Proposed by Republican state senator Adam Bass, Senate Bill 181 would impose a ban on the controversial social gaming vertical and classify it as “illegal gambling”.

It follows a wave of bills looking to crackdown on sweepstake casinos being tabled throughout the US in 2025, including in New York, New Jersey, Mississippi and Maryland.

Under Louisiana’s bill, breaches would be punished with fines ranging between $10,000 and $100,000 and would be considered a violation of the state’s deceptive and unfair trade practice law.

Alongside operators themselves, the law would also bar suppliers such as geolocation providers or gaming platform providers, as well as affiliate marketing sites, from working with sweepstake casinos.

In response, the sweepstakes industry trade body issued a statement slamming the proposed law.

The statement read: “The Social and Promotional Games Association (SPGA) vehemently opposes Louisiana Senate Bill 181 (SB181), introduced by Senator Adam Bass, which recklessly misclassifies legitimate sweepstakes as illegal gambling.

“This misguided legislation endangers lawful businesses and sends a chilling message to investors, jeopardising Louisiana’s burgeoning tech sector.

“For decades, companies — from fast-food chains to app developers — have utilised sweepstakes as legal promotional tools. SB181’s failure to distinguish between these lawful activities and gambling not only threatens these businesses but also undermines established legal frameworks that support innovation and economic growth.”

SPGA says Louisiana bill threatens AI growth

The association claimed the bill’s “overly broad definitions” could unintentionally criminalise loyalty and rewards programs run by major commercial brands.

It also argued sweepstake casinos do not compete with real money casinos, and suggested the bill could dampen venture capital investment, thereby threatening the development of emerging technologies “including artificial intelligence.”

The trade body added: “Alarmingly, SB181 has advanced without meaningful consultation with industry stakeholders. SPGA urges Louisiana legislators to halt this ill-conceived bill immediately and engage with experts to craft policies that protect consumers without dismantling legitimate businesses or deterring technological advancement.

“SPGA calls on Louisiana lawmakers to reject SB181 before it inflicts lasting damage on the state’s economy and reputation as a hub for innovation.”