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Traditional online gambling is illegal in Louisiana, with the exception of licensed and regulated sports wagering and off-track betting, as well as sweepstakes casinos. In 2025, though, a new casino regulation in Louisiana is being touted that can significantly change the outlook of the industry. Let's take a look at the upcoming reform and how it will impact the Louisiana gambling market.

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A Ban on Sweepstakes Casinos & Protection of Licensed Gambling

In June 2025, Louisiana was set to become the second US state to explicitly define and completely ban sweepstakes casinos in the state. The House of Representatives voted 99-0 for a ban, with the new proposed bill also passing in the Senate by a 39-0 vote at the end of April the same year.

Such a bill would ban online games, promotions, or leaderboards that contain a dual-currency system of payment that allows players in Louisiana to get real money prizes or equivalents. This new bill doesn’t only target sweepstakes casinos. Affiliates, software providers, and advertising would be banned from participating in black market and sweepstakes-related gaming.

Anyone who violates these sweepstakes casino restrictions will face severe fines that range up to $100,000 as well as a prison term of up to five years.

Senator Adam Bass noted that sweepstakes casinos are just unregulated and untaxed gambling that harms Louisiana casino industry. Rep. Debbie Villio stated that the aim of the Louisiana casino reform 2025 is to eliminate black market activity in Louisiana and to protect the domestic market and reputable casinos that play for real money, that not only promise but also deliver.

Sweeps Association Notes a Step Back For the Industry

The Social and Promotional Games Association was quick to address the public after the introduction of the proposed online gaming law Louisiana. It stated that it is disappointed by the House vote and notes that sweepstakes casinos operate under well-established guidelines, and millions of people are already engaging with them.

In the statement condemning the social casino legislation, the Association claims that the new bill mixes legal entertainment with illegal gambling, and it will be a threat to Louisiana’s economy. The statement finishes with a note that the bill is a step backwards for consumer choice and lawful innovation.

A Silver Lining for the Industry – Louisiana’s Governor Vetoes New Bill

Just 10 days after the new bill was sent to Governor Jeff Landry, his response was emphatic. He vetoed Louisiana gambling law changes, stating that they are unnecessary and very broad. His veto letter dates to June 12, and among other things, he notes that Louisiana already has legal tools to combat illegal gambling.

He claims that the new bill criminalises certain activities on the internet that are already illegal in Louisiana. There is Louisiana Gaming Control Board that has the regulatory authority and jurisdiction over all gambling activities, as the Louisiana Gaming Control Law stipulates.

Besides the Board, Landry pointed at the State Police Gaming Enforcement Division and the Attorney General's Office as additional agencies that handle Louisiana legal casinos and all enforcement efforts. The existing system is so far effective, with Landry noting several cease and desist orders against illegal international casinos.

The Governor was also quick to point out and warn that the new bill has vague language and could even interfere with unlicensed gaming crackdown activities already in place.

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Is There a Way Back for the Bill?

As a result of the Governor’s veto, sweepstakes casinos will probably remain operational in Louisiana. The legislature has the power and authority to cancel a veto by the Governor, but such a move is considered very unlikely.

An Online Gambling Study with No Effect So Far

In 2024, the Senate in Louisiana convened a study committee to start considering the benefits, drawbacks, and Louisiana gambling opportunities to legalise online gambling in the state.

Sen. Kirk Talbot filed the resolution, and he did so believing that the Senate would benefit from a comprehensive study on all positive and negative aspects of a legal online gambling landscape. He notes that online casino gaming is a big issue and the next big thing in the gambling world, so looking at it would be prudent.

In his resolution, Talbot pointed out a few reasons why the study could be beneficial:

  1. The American Gaming Association has released data showing that over $500 billion is wagered on illegal casinos. This means that over $13 million in gambling tax revenue Louisiana is lost.
  2. Illegal casinos that accept players from Louisiana take around $340 million in wagers every year without responsible gambling measures.
  3. Offshore casinos without a licence trick players by advertising their services in a way that lets users believe that they are legal.

Talbot notes that other states are already doing such studies and legalising online gambling, so he wants to hear from them what is good, bad, and all byproducts of a legal casino market. Before pushing the bill forward, Louisiana lawmakers could take a cue from how other countries handle gambling regulation. Even simple examples — like asking ‘Is counting cards illegal in Australia’ — can offer useful insight into how different regions maintain fair play and protect players. These global lessons could help shape a smarter, more balanced iGaming policy for the state.

A Legal Market Would Benefit Everyone

Unfortunately, so far, there has been zero progress on a new online gambling legislation, so it seems like Louisiana hasn’t progressed much, regardless of all the noise in the past couple of years. A new and legal iGaming market has some obvious benefits, which can stretch way beyond Louisiana casino tourism.

New job opportunities would arise, and more importantly, players would be protected with safe gambling platforms and advanced responsible gambling measures. Such a positive bill could also help with tax revenue in the state, as in 2025, a 45% added sales tax ends in Louisiana after eight years, which means that the state will need to look to fill a $500 million budget hole.

Venues such as Live Casino Hotel Louisiana offer an exciting gaming experience, but the industry moves at a fast pace towards online gambling. It seems like now is the perfect time for the state to grasp this opportunity, but the early indicators don’t show imminent activities in this field, as of now.

If you or anyone you know has a gambling problem, call 1-800-GAMBLER.

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