Louisiana lawmakers are pressing ahead with a push to rein in illegal online sweepstakes-style gaming, after the state House overwhelmingly backed House Bill 883 and sent it over to the Senate this week.

Rep. Laurie Schlegel’s proposal cleared the chamber on April 14 with virtually no opposition, winning final votes of 99-0 and 98-0. By April 15, the Senate had taken it up, giving it a first reading and placing it on the calendar for debate.

The language in the bill itself spells out that, “Gambling by computer is the intentional conducting, or directly assisting in the conducting as a business of any game, contest, lottery, or contrivance whereby a person risks the loss of anything of value in order to realize a profit when accessing the Internet.”

Lawmakers are also zeroing in on newer digital formats that blur the line between gaming and gambling. The proposal explicitly includes platforms that use so-called dual-currency systems, where users can exchange virtual credits for prizes or cash-like rewards while mimicking traditional gambling mechanics.

Louisiana sweepstakes bill introduces new penalties and enforcement powers

The legislation sharply raises the stakes for those involved. Casual users could face relatively minor penalties, including fines up to $500 or as much as six months behind bars.

For operators and those supporting these systems, the consequences state that anyone tied to building or running such platforms could face fines up to $100,000 and prison terms of up to five years if the bill becomes law.

The measure also reaches beyond operators to the infrastructure that keeps these sites running. The bill adds, “No merchant payment processor shall knowingly accept or process any financial transaction” tied to unlawful activity.

Online platforms face similar restrictions if they knowingly host or transmit gambling-related content. Each individual wager or promotional action could be treated as a separate violation, potentially multiplying penalties.

Another major shift would give the state attorney general more direct authority to intervene. The office could issue cease-and-desist orders, giving companies 10 days to shut down prohibited activity. If they fail to comply, the state could pursue court orders to block websites, freeze accounts, or cut off financial flows. Attorney General Liz Murrill had previously issued a legal opinion declaring that online sweepstakes casinos constitute illegal gambling.

Lawmakers have been debating multiple approaches to tackle illegal gambling in the state, including measures targeting the companies that fund and promote these platforms. In one recent case, a separate crackdown bill came close to becoming law before being halted, highlighting divisions between regulators, lawmakers, and the governor’s office.

Even so, momentum appears to be building for stricter oversight. Supporters argue the state needs stronger tools to keep pace with evolving online gambling models and the networks behind them.

The current proposal suggests that licensed casinos, regulated sports betting, and approved fantasy sports operations would remain untouched, as long as they follow existing rules.

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