Louisiana, Connecticut, and New York have moved closer to banning sweepstakes casinos. The Louisiana Senate became the third legislative chamber in the US to pass a ban on social gaming sites after Mississippi and Maryland. At the same time, bills in the other two state have made progress through committees, moving closer to a floor vote.
While the three bills have progressed, it’s yet to be seen if they will succeed. Lawmakers in several states have introduced similar ban bills on sweepstakes casinos, but none have become law yet. Some are still active, while a few have failed.
Louisiana Senate unanimously passes sweeps ban
On April 30, the Louisiana Senate passed a ban on sweepstakes casinos with a 39-0 vote. Senate Bill 181 introduced on April 4, has moved quickly through the Judiciary B and Finance committees, signaling bipartisan support and legislative priority.
The bill targets devices that utilize dual-currency payment systems, “allowing the player to exchange the currency for any prize or award or cash or cash equivalents, or any chance to win any prize or award or cash or cash equivalents.” The ban covers casino-style games such as slots, lottery games, and sports wagering. Violation penalties include fines of between $10,000 and $100,000 and prison sentences of up to five years. If the House passes SB181, it takes effect on August 1.
SB181’s rapid progress could be linked to other gambling expansion efforts in Louisiana. Rep. Vanessa Caston LaFleur recently introduced an online lottery bill in the House. Meanwhile, State Sen. Kirk Talbot stated that online casino legislation is under discussion in March. Many lawmakers see sweepstakes, social casinos, and other unregulated platforms as competition for regulated gambling. As a result, they often look to clear the path for future legalization initiatives.
New York and Connecticut bills gain ground
In Connecticut, Senate Bill 1235 took a major step forward on April 23, as the Senate Judiciary Committee approved it with a 37-0 vote. The proposal, which would ban sweepstakes casinos and lottery courier apps, had already unanimously passed the Joint Committee on General Law in March. The bill now awaits the Office of Legislative Research and the Office of Fiscal Analysis, scheduled for a May 5 review.
At the end of April, New York also saw legislative traction. On April 30, the Assembly Racing and Wagering Committee approved Assembly Bill 6745 (A6745) with an 11-0 vote. The bill’s next stop is the Codes committee. A6745 is a companion bill to Senate Bill 5935 (SB 5935), which passed the chamber’s Racing, Gaming, and Wagering Committee in March. It then moved to the Senate floor, and on April 30, it was amended on the third reading. Notably, after it reached the Senate floor, SB5935 caused a mass exodus of sweepstakes platforms in anticipation of a potential ban.
Mixed results in other states
Despite the forward momentum of the three bills in Louisiana, Connecticut, and New York, it doesn’t necessarily mean they will pass, as witnessed by the failures in Arkansas, Maryland, and Mississippi.
Like Louisiana, the Senate in Mississippi and Maryland also passed a ban on sweepstakes casinos. However, the proposals failed to get approval in the House. In Maryland, the bill ran out of time, as the legislative session ended, while in Mississippi, the reason was a disagreement between the two chambers on mobile sports betting. Meanwhile, the author of the ban bill in Arkansas withdrew the proposal.
Bills in other states, like Illinois and New York, are still in play. In the former, a Senate committee amended a proposal on a retail sweepstakes machine ban to include online sweepstakes casinos. That bill has since returned to its original committee. A similar ban proposal in New Jersey has stalled since its introduction in March. However, a recent endorsement by the New Jersey Responsible Gaming Task Force could boost its chances. New Jersey Gov. Phil Murphy formed the task force last year to evaluate regulated and unregulated gaming in the state.
