Louisiana Enacts Tough Anti-Sweepstakes Casino Laws

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Wed Aug 05, 2026, 7:00 am ET

Read Time: 4 minutes

Louisiana Enacts Tough Anti-Sweepstakes Casino Laws

industry

Louisiana has officially intensified its fight against sweepstakes casinos after two new laws took effect this month. House Bill 883 (HB 883) and House Bill 53 (HB 53) expand the state's ability to combat unlicensed gambling operations through stronger criminal and civil enforcement.

The legislation targets dual-currency sweepstakes casinos, which have operated in a legal gray area across several states. Lawmakers argue these platforms offer casino-style games while avoiding the licensing, taxation, and consumer protections required of regulated operators.

The measures arrive as more states tighten oversight of unregulated gaming platforms. They also reinforce protections for the regulated Louisiana gambling market.

HB 883 and HB 53 Expand Louisiana's Gambling Enforcement Powers

Louisiana's latest legislation attacks illegal sweepstakes casinos from two different angles. HB 883 expands the state's prohibition on dual-currency sweepstakes platforms.

Meanwhile, HB 53 strengthens prosecutors' ability to pursue organized gambling enterprises under Louisiana's racketeering laws.

HB 883 broadens the ban on sweepstakes casinos

HB 883 updates Louisiana's definition of "gambling by computer" to expressly prohibit dual-currency sweepstakes casino models. These platforms typically sell virtual currency while awarding promotional coins that players can redeem for cash prizes.

Lawmakers determined that these businesses closely resemble traditional online casinos without complying with Louisiana's licensing and regulatory framework.

The law also reaches companies that knowingly facilitate illegal gambling operations. Payment processors, software providers, geolocation services, platform vendors, affiliate marketers, and other vendors may face enforcement if they support prohibited sweepstakes businesses.

HB 883 also increases penalties for illegal online gambling.

The legislation raises the maximum fine from $20,000 to $100,000 for violations involving illegal online gambling operations. Offenders may also face prison sentences of up to five years.

Supporters believe these stronger penalties will discourage operators from continuing to serve Louisiana residents after the law took effect.

HB 53 adds gambling offenses to Louisiana's racketeering law

HB 53 strengthens enforcement through Louisiana's Racketeering Act rather than creating a new enforcement agency.

The legislation adds offenses such as "gambling by computer" and "gambling by electronic sweepstakes device" to the list of predicate crimes under Louisiana Revised Statute 15:1352.

As a result, prosecutors can pursue illegal sweepstakes casino operators as organized criminal enterprises when the evidence supports racketeering charges.

This expanded authority allows the state to target not only individual violations but also broader criminal networks involved in unlawful gambling activities.

Racketeering convictions carry substantially harsher penalties than standard gambling offenses. This includes fines of up to $1 million and prison sentences of up to 50 years at hard labor if convicted under Louisiana's racketeering laws.

Together, HB 883 and HB 53 give Louisiana stronger legal tools to investigate, prosecute, and deter illegal sweepstakes operations.

Impact on Louisiana gambling

The new laws are expected to force many sweepstakes casinos to leave the state or block Louisiana players.

Industry observers also expect infrastructure providers to reassess their relationships with sweepstakes operators because of the expanded legal risks.

The legislation further protects licensed gaming businesses that comply with Louisiana's regulatory requirements. That includes regulated commercial and tribal casinos, while reinforcing confidence in the state's legal gaming market alongside licensed sportsbooks operating in regulated jurisdictions.

Louisiana Gaming Control Board Chair Christopher Hebert emphasized the state's position on illegal operators.

"Louisiana will not tolerate illegal operators who put our citizens at risk and undermine the fairness and integrity of our gaming industry."

His comments underscore the state's commitment to consumer protection and preserving the integrity of Louisiana's regulated gaming industry.

The tougher approach also aligns Louisiana with several other states that have recently increased enforcement against sweepstakes casinos.

SB 325 Seeks to Cultivate Sports Betting Integrity

Louisiana's implementation of HB 883 and HB 53 forms part of a broader effort to tighten oversight of the state's gaming industry.

That effort continued with the implementation of Senate Bill 325 (SB 325), which took effect on August 1. The law gives the LGCB expanded authority to establish an exclusion list for individuals who threaten athletes, coaches, officials, or others involved in sporting events because of sports betting.

SB 325 also allows the board to exclude individuals whose conduct threatens the integrity or safety of licensed gaming operations. Licensed US online sportsbooks operating in Louisiana must enforce those exclusions.

While HB 883 and HB 53 target illegal sweepstakes casinos and expand prosecutors' authority over organized gambling operations, SB 325 strengthens safeguards within the state's regulated sports betting market.

Together, the three laws demonstrate Louisiana's broader strategy to tighten Louisiana gambling regulations. Louisiana regulators continue strengthening consumer protections, and reinforce confidence in licensed gaming. 

Moreover, the latest enacted laws send a clear message: the Bayou State will continue cracking down on unlawful gambling activities, while supporting a fair and regulated gaming industry.

Jonathan Rodriguez
Jonathan Rodriguez

Jonathan is an avid basketball fan, and is often looking forward to the next upcoming NBA season when not checking players' stats during games. He also likes to keep his ears on the ground for the latest rumblings in the online casino industry.

This site contains commercial content. We may be compensated for the links provided on this page. The content on this page is for informational purposes only. Betting News makes no representation or warranty as to the accuracy of the information given or the outcome of any game or event.