In the same week, two U.S. states have taken divergent paths regarding sweepstakes casino regulation. Louisiana Governor Jeff Landry has vetoed SB181, a bill aimed at banning dual-currency sweepstakes platforms, while Connecticut Governor Ned Lamont has signed SB1235 into law, establishing criminal penalties for unlicensed operators in the online gambling space. In Louisiana, SB181 was recently passed by both legislative chambers and aimed to clarify the illegality of sweepstakes casinos, making prosecution easier.
The bill proposed heightened financial penalties and imprisonment for violations. However, Governor Landry’s veto surprised many, as he argued existing laws sufficiently address illegal gambling. In his veto letter, he expressed that the Louisiana Gaming Control Board (LGCB) is actively combating illegal gambling, citing efforts against offshore wagering and illegal online sweepstakes.
He emphasized that the bill’s language was too broad and could hinder enforcement actions. This stance raises the question of whether the LGCB or the Louisiana Attorney General will take action against the sweepstakes casinos operating within the state. While Landry believes current laws are adequate, some sweepstakes platforms continue to operate, suggesting there may be differing interpretations of the legality of these businesses.
Central to this debate is whether the sweepstakes currencies constitute items of value under Louisiana law, which may complicate enforcement. On the other hand, Connecticut has taken a firmer stance by passing SB1235, making it a class A misdemeanor for unlicensed companies to offer simulated online casino gaming or sports wagers. This law positions Connecticut as the third state this year to enact anti-sweepstakes legislation, joining Montana and Nevada.
As this regulatory tug-of-war unfolds, it highlights the contrasting approaches lawmakers are taking toward the growing social casino industry.