Editor
Louisiana legislators introduced a new bill late last week that would elevate a number of gambling crimes to predicate offenses.
If HB53 passes, sweepstakes gambling, sports bribery, gambling in public, and several other transgressions could all be used in racketeering cases, which have much stiffer penalties for perpetrators.
Louisiana has been on a years-long crusade against sweepstakes casinos (social casinos that use a dual-currency model). The effort culminated with lawmakers sending 42 cease-and-desist orders to sweepstakes operators last summer. Louisiana Attorney General Liz Murrill also issued a legal opinion that sweepstakes casinos were operating as illegal businesses.
Many popular sweepstakes casinos have left the market, including heavy hitters VGW and WOW Vegas, which were also sued by the Louisiana Department of Revenue over unpaid taxes. Even the poker sites that operate on a sweepstakes model, Global Poker and ClubWPT Gold, have decided to leave the state.
A handful of sweepstakes casinos still operate in the state, but that number is dwindling fast.
Bribing Athletes, Operating Sweepstakes Could Be Used in Racketeering Cases
It’s been nearly six months since legislators attempted to ban sweepstakes casinos in Louisiana, and the new bill seems to be an effort to crank up the pressure on the gray market sites.
Anyone convicted of racketeering is subject to some of the most severe punishments in Louisiana, including a fine of up to $1 million and up to 50 years in prison.
Here’s the exact language of the bill:
To enact R.S. 15:1352(A)(89) through (95), relative to gambling crimes; to add certain gambling crimes as predicate offenses for racketeering activity; and to provide for related matters.
Each individual crime doesn’t necessarily constitute racketeering, but each can be used as a predicate offense, which can be combined to form a racketeering case.
Here’s a look at the language in the bill describing the activities that would qualify as predicate offenses:
- Gambling
- Gambling in public
- Gambling by computer
- Gambling or wagering at cockfights
- Gambling by electronic sweepstakes device
- Unlawful wagering; prohibited player
- Bribery of sports participants
Legislators in Louisiana passed SB181 last summer to outright ban sweepstakes casinos, but Gov. Jeff Landry vetoed the bill, claiming it was redundant because the Louisiana Gaming Control Board already has the authority to regulate sweepstakes activity.
The new bill, HB53, appears to be another tactic that legislators are using to dissuade sweeps operators from doing business in the state.
Sweepstakes Casinos vs. Sweepstakes Cafe
Louisiana is in an unusual situation in which it must contend with two types of sweepstakes gambling.
In the mid-2000s, a form of gambling known as a “sweepstakes parlor” became popular in the state. The concept of sweepstakes parlors was that customers would purchase items, such as prepaid phone or internet cards, and receive complimentary entries on terminals similar to slot or video poker machines, where it was possible to win prizes.
Louisiana lawmakers enacted R.S. 14:90.7 in 2010, banning such parlors.
More recently, online dual currency sweepstakes casinos (or social casinos) have become popular. There’s a clear throughline between the two forms of quasi-gambling: customers on sweepstakes casinos purchase tokens (often Gold Coins) that have no cash value but receive a complimentary currency that can be redeemed for cash prizes.
Language in the R.S. 14:90.7 act has been stretched to include online sweepstakes casinos over the years.
Meanwhile, the new bill, HB53, will head back to the floor for second and third readings when the Louisiana Legislature reconvenes on March 9, 2026. The next step will be assigning it to a committee.
