Louisiana, Connecticut Sweepstakes Prohibition Bills Inch Closer to Legalization

• Bills to prohibit sweepstakes gaming in Louisiana, Connecticut have inched forward to legalization
• Connecticut bill to ban sweepstakes approved by Senate last week
• Louisiana bill to ban sweepstakes has been approved by the Senate, advanced to the House floor last week

---

Lawmakers in both Louisiana and Connecticut last week moved two pieces of legislation forward to ban dual-currency sweepstakes in their respective states.

The Louisiana House Committee on Administration of Criminal Justice last week unanimously moved SB 181 forward to the House floor. The Senate-approved bill aims to ban dual-currency sweepstakes gaming and prohibit casino-style gaming such as slot machines, lottery games, and sports betting.

The Connecticut Senate last week also unanimously approved SB 1235 by a 36-0 vote, moving the sweepstakes prohibition bill over to the House.

Sweepstakes Gaming Under Fire

The Louisiana House Committee on Administration of Criminal Justice approved Sen. Adam Bass’s (R-36) bill, SB 181 by an 8-0 vote. The bill can now be heard on the House floor and has been passed along at every stop with very little protest.

The Louisiana Senate approved the bill by a 39-0 vote in April.

If approved, the Louisiana Gaming Control Board will have the ability to bring civil enforcement actions and impose civil penalties on companies engaging in the illegal form of sweepstakes gaming. The Louisiana Gaming Control Board will have the ability to fine operators, promotors, media affiliates, or providers if they engage in or procure revenue from the illegal form of sweepstakes gaming. The board will be able to levy fines from $10,000 to $100,000 per incident.

Bass’s legislation prohibits sweepstakes games that utilize a dual-currency system of payment that allows a customer to exchange the currency for any prize, award, cash, cash equivalents, or a chance to win a prize that simulates a form of gambling.

The bill will ban sweepstakes gambling that mirrors the following:

• Casino-style gaming such as slot machines, video poker, and table games such as blackjack, roulette, craps and poker
• Lottery games, including draw games, instant win games, keno, and bingo
• Sports betting

It now awaits a potential vote on the House floor. If approved, it will be sent to Gov. Jeff Landry’s (R) desk for his signature.

In Connecticut, lawmakers in the House will likely consider Senate-approved SB 1235, a bill to ban sweepstakes in the state.

The bill prohibits unlicensed participation “in certain real or simulated online casino gaming or sports wagering.” The Connecticut Senate unanimously approved the legislation by a 36-0 vote on May 23.

It has yet to be assigned to a House committee.

VGW Leaving New York

As several states consider a legal ban on dual-currency sweepstakes gaming, one company announced it is voluntarily withdrawing from one of the biggest markets in the country.

Sweepstakes giant VGW Holdings Limited announced it will be withdrawing its sweepstakes gaming from New York this summer.

The company, which operates popular social sweepstakes brands Chumba Casino, Luckyland Slots, and Global Poker, will begin the process to withdraw its dual-currency sweepstakes gaming offerings in New York starting in June.

“We can confirm that following careful consideration, we’ve informed players of a decision to phase out Promotional Play (sweepstakes promotions) in the state of New York,” a VGW spokesperson said.

The company said it will phase out its sweepstakes offerings over the course of the next two months. Beginning June 2, customers will no longer be able to acquire sweepstakes coins through any means (purchase, mail-in requests, etc.) and will have one month to play through any remaining sweepstakes coins before they are frozen on July 2.

Customers will then have one final month to redeem any sweepstakes coins in New York. As of Aug. 1, players will no longer be able to redeem any sweeps coins won for prizes.