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Committee backs bill to ban unregulated online sweepstakes casinos, sponsor says it will protect consumers
Summary
Senate Bill 181, sponsored by Senator Bass, was reported favorably as amended by the Senate Committee on Judiciary B. The bill would classify real-money sweepstakes casinos as illegal gambling, authorize enforcement actions and penalties, and was supported by brick-and-mortar casinos, game vendors and law enforcement.
The Senate Committee on Judiciary B on Tuesday reported Senate Bill 181 as amended after testimony from the bill sponsor, state gaming regulators, law enforcement and casino industry representatives.
Senator Jeremy Bass said SB181 grew from joint work on iGaming and aims to stop illegal online sweepstakes casinos that the sponsor said take an estimated $4.5 billion in wagers from Louisiana residents each year. "These online casinos...evade consumer protections, responsible gaming and anti-money-laundering requirements to which gambling in Louisiana would otherwise be subject," Bass told the committee, and he said the bill narrowly defines sweepstakes casinos to avoid affecting legitimate commercial promotions.
Don Veil, director of the gaming division at the attorney general's office, and Major Adam Albright of the Louisiana State Police Gaming Enforcement Division appeared in support and described coordination among regulators and enforcement agencies. Industry witnesses including Wade Doody of the Louisiana Casino Association and Howard Glaser of Light & Wonder told the committee the measure has broad support from the regulated casino industry and responsible-gaming advocates.
Howard Glaser said a web search produced dozens of sites accessible in Louisiana, including operators that lack age verification and consumer protections. "These online casinos...are using Louisiana residents really as an ATM to pull money out of the state for untaxed, unlicensed gambling," Glaser said.
The committee adopted a technical amendment (Amendment set 696) to correct wording in the bill and then, by unanimous consent, reported SB181 as amended; Senator McMath moved favorable reporting. The committee record lists additional supporters read into the record, including the Louisiana Casino Association and several gaming vendors; no opposition speakers were recorded in committee testimony.
Sponsor Bass said the bill does not target legitimate, widely used promotional sweepstakes such as McDonald's Monopoly or Marriott rewards. He also cited other states' recent actions, including cease-and-desist orders and criminal prosecutions against some operators, as evidence the approach is effective.
SB181 will proceed to the full Senate with the committee's amendments; the transcript records the committee's adoption of a technical amendment and favorable report but does not include a roll-call vote.
