Louisiana To Ban Sweepstakes Gaming With Governor Signature, Mulls Sports Betting Tax Increase

• The Louisiana House of Representatives unanimously approved SB 181, a bill to ban dual-currency sweepstakes gaming
• The House voted to approve the bill 99-0
• Bill bans dual-currency sweepstakes gaming and prohibits casino-style sweepstakes gaming

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Louisiana is one step away from becoming the third state to prohibit dual-currency sweepstakes gaming and may also increase the state’s online sports betting tax rate.

The Louisiana House of Representatives yesterday unanimously approved SB 181, a bill to ban dual-currency sweepstakes gaming and increase penalties for offering illegal gaming, by a 99-0 vote.

If signed into law by Gov. Jeff Landry (R), the Pelican State will become just the third state to ban the form of gaming behind Montana and Nevada.

Hardly Any Opposition for Bans

 Sen. Adam Bass (R-36) introduced his bill in early April.

The dual-currency sweepstakes banning bill had little to no opposition during any of its committee or floor stops. The Louisiana Senate approved the bill by a 39-0 vote in April and the House unanimously approved the bill on Monday.

The Louisiana Gaming Control Board will have the ability to bring civil enforcement actions and impose civil penalties on companies engaging in any illegal form of sweepstakes gaming. The Louisiana Gaming Control Board will be able 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

The bill now heads to Gov. Landry’s desk for his signature to be signed into law. If legalized, Louisiana will become the third state in the country to outlaw dual-currency sweepstakes gaming.

The Montana Senate and House of Representatives approved SB 555 in April. Gov. Gianforte just recently signed the bill into law, which will go into effect on Oct. 1, 2025. Online sweepstakes operators will have to leave the state by the enacting date.

Does Ban Undermine Consumer Choice?

The Social and Promotional Games Association criticized the passage of the Louisiana bill, claiming it undermines consumer choice by conflating legal entertainment with illegal gambling.

“We’re disappointed by yesterday’s vote in the Louisiana House. Legal sweepstakes platforms operate under well-established guidelines and are used by millions of adults, including Fortune 500 companies like Microsoft and Starbucks, to engage consumers through lawful, free-to-play promotions,” an SPGA representative noted.

If signed into law, it will threaten Louisiana’s economy by “stifling digital innovation and driving compliant companies out of the state,” the SPGA reported.

Louisiana Lawmakers Forward Sports Betting Tax Increase Bill

Louisiana lawmakers also took action on a bill that may increase the state’s online sports betting tax rate to 21.5%. The Senate Revenue and Fiscal Affairs committee gave Rep. Neil Riser’s (R-20) bill, HB 639, a favorable report on Monday.

Riser’s bill calls for an increase to the state’s online sports betting tax rate from its original 15% rate to 21.5%. The House approved Riser’s bill by a 73-15 vote in late May.

“This takes it from 15% to 21.5%. It does not touch the promotional caps. We had originally talked about the promotional caps, but now it’s just straight from 15% to 21.5%,” Riser said during the committee meeting.

In addition to increasing the state’s sports betting tax rate, Riser’s bill will also create the Supporting Programs, Opportunities, Resources, and Teams Fund.

The fund will receive 25% of the state’s sports betting revenues, which can be used by athletic departments of NCAA DI for the benefit of student athletes. Funds will be used for scholarships, insurance, medical coverage, facility enhancements, litigation settlement fees, and Alston Awards.

Under the terms of the bill, the following institutions will be eligible to receive revenues from the new fund:

• Grambling
• LSU
• Louisiana Lafayette
• Louisiana Tech
• McNeese State
• Nicholls State