Sweepstakes casinos under siege as Louisiana joins America’s growing crackdown
Another state, another strike against sweepstakes. Louisiana has fired a fresh warning shot in the war on sweepstakes casinos. Senate Bill 181 (SB181), filed on April 4 by Senator Adam Bass, could make online sweepstakes-style gambling illegal statewide.
The bill proposes a sweeping ban on online games using a dual-currency system to offer prizes, awards or cash equivalents. Any game that mimics a casino, lottery, or sportsbook could fall foul. If passed, SB181 would impose strict penalties on operators and platform providers, affiliates, developers, and even advertisers.
It’s the latest salvo in a wider push by U.S. lawmakers to slam shut the legal loopholes that sweepstakes casinos have long exploited. The LegiScan’s SB181 tracker indicates that Louisiana’s Judiciary B Committee referred the bill. Industry voices are scrambling.
Harsh penalties and sweeping definitions
Louisiana’s proposed law isn’t just harsh. It is surgical. SB181 makes it a crime to operate, promote or support online sweepstakes casinos in any form. Fines start at $10,000 (€9,300) per violation. Prison terms could stretch to five years. The bill also classifies violations as deceptive trade practices, opening the door for civil suits on top of criminal penalties.
Licensed gambling operators and vendors in Louisiana would be barred from associating with sweepstakes brands. Even suppliers working with these platforms outside the U.S. could face enforcement if they hold a Louisiana licence.
That’s not just regulation—it’s excommunication.
The bigger sweepstakes storm hitting America
Louisiana’s not alone. In 2025 alone, New York, Maryland, New Jersey, Connecticut and Illinois have all advanced legislation to limit or outright ban sweepstakes gambling. Mississippi’s attempt nearly made it, passing both chambers before dying over unrelated sports betting language.
Across the board, the message is consistent: sweepstakes-style platforms are no longer welcome in legal grey areas. Regulators want clarity. Operators want loopholes. Only one side is likely to win.
The trend is widespread and was the focus of a recent SiGMA analysis on America’s sweepstakes ban wave. It exposed the divide across America, with states split between banning sweepstakes outright or regulating and taxing them.
Trump, tech and the politics of punishment
This isn’t happening in isolation. The mood has shifted, and MAGA-aligned Republicans, many tied to Trump’s political base, are turning against unlicensed online gambling.
Why? It’s a mix of moral crusading, economic protectionism, and cultural control.
These platforms often duck tax, dodge oversight, and dress up like casinos—no wonder they’re easy to go after. In a year when spin beats sense, they’re easy prey.
At the same time, legal pressure is mounting from other directions. In March, a major federal RICO lawsuit targeted Apple and Google for distributing sweepstakes apps. Plaintiffs argue these tech giants facilitated illegal gambling.
Although separate from SB181, that lawsuit adds weight to the idea that unregulated sweepstakes gambling is a national concern, not just a local legal headache.
Industry fires back but may be losing ground
The bans aren’t without backlash. After SB181 landed, the SPGA hit back with a sharp response.
“This misguided legislation endangers lawful businesses and sends a chilling message to investors,” it said, warning that SB181’s broad definitions could even criminalise airline loyalty schemes or hotel reward programmes.
According to SPGA, most users never actually spend a dime. That, they say, sets them apart from real casinos and puts them in the camp of marketing tools, not gambling sites.
But critics aren’t convinced. Critics argue these platforms use ‘free entry’ rules as fig leaves to dodge scrutiny. They let players buy virtual currency and then exchange it later for real-world prizes—the line between “legal” and “illegal” blurs, often by design.
And unlike licensed casinos, these sites usually lack basic protections—age verification, responsible gaming, and independent testing are often absent.
In states like Ohio, regulators have already shown they’re willing to act. As covered in a recent SiGMA article, Ohio cracked down hard on prediction markets linked to companies like Kalshi and Crypto.com, calling them illegal under current rules.
This is not a one-off. It’s a wave.
