Sweepstakes casino sites in Louisiana have received a reprieve after Governor Jeff Landry vetoed Senate Bill 181 (SB181), legislation aimed at banning the vertical. The bill, which had successfully passed through both the state’s House of Representatives and Senate, sought to prohibit a wide range of online games, contests, and promotions utilising dual-currency systems for prizes or simulating casino-style gaming, lottery, and sports betting.

In his veto letter, Governor Landry stated that he believes the legislation covers issues already within the purview of the Louisiana Gaming Control Board (LGCB) and that some of its language is “overly broad.”

Governor Landry specifically noted the steps the LGCB is already taking to combat illegal gambling in Louisiana. He highlighted, as reported by iGaming Times, a recent cease and desist letter sent to offshore operator Bovada, which subsequently led to the operator’s exit from the state. Landry also stated, as reported by iGaming Times, that the LGCB, the Louisiana Attorney General’s Office, and the Louisiana State Police Gaming Division are all actively monitoring this type of activity and will “continue to issue additional cease-and-desist letters to similar illegal offshore wagering and illegal online sweepstakes companies that intentionally design their business models to circumvent Louisiana gaming laws and regulations.”

The Social and Promotional Games Association (SPGA), a trade group representing several sweepstakes operators, welcomed Governor Landry’s decision. An SPGA spokesperson described the veto as a “powerful affirmation” that not all online games constitute gambling. The spokesperson added, as reported by iGaming Times, that “Innovation should not be met with prohibition,” and argued that the vetoed legislation “blurred critical legal distinctions and risked punishing legitimate businesses that comply with well-established sweepstakes laws and offer free-to-play experiences.”

Despite Governor Landry’s veto in Louisiana, the sweepstakes casino sector has faced several significant setbacks in recent months across the United States. Montana and Connecticut have notably become the first two US states to enact outright bans against the vertical. In May, Montana became the first US state to explicitly ban the vertical when Governor Greg Gianforte signed SB555 into law. This bill amended Montana’s existing gaming laws to stipulate that the definition of internet gambling includes platforms that “allows consumers to place a bet using any form of currency, and make payouts of any form of currency.” Meanwhile, earlier this week, Governor Ned Lamont signed SB 1235 into law in Connecticut, effectively banning online sweepstakes casinos and establishing legal repercussions for their operation or promotion within the state.

The situation in Louisiana highlights the ongoing debate and varied approaches among US states regarding the regulation of sweepstakes casino models, with some governors preferring to rely on existing regulatory authority while others opt for explicit legislative bans.