Louisiana Turns Up the Heat on Sweepstakes Casinos With Racketeering Threat

As of Aug. 1, 2026, sweepstakes casinos in Louisiana constitute illegal gambling under state law. The legal change comes through the enrollment of House Bill 883, which expands the definition of “gambling by computer” in the Bayou State.

After Louisiana Gov. Jeff Landry (R) vetoed a sweepstakes casino ban in June 2025, arguing it was “overly broad,” lawmakers in Baton Rouge revised the legislation to address his concerns. The effort resulted in HB 883, which the governor agreed took a more targeted and refined approach to regulating the controversial online casino games.

Online gambling, aside from mobile sports betting, is illegal in Louisiana. HB883 clarifies that such banned activity includes any game, contest, or promotion available on the internet simulating “any form of gambling” that uses a dual-currency system of payment that allows a player to exchange a currency for any prize, award, cash, or cash equivalent.

Sweepstakes Exodus

Landry’s 2025 veto halted the state from explicitly banning dual-currency sweepstakes casinos in Louisiana, but most major operators saw the writing on the wall. Landry reasoned that the sweeps bill last year was overkill, saying that the Louisiana Gaming Control Board (LGCB) was already taking measures to combat illegal gambling.

In June 2025, the LGCB sent cease-and-desist orders to dozens of online sweepstakes casinos. Many, including Stake, Chumba, Modo, LuckyLand, and Global Poker, heeded the directive.

Several smaller sweepstakes brands, however, continued to make their dual-currency gaming platforms accessible. Now, with companion legislation to HB883, those operators face serious legal repercussions.

The Louisiana State Legislature passed HB883 with a companion measure, House Bill 53. That bill addresses penalties related to gambling crimes.

Effective Aug. 1, 2026, a person who facilitates dual-currency gambling by computer commits a racketeering offense. In Louisiana, racketeering offenses carry severe felony penalties, including imprisonment of up to 50 years.

Louisiana will not tolerate illegal operators who put our citizens at risk and undermine the fairness and integrity of our gaming industry.”

LGCB Chair Christopher Hebert

“We will continue to use every enforcement tool available to protect the public and uphold the law,” Hebert said.

Louisiana Prisons

Racketeering charges in Louisiana are deterrents to bad actors, as the state is home to some of the harshest prisons in the country.

Louisiana is one of only seven states that continues to use hard labor and compulsory prison work in its state and federal penitentiaries. The Louisiana State Penitentiary, widely known as Angola, is where the literal “farm line” involves inmates hand-picking crops in brutal heat.

Known as the “Alcatraz of the South,” Angola is the largest maximum-security prison in the U.S. Spanning 18,000 acres, the vast majority of the 6,000 adult male population is serving a life sentence without the possibility of parole.