Louisiana lawmakers moved forward this week with a series of bills aimed at tightening restrictions on sweepstakes casinos, advancing measures that would expand enforcement powers and increase penalties tied to online gaming operations.
In a unanimous 98-0 vote on April 14, the Louisiana House passed House Bill 883, introduced by Rep. Laurie Schlegel, sending it to the Senate for further consideration. The proposal focuses on dual-currency online games that award prizes and mimic gambling activity, adding them to the state’s definition of illegal gambling.
The bill extends responsibility beyond operators, covering a wide network of related parties. That includes platform providers, content suppliers, geolocation services, promoters, media affiliates, and any entity that knowingly supports or facilitates such platforms.
Violations under HB 883 carry strict consequences. Operators could face fines of up to $40,000 and prison sentences of up to five years. Each online wager accepted would be treated as a separate offense, significantly increasing potential penalties.
Expanded Enforcement Authority
The bill strengthens regulatory tools. It allows the Louisiana Attorney General or the Chair of the Louisiana Gaming Control Board to issue cease-and-desist orders to anyone involved in operating or promoting computer-based gambling in the state, including sweepstakes platforms and payment processors.
Recipients would have 10 days to comply. The Attorney General’s office could also seek injunctions against noncompliant operators.
The proposal builds on prior state actions. Governor Jeff Landry vetoed a similar bill, saying existing powers were sufficient. After that veto, the Attorney General’s office issued a legal opinion declaring sweepstakes casinos illegal and confirmed more than 40 cease-and-desist orders had been sent.
If enacted, HB 883 would codify that stance.
Racketeering Bill Raises Stakes
Alongside HB 883, lawmakers advanced House Bill 53, which passed earlier by an 86-11 vote and has moved to the Senate after clearing committee review.
Sponsored by Rep. Bryan Fontenot, HB 53 expands Louisiana’s Racketeer Influenced and Corrupt Organizations statute to include electronic sweepstakes gaming, public gambling, and bribery involving athletes. It reclassifies such conduct as racketeering rather than standard gambling violations.
Penalties under racketeering laws are far steeper, including fines up to $1 million and prison sentences reaching 50 years.
Louisiana Chief Deputy Attorney General Larry Frieman said the gaming division supports HB 53’s approach, describing it as stricter than most anti-gambling laws in other states.
Broader Enforcement Trend
Supporters argue sweepstakes platforms operate in a legal grey area by using dual-currency systems that resemble casino gaming while avoiding traditional gambling definitions. The bills aim to close that gap by broadening enforcement tools.
The push reflects a wider national shift as states reassess how to regulate sweepstakes-style gaming models, with some tightening rules and others moving toward bans.
If both bills become law, Louisiana would adopt one of the strictest enforcement frameworks in the country, elevating sweepstakes violations to serious criminal or racketeering offenses.
The 2026 legislative session runs until June 1, leaving time for further debate and amendments.
Source:
“Louisiana House passes second bill targeting sweepstakes casinos”, sbcamericas.com, April 15, 2026
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