Louisiana Prepares for Sweeping Crackdown on Sweepstakes Sites

Louisiana is gearing up for a legislative showdown over sweepstakes websites as lawmakers prepare to tackle the growing presence of online platforms that operate in a legal gray area. House Bill 883, filed by Representative Laurie Schlegel, represents a bold attempt to expand the state’s enforcement powers and bring a new level of scrutiny to the companies that support these operations.

The proposed legislation aims to redefine how Louisiana treats “gambling by computer,” broadening the scope to include not only the operators of online games, contests, and lotteries but also the financial and technical infrastructure that keeps them running. Under the bill, sweepstakes sites that use dual-currency systems—where virtual coins can be exchanged for cash or cash equivalents—would be explicitly targeted. The language is designed to close loopholes that have allowed some operators to argue their platforms are legal promotional tools rather than gambling venues.

One of the most significant aspects of the bill is its focus on third-party facilitators. Financial transaction providers, such as payment processors, credit card companies, and money transmitters, would be held liable if they knowingly process payments for illegal sweepstakes. Similarly, platform providers—companies that host, store, or transmit content for these sites—could face penalties for their role in enabling the activity. This approach represents a major escalation in enforcement, as it extends liability beyond the operators themselves to the broader business ecosystem that supports them.

The penalties outlined in the bill are designed to be a strong deterrent. For operators, fines would increase dramatically from $20,000 to $100,000 per violation, while prison

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