Louisiana sweepstakes bill expands enforcement powers statewide

"The updated language would cover anyone who runs or helps run an online game, contest or lottery where players risk something of value for a shot at winning money or prizes. The bill specifically calls out sweepstakes platforms that use so-called "dual-currency systems," where virtual coins can be redeemed for cash or cash equivalents if the game mirrors traditional casino-style play."

"The proposal also spells out who else could be on the hook, including financial transaction providers such as payment processors, credit card companies and money transmitters. It also names platform providers, meaning companies that host, store or transmit website content tied to sweepstakes operations."

"If passed, the legislation would significantly raise the stakes for anyone offering illegal sweepstakes as a business. The maximum fine would jump from $20,000 to $100,000, while the possible prison sentence would remain capped at five years."

Louisiana lawmakers are advancing House Bill 883 to combat illegal sweepstakes operations by significantly expanding the state's enforcement authority. The bill redefines gambling-by-computer to encompass anyone operating online games, contests, or lotteries where players risk value for prizes, specifically targeting dual-currency systems that convert virtual coins to cash. The legislation extends liability to financial transaction providers, payment processors, and platform hosting companies that facilitate sweepstakes operations. Penalties would increase substantially, with maximum fines rising from $20,000 to $100,000 and prison sentences remaining at five years. Accomplices face up to $20,000 in fines and five years imprisonment, with doubled penalties when minors are involved. Each wager and promotion counts as separate violations, and courts must order forfeiture of profits.

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