Sweepstakes Casino Operators in Louisiana Could Be Charged With Racketeering as Bill Sent to Governor's Desk

• Operators of sweepstakes casinos targeting Louisiana residents will face steep fines and potential prison sentences with new bill

• In cases where the racketeering activity exceeds $10,000 in value, the law requires that at least five years of any sentence be served without probation, parole, or suspension

• Most big name sweepstakes casinos have already exited the state

Louisiana lawmakers pushed through a bill that would charge sweepstakes casino operators with racketeering. 

Running an illegal online casino versus racketeering offenses could be the difference between a 5 year and 20 year prison sentence.  Worst still, each bet could be treated as a separate violation in some cases. Up to $1 million fines are possible as well.   Racketeering charges are often reserved for organized crime activities. 

In cases where the racketeering activity exceeds $10,000 in value, the law requires that at least five years of any sentence be served without probation, parole, or suspension.

HB53 from Rep. Bryan Fontenot specifically adds offenses such as gambling by computer and the use of electronic sweepstakes devices to Louisiana’s racketeering statute.  It passed the House on March 30 by a vote of 86–11 and won Senate approval on April 27 with a 27–9 margin.

The measure has now been sent to Governor Jeff Landry's desk and it was not immediately clear as to whether he would sign it into law or otherwise veto the bill.  Landry Last July, Landy did veto LandrySB181, a bill aimed at formalizing a criminal ban against offshore and sweepstakes casino sites. In his veto letter, Landry effectively said he vetoed the bill because he deemed it unnecessary.

HB 53 and SB 181 are not the same type of bill, even though both touch sweepstakes/illegal gambling.  SB 181 was a direct prohibition-style bill that could result in unintended consequences.  HB 53 would simply enhance enforcement tools as opposed to creating new regulatory frameworks.

Louisiana’s Attorney General has previously stated explicitly that sweepstakes casinos violate state law.   

Louisiana Gaming Control Board has already issued 40 plus cease-and-desist letters to operators. 

Many of the big name sweepstakes casinos have already left the market. 

Louisiana is now widely listed among states where Chumba is unavailable.  Likewise Wow Vegas does not accept customers from the state.  Stake.US also prohibits Louisiana residents. 

• Gilbert Horowitz, Gambling911.com