Louisiana Targets Sweepstakes Casinos with Expanded Racketeering Charges
Louisiana Moves to Tighten Laws on Sweepstakes Casinos through Racketeering Charges
Lawmakers in Louisiana are preparing to strengthen the state’s regulations on online sweepstakes casinos by proposing to classify certain gambling-related offenses as racketeering crimes. House Bill 53 aims to expand the scope of Louisiana’s racketeering laws to include activities associated with illegal gambling, increasing the potential legal consequences faced by operators.
House Bill 53 Proposes Severe Penalties for Sweepstakes Casino Violations
Introduced by Representative Bryan Fontenot ahead of the 2026 legislative session, the bill seeks to update existing statutes by adding specific gambling offenses to the list of racketeering acts, rather than imposing an outright ban on sweepstakes-style gaming. Offenses covered include computer-based gambling, operation of electronic sweepstakes devices, illegal betting, wagering on cockfights, and bribery of sports participants.
This legal change would empower prosecutors to pursue cases not only against individual sweepstakes platforms but also against the wider networks involved in these operations. Experts highlight that this approach could lead to more comprehensive conspiracy investigations and allow authorities to confiscate assets tied to unlawful gaming activities.
Racketeering convictions in Louisiana carry some of the state’s harshest penalties. Individuals found guilty may face fines up to $1 million and prison sentences of up to 50 years involving hard labor. Additionally, if the criminal activity involves sums exceeding $10,000, offenders could be ineligible for parole or probation for part of their term.
Increased Legal Scrutiny Forces Sweepstakes Casinos to Exit Louisiana
The proposed legislation follows a challenging period for regulation of sweepstakes casinos in Louisiana. In 2025, the state legislature attempted to ban the two-currency sweepstakes model commonly used by these platforms, but Governor Jeff Landry vetoed the measure, citing the sufficiency of existing laws and regulatory authorities.
Following the veto, enforcement actions intensified as the Louisiana Gaming Control Board partnered with the Attorney General’s office to issue numerous cease-and-desist orders against operators providing sweepstakes-style casino games to Louisiana residents. Consequently, many notable platforms have either ceased operations in the state or limited offerings to non-monetary games.
State officials maintain that gambling systems involving valuable stakes to win prizes violate Louisiana’s broad illegal betting laws. This stance was reinforced by a formal legal opinion issued by the Attorney General last year, confirming that sweepstakes casinos contravene multiple state statutes.
House Bill 53 represents a strategic shift in Louisiana’s approach, focusing on reinforcing existing criminal laws rather than introducing new prohibitions. By categorizing sweepstakes-related gambling offenses under racketeering statutes, lawmakers aim to deter operators and dismantle the criminal enterprises underpinning these illegal activities.
