Louisiana Attorney General says sweepstakes casinos are illegal
Louisiana’s chief legal officer says online sweepstakes casinos should be considered illegal in the state.
The state’s Attorney General Liz Murrill issued a formal legal opinion on July 2 in which she stated that online sweepstakes casinos that offer dual-currency casino-style games such as slots, roulette, and blackjack are in violation of state law and will face enforcement actions.
“Following a review of applicable Louisiana statutes and legal precedent, it is the opinion of this office that online businesses offering casino-style games — purporting to be sweepstakes or social gaming platforms — are operating in violation of Louisiana law,” Murrill wrote. “These activities constitute illegal gambling and illegal gambling by computer under multiple provisions.”
Murrill was responding to Louisiana Sen. Rick Edmonds’ request for an opinion from the AG on the gaming vertical. The AG noted that in Edmonds’ correspondence, he referenced Senate Bill 181, the legislation to ban casino-style sweeps that was approved by the legislature earlier this year.
When Louisiana Gov. Jeff Landry vetoed that bill two weeks ago, he suggested it was unnecessary because the AG’s office and the Louisiana Gaming Control Board (LGCB) that it houses already had the tools to shut down unauthorized operators.
Within days of Landry’s veto, Murrill assisted the LGCB in issuing numerous cease-and-desist notices to online sweepstakes casinos and social casinos.
‘True purpose’ is gambling
In her opinion, Murrill highlighted several aspects of online sweepstakes casinos that she said warranted her judgment. She pointed to the fact that several courts have ruled on online sweeps “by outlining elements that suggest the online sites’ true purpose is gambling.”
“These indicators include a casino-like environment, the perpetual duration of the games, the high payout percentages of online casinos, the restrictions on the consumers’ ability to redeem prizes, and customers valuing ‘sweepstakes entries’ more than the produt, usually by immediately replenishing sweeps coin balances to continuing playing games after running through unsuccessful play,” she wrote.
She also noted that online sweepstakes’ dual-currency system often results in users purchasing ‘Gold Coins’ and receiving ‘Sweeps Coins’ as a bonus in the same dollar amount as the purchase. Those “bonus” coins, she asserted, can then be used to play games or to be redeemed for cash or other prizes. That, she opined, falls within the state’s definition of illegal gambling and gambling by computer.
She added that sweeps casinos are not regulated and do not offer player protection safeguards such as adequate age verification, geolocation, or know your customer protocols.
Sweeps = Starbucks? Wake up and smell the coffee
One point of defence for sweeps operators and groups like the Social and Promotional Games Association (SPGA) has been that criminalizing online sweepstakes casinos threatens the status of promotions and loyalty programs offered by retailers and other businesses.
Murrill dismissed this argument, stressing that “persistent, predatory and profit-driven” casino-style sweeps platforms bear no resemblance to those promotions.
“Legitimate sweepstakes and rewards programs — like those run by e.g. McDonald’s or Starbucks — operate with clear rules, offer entries without purchase, and offer non-monetary or time-limited promotions designed to market a good or service,” Murrill wrote.
“Illegal ‘sweepstakes casinos,’ on the other hand, are not offered in furtherance of a legitimate business of goods, operate persistently, target vulnerable populations, require purchase to engage, and allow conversion of winnings into cash.
“These operations are promoted year-round, are not in promotion of some legitimate business operation, feature jackpots and wagering elements, pay tables, and profit from user participation by selling tokens or credits.”
‘Irony abounds,’ says SPGA
SBC Americas reached out to both the SPGA and the Social Gaming Leadership Alliance (SGLA) for comment.
“Irony abounds as we prepare to celebrate Independence Day, while Attorney General Liz Murrill’s legal opinion threatens the freedom and independence of adults to enjoy social casino entertainment games across Louisiana,” the SPGA told SBC Americas. “The Attorney General has mischaracterized the fundamental nature of these games and undermines the principles of free enterprise that built our nation.”
The association also stressed that its operator members “implement robust age verification systems, maintain detailed terms of service and operate with transparency regarding their dual-currency models.” SPGA members have tried many times to engage in a dialogue with Louisiana lawmakers to introduce state laws to eliminate bad actors, added the group.
That’s just, like, your opinion, man
Murrill’s opinion is just that: an opinion. It is not legislation and does not ban online sweepstakes outright in the state like SB 181 would have done.
What it is, though, is another big indication of the fact that Louisiana’s AG and other authorities are prepared to come down hard on sweepstakes casinos, even if the governor didn’t sign a ban into law.
Murrill added that although SB 181 “would have been a valuable tool in memorializing the illegality, strengthening enforcement actions, and holding entities accountable,” her office, the LGCB and the state are nonetheless well-equipped to utilize civil enforcement powers to shut down sweeps, and are utilizing those powers as we speak.
https://sbcamericas.com/2025/07/03/louisiana-ag-sweepstakes-casinos/