Louisiana Governor Jeff Landry has vetoed the state’s proposed anti-sweepstakes casino bill in a shock move.

The Louisiana Senate passed Senate Bill SB181 with a unanimous 39-0 vote, and all that remained was the rubber stamp from the governor to pass the bill into law. Instead, Landry has torpedoed the legislation at the final hurdle, claiming that the state’s existing laws are strong enough, action is already underway to combat sweeps casinos, and the proposed laws are unnecessary.

Why Landry Vetoed the Bill

In an open letter to the Senate, Landry said that the Louisiana Gaming Control Board is already taking action to combat sweepstakes casinos. He cited a recent cease-and-desist letter to offshore operator Bovada as clear evidence of the regulators doing their job without additional help. He also highlighted overly broad wording in the bill that he believed could hurt their cause.

“The Board is already taking active steps to combat illegal gambling in Louisiana, especially against illegal offshore wagering and illegal online sweepstakes companies operating in Louisiana,” said the letter. “The Board, the Louisiana Attorney General’s Office, and the LSP Gaming Division are all monitoring this type of activity and will continue to issue additional cease-and-desist letters to similar illegal offshore wagering and illegal online sweepstakes companies that intentionally design their business models to circumvent Louisiana’s gaming laws and regulations.”

While some operators have blocked Louisiana, most of the big names are freely available to Louisiana residents. Chumba Casino, WOW Vegas, LuckyLand Slots, High 5 Casino, and more are all there. But Governor Landry’s latest words suggest cease-and-desist letters could be on the way before long.

More Bills Failing Than Passing

This is an unexpected move from the state governor and another example of anti-sweepstakes casino bills failing. Arkansas, Maryland, Florida, and Mississippi have all tabled legislation to ban sweepstakes casinos that ultimately failed. Louisiana joins that list, and it’s interesting that more bills have failed than passed this year.

Several states are still debating anti-sweeps legislation, and both Connecticut and Nevada have recently passed their own bills banning sweepstakes casinos. So, three states have passed legislation this year, after Montana banned them. Other states have taken the Louisiana approach and used existing laws to apply pressure to the social and sweeps casino sector.

New York has issued cease-and-desist letters to sweeps casinos, Michigan and Washington have made their feelings absolutely clear with a series of cease-and-desist letters and legal action, and Idaho has banned the use of Sweeps Coins.

Now, three more states have joined the list, and the rest of the year will be a critical time for one of the fastest-growing industry sectors as politicians prepare for next year’s legislative sessions.

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