Louisiana Declares Sweepstakes Casinos Illegal

Louisiana Attorney General Liz Murrill has issues a formal legal opinion that declares the entire sweepstakes casino vertical illegal under state law.

The statement follows a request from Senator Rick Edmonds, who asked for clarity after Governor Jeff Landry vetoed Senate Bill 181, a proposed ban on sweeps platforms. It also trails in the wake of a huge number of cease-and-desist letters that sweepstakes casinos have received in the past week.

Landry’s veto came with a twist. He claimed sweepstakes casinos were already illegal, and that passing new laws would hinder their existing efforts to combat illegal gambling. Now it seems there was a plan in place all along, and the state governors have sent a strong message to sweeps casino operators to leave Louisiana immediately.

Murrill’s letter breaks down the law in detail, referencing multiple statutes that sweepstakes casinos are violating, including La. R.S. 14:90 and La. R.S. 14:90.3, which prohibit illegal gambling and gambling by computer.

No Legal Loophole for Virtual Currency

Operators like Chumba, Stake.us, and Fortune Coins rely on a dual-currency system—Gold Coins for free play and Sweeps Coins that can be redeemed for cash prizes. That has helped sweepstakes casinos stay out of the real money gambling regulations, but Murrill isn’t buying it.

“An attempt to alter or disguise consideration does not circumvent illegality,” they said.

The letter also calls out how these sites don’t meet the legal standards of a sweepstakes under Louisiana law. Winning must be disclosed through printed lists, scratch-offs, or other regulated means—not by spinning a virtual slot.

No Room for Wiggle

In case there was any doubt, Murrill adds that many sweeps platforms fail to geolocate players, verify age, or implement proper KYC checks. She also reminds stakeholders that civil penalties, injunctions, and asset seizures are all on the table. Her office can target not just the operators, but also affiliates and marketers who promote them.

This comes on the heels of the Louisiana Gaming Control Board’s cease and desist campaign against dozens of operators and follows similar moves by New York AG Letitia James.

With this legal opinion on record, Louisiana now ranks among the toughest states for sweepstakes casinos. We expect the operators to simply comply and withdraw from the state with immediate effect.