Operators warned
The Louisiana Gaming Control Board has issued 40 cease-and-desist letters to several gambling operators, including sweepstakes and offshore betting sites.
both sweepstakes and offshore operators had been targeted
The specific sites issued letters have not been named, but Governor Jeff Landry stated that both sweepstakes and offshore operators had been targeted.
There are estimated to be around 90 sweepstakes casinos operating in Louisiana, and Landry also stated that the remaining operators would be issued similar letters in due course.
Sweepstakes confusion
Sweepstake casinos exist in a legal gray area throughout much of the United States, with the law allowing them to operate as tax-free casinos while claiming they are legally something else. However, many states have recently begun to crack down on their activities.
The move comes after their status in Louisiana was thrown into doubt when Landry vetoed a bill which would have outright banned them from operating in the state. The veto was initially welcomed by the Social Gaming Leadership Alliance (SGLA), a lobbying group for sweepstakes operators,
In a statement, the SGLA stated that the veto was “an opportunity to pursue a sensible solution to allow Louisiana residents to continue playing online social games, explore revenue streams for the state and create a licensing and regulatory environment which applies the highest standards of player protections and responsible social gaming.”
Landry stated that the Gaming Control Board was already capable of tackling illegal gambling operators
However, rather than this being a sign of tolerating their presence, Landry stated that the Gaming Control Board was already capable of tackling illegal gambling operators, and thus there was no need for the law. The latest moves now appear to confirm that existing laws will be used for a crackdown.
Position clarified
Christopher B. Hebert, Chairman of the Louisiana Gaming Control Board, said: “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.”
Echoing his comments and further clarifying his position, Landry stated: “The Board, the Louisiana Attorney General’s Office, and the LSP Gaming Division are all monitoring this type of activity.”
“We will continue to issue additional cease-and-desist letters to similar illegal offshore wagering and illegal online sweepstakes companies that intentionally design their business models to circumvent Louisiana gaming laws and regulations.”
