SPGA Raises Concerns over Louisiana Sweepstakes Ban Bill
The Social and Promotional Games Association (SPGA) has expressed strong opposition to a bill recently introduced in the Louisiana Senate that seeks to criminalize sweepstakes.
LISTEN TO THIS ARTICLE:Introduced by Senator Adam Brass, Bill SB181 proposes banning sweepstakes gambling, including casino-style games, lottery-like games, and sports betting. It would also crack down on companies involved with illegal online gaming sites, including geolocation providers, gaming manufacturers, suppliers, platform providers, promoters, and media affiliates.
According to the SPGA, the legislation "recklessly misclassified legitimate sweepstakes as illegal gambling." The association contends that SB181 goes against research findings that revealed that social sweepstakes and real-money casinos cater to different consumer needs and, therefore, do not compete directly.
Additionally, the association argues that social sweepstakes are different from gambling, as players can participate without spending money, and games are often free to play.
The SPGA noted that the bill passed in the Senate without stakeholder consultation and warned of significant impacts on the gaming industry. A key concern is that the legislation could stifle tech investment in Louisiana, undermining established legal frameworks designed to support economic growth through innovation.
Furthermore, the SPGA cautions that the bill's sweeping categorizations may criminalize loyalty rewards programs, such as sweepstakes-style promotions commonly offered by hotel and hospitality brands across the country.
The association urges Louisiana legislators to consider the bill's implications and halt its advancement.
More Business News
US Lawmakers Launch Attack against Sweepstakes
Louisiana is only one in a growing list of states actively pushing to ban sweepstakes gaming. Last month, Maryland's Senate passed SB 860, a measure that bans online sweepstakes games and targets associated businesses like media affiliates, payment processors, and geolocation providers.
In New York, Senator Addabo's bill S5935, which aims to ban sweepstakes gambling sites in the Empire State, has advanced from the committee to the Senate floor.
Nevada’s SB256 seeks to increase penalties for illegal online gambling operators, including sweepstakes, while a bill in Connecticut, SB1235, would make operating illegal sweepstakes gambling a Class D felony.
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