Louisiana Regulator Issues Cease-and-Desist Orders to 40 Operators

The Louisiana Gaming Control Board (LGCB) announced that it has taken decisive enforcement action against unlicensed online betting platforms and sweepstakes casinos. This action comes amid continued efforts to restrict the rapid growth of the sweepstakes gaming sector.

Louisiana Faces Growing Pressure from Unlicensed Operators

The board, which is tasked with exercising regulatory control over gaming in the Pelican State, has an important role in preventing unlicensed companies from targeting the local market. As sweepstakes operators face increased pushback in the US, the LGCB has become the latest regulator to oppose the industry’s rapid growth, while still pushing back against traditional unlicensed casinos too.

Sweepstakes, for context, are a form of gray-market gaming that uses a dual-currency system to avoid being legally classified as gambling. While sweepstakes can be played for free, regulated industry stakeholders have argued that their products constitute illegal online gambling and should be treated as such.

As a result, both tribal and commercial operators, as well as state agencies, have sought to limit the influence of sweepstakes companies. Lawmakers, on the other hand, have promoted bills that criminalize the offering of sweepstakes games, although such measures have so far had mixed results.

Louisiana Ordered 40 Operators to Leave

In Louisiana, the LGCB teamed up with the state’s Attorney General’s Office and the Gaming Enforcement Division of the Louisiana State Police to prevent unlicensed gaming and shutter illegal operations.

Recent regulatory action against unlicensed companies saw the LGCB issue a cease-and-desist order against online gambling giant Bovada, ordering it to stop doing business in the state.

Now, the LGCB announced that it has sent similar letters to some 40 additional wagering platforms and sweepstakes casinos.

The LGCB said that all of the platforms in question had been found to circumvent Louisiana’s gaming laws and regulations.

Louisiana Stands Strong in the Face of the Black Market

Christopher B. Herbert, chair of the LGCB, commented on the matter, saying that the latest regulatory action highlights the board’s commitment to protecting the local market and stopping illicit operations from taking place.

These actions send a clear message: Louisiana will not tolerate illegal operators who put our citizens at risk and undermine the fairness and integrity of our gaming industry. We will continue to use every enforcement tool available to protect the public and uphold the law.

Christopher B. Herbert, chair, LGCB

Gov. Landry Rejected Anti-Sweepstakes Bill

Louisiana lawmakers had previously introduced a bill seeking to ban sweepstakes. Although the measure secured approval from both the House and Senate, it was ultimately struck down by Governor Jeff Landry.

Landry justified the decision with the fact that a variety of other anti-sweepstakes measures are already being taken or developed and argued that a separate legal measure would have only complicated things.