegal gambling and illegal gambling by computer under multiple provisions,” she wrote.

Clearly Violates Louisiana Law

Murrill released the first legal opinion from an attorney general on dual-currency sweepstakes gaming.

Online sweepstakes casinos in Louisiana allege they are not conducting internet gaming or gambling, Murrill noted, yet they offer games such as poker, slot machines, blackjacks, and other casino-style games using a dual-currency system.

“While the operators claim these games are promotions in nature, users may purchase ‘Gold Coins’ and receive ‘Sweeps Coins’ ‘as a bonus,’ typically in the same dollar amount as the purchase, which can then be used to play games and be redeemed for cash or valuable prizes,” she wrote.

The operations are promoted year round and are not in promotion of a legitimate business operation, Murrill said. They also lack necessary age verification safeguards, do not geolocate players, have improper “know your customer” controls, and are not permissible under state gaming statutes and regulation.

Unlike legitimate sweepstakes and rewards programs, such as those offered by McDonalds or Starbucks, illegal sweepstakes casinos are not offered by a “legitimate business of goods, operate persistently, target vulnerable populations, require purchase to engage, and allow conversation of winnings into cash.”

Bill to Ban Sweepstakes Vetoed

Murrill pointed to Gov. Jeff Landry’s (R) recent veto of SB 181, a bill to ban dual-currency sweepstakes gaming and increase penalties for offering illegal gaming. Landry noted in his veto message that the bill is unnecessary, as the Louisiana Gaming Control Board, Louisiana State Police Gaming Enforcement Division, and Louisiana Attorney General’s Office are already tasked with combating illegal gaming.

While it would have been a valuable tool in “memorializing the illegality” of dual-currency sweepstakes in the state, Murrill wrote the Attorney General’s office has civil enforcement powers that include injunctive relief, restitution, disgorgement of profits, sequestration of assets, and civil penalties.

Criminal penalties for illegal gambling operations, gambling by computer, and gambling by electronic sweepstakes device include up to five years imprisonment and a fine of up to $20,000, or both.

“The Attorney General’s Office, the Louisiana Gaming Control Board, and the Louisiana State Police collective have the power to investigate, issue cease and desist orders, refer cases for prosecution, and initiate both criminal and civil actions. The Louisiana Gaming Control Board has already ordered these businesses to immediately terminate operations in Louisiana,” Murril wrote.

Robert Linnehan
Robert Linnehan

Regulatory Writer and Editor

Rob covers all regulatory developments in online gambling. He specializes in US sports betting news along with casino regulation news as one of the most trusted sources in the country.

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