Louisiana Senator Proposes Bill to Tighten iGaming Laws

A key development that might significantly reshape Louisiana’s gambling landscape, Senator Adam Bass introduced Senate Bill 181 (SB181) on April 4, 2025. The bill seeks to narrow the legal definition of sweepstakes games by excluding social casinos that employ a dual-currency business model, effectively targeting the growing market of online sweepstakes and casino-style games. At the same time, SB181 aims to impose tougher restrictions on gambling operators and suppliers, particularly those with ties to international markets deemed illegal by the state.

The bill's provisions have raised concerns about potential disruptions to a number of gambling companies currently operating in Louisiana, with experts suggesting that its sweeping language could have unintended consequences for businesses and players alike. However, as the bill moves through the legislative process, it is expected to undergo revisions to clarify its intent and address some of these concerns.

A Focus on Dual-Currency Social Casinos

One of the most notable elements of SB181 is its explicit targeting of the “dual-currency system” used by some social casinos. These platforms allow players to purchase virtual currencies that can be used to play casino-style games, and in some cases, offer prizes or rewards in exchange for a combination of virtual and real money. Under SB181, games that use this dual-currency model would be considered illegal gambling, as they “simulate any form of gambling” and offer the chance to win cash or prizes.

The bill's language effectively targets the growing trend of online “sweeps casinos” that have become increasingly popular in Louisiana. By narrowing the legal definition of sweepstakes to exclude these platforms, Bass’ bill could block access to a significant segment of the online gaming market. While supporters of the bill argue that this move is necessary to protect players from the risks associated with unregulated gambling, critics contend that it could have a detrimental effect on both businesses and consumers who enjoy these games in the state.
Implications for Gambling Vendors and Suppliers

Another crucial aspect of SB181 is its proposed expansion of regulatory oversight for gambling vendors and suppliers. Under the new provisions, any gambling company that provides support for illegal gambling activities, including online sweepstakes, could face severe consequences, including the revocation of licenses by the

The bill specifically targets companies operating in international markets that may violate Louisiana’s gambling laws, including vendors that may not directly operate in Louisiana but are affiliated with foreign markets deemed illegal by the state. For example, vendors who serve licensed Louisiana casinos but operate in countries where gambling is either restricted or outlawed could face penalties under SB181, even if their activities are legal abroad.

In an industry where global operations are the norm, SB181’s language has raised alarm among manufacturers and suppliers who may now face new compliance challenges. The bill mandates that companies demonstrate their adherence to both Louisiana’s laws and international standards, with the Louisiana Gaming Board holding the power to revoke licenses for those found to be facilitating illegal gambling activities.

This provision may be a response to a 2021 complaint against Evolution Gaming, which was accused of knowingly allowing its games to be played in countries such as Iran and Syria, where gambling is prohibited. However, the broad language in the bill could potentially ensnare companies in countries with more complex or evolving regulatory environments.

Unintended Consequences and Clarification

Despite the bill’s clear intentions to restrict illegal gambling and protect consumers, certain provisions in SB181 could have unintended consequences for both vendors and operators. One particularly contentious section of the bill holds that companies operating in a country or territory that prohibits either land-based or online gambling may be disqualified from holding a Louisiana gaming license.

This language has raised concerns for companies in markets like Sweden, which recently moved to outlaw land-based gambling while still permitting online casino operations. If the bill passes in its current form, such companies could find themselves in violation of Louisiana’s new regulations, despite their legal operations in their home countries.

While this section of the bill appears overly broad, it is likely that amendments will be made to address these ambiguities. Legislative hearings in the coming months will provide an opportunity for stakeholders to voice their concerns and for lawmakers to clarify the bill’s intent before it progresses further.

The introduction of SB181 comes at a time of significant change for Louisiana’s gambling industry. On April 3, 2025, the Louisiana Supreme Court upheld a lower court ruling that a 2021 law authorizing historical horse racing (HHR) machines at state racetracks violated the state constitution. The ruling found that expanding gambling in Louisiana requires voter approval on a parish-by-parish basis, a decision that could have far-reaching implications for venues like Delta Downs and Evangeline Downs.

This decision further underscores the shifting nature of gambling regulation in the state, as lawmakers grapple with how to manage new forms of gambling while protecting the interests of established operators. Companies like Churchill Downs, which operates Fair Grounds Race Course in New Orleans, are now exploring the possibility of pursuing local referendums in affected parishes to allow for the continued operation of HHR machines.

 

A literal reading of the bill’s draft language suggests it could have a significant adverse effect on the operations of many companies currently serving Louisianans.

The Road Ahead

As SB181 moves through the legislative process, there is no doubt that it will face intense scrutiny and potential revisions. While Bass’ bill reflects a growing concern over illegal gambling and the regulation of emerging online platforms, its broad language could have significant ramifications for both local businesses and the international gaming industry. Stakeholders will need to work closely with lawmakers to ensure that the bill's provisions are clear, fair, and conducive to a thriving gambling market in Louisiana.

In the meantime, Louisiana’s gambling sector remains in flux, with operators and vendors watching closely for further developments. As the legislative session continues, all eyes will be on Baton Rouge as lawmakers determine the future direction of gambling in the Pelican State.