Louisiana Passes Dual-Currency Ban, Pushing Sweepstakes Casinos Toward Racketeering Risk

Louisiana has taken one of its strongest steps yet against sweepstakes casinos. On May 12, the Louisiana Senate unanimously passed House Bill 883 by a 35-0 vote, sending the bill to Governor Jeff Landry for signature or veto. The measure matters because it does more than ban dual-currency sweepstakes gaming on its own. It also locks that activity into the same “gambling by computer” category already tied to Louisiana’s racketeering law through House Bill 53.

HB 883 says that any internet-based game, contest, or promotion using a dual-currency payment system, where players can exchange currency for prizes, cash, cash equivalents, or chances to win them, and that simulates gambling, counts as “gambling by computer” under Louisiana law. In plain terms, that language directly targets the standard sweepstakes casino structure built around Gold Coins and Sweeps Coins.

The bill also reaches beyond operators. HB 883 targets platform providers and merchant payment processors that support sweepstakes casinos in Louisiana, while also increasing the maximum penalty for operating computer-based gambling games from a $20,000 fine to a $100,000 fine, with the prison term still reaching up to five years.

What the Bill Proposes

• HB 883 classifies certain dual-currency online gambling activity as gambling by computer.
• The definition covers internet or mobile-accessible games, contests, or promotions that use a dual-currency system and simulate gambling.
• The bill also targets platform providers and merchant payment processors supporting such activity in Louisiana.
• The maximum penalty for operating computer-based gambling games would rise to $100,000, while keeping the maximum prison term at five years.
• Because HB 53 already classifies gambling-by-computer offenses within Louisiana’s racketeering framework, HB 883 may now give the state the direct statutory language needed to connect sweepstakes casinos to that framework.

This is what makes the bill more significant than a standard sweepstakes ban. Louisiana had already argued that dual-currency sweepstakes casinos were illegal, but that argument depended on interpretation. HB 883 changes that by writing the classification directly into state law.

Why This Matters

HB 883 matters on its own because it directly outlaws the common dual-currency structure used by many sweepstakes casinos. But its larger impact comes from how it fits with HB 53, the earlier Louisiana bill that expanded racketeering laws to cover certain gambling-related crimes, including gambling by computer.

Until now, there was still a legal gap between Louisiana’s broad anti-racketeering framework and the specific sweepstakes casino model. HB 883 appears to fill that gap by stating directly that dual-currency online gambling that imitates casino play is gambling by computer. If that structure survives into law, sweepstakes operators in Louisiana may face more than a standard illegal gambling case. They could face exposure under a much tougher criminal framework.

A quick example makes the point clearer. If an online platform lets Louisiana users buy one type of virtual currency for entertainment-style play while using another redeemable currency for prize-linked casino-style games, Louisiana would now have clearer grounds to classify that setup as gambling by computer.

Because HB 53 already treats gambling-by-computer offenses as racketeering-related conduct, the legal risk would be much heavier than in a standard state ban model.

Growing Pressure on Sweepstakes Casinos

Louisiana’s move fits a wider 2026 trend, but the state’s approach is tougher than most. Many states have focused on cease-and-desist letters or direct prohibition language, like Minnesota. Louisiana is building a layered structure: one bill to define the conduct, another to raise the criminal consequences attached to it.

The state officials, including Governor Landry, Attorney General Liz Murrill, and gaming regulators, had already maintained that dual-currency sweepstakes platforms were illegal under existing law. Regulators also sent cease-and-desist notices to numerous operators in 2025. HB 883 suggests lawmakers wanted to make that position more explicit in statute rather than leave it to legal interpretation alone.

That broader pressure is also visible in other states, where lawmakers are targeting sweepstakes casinos through direct bans, vendor liability rules, or narrower state exits. Louisiana now stands out because it is pairing a ban-style definition with a much harder enforcement structure.

What Happens Next

The next step is Governor Landry’s decision. According to the law, Louisiana governors generally have 10 days to sign or veto a bill while the legislature is still in session, and the 2026 legislative session does not end until June 1. If the governor takes no action within the deadline, the bill becomes law automatically. HB 53 had already reached the governor’s desk on May 5.

That means the immediate uncertainty is not legislative anymore. It is executive. If Landry signs HB 883, or lets it become law without a veto, Louisiana would likely become one of the most aggressive states yet in how it targets dual-currency sweepstakes casinos.

References

Louisiana State Legislature