The Louisiana Attorney General’s Office has issued a formal legal opinion declaring that sweepstakes casinos operating with dual-currency models are illegal gambling operations under state law. The move marks one of the strongest stances yet by any state attorney general in the growing effort to shut down unregulated online gaming platforms.
The opinion, delivered by Attorney General Liz Murrill, follows a coordinated enforcement effort that included the issuance of cease-and-desist letters to dozens of sweepstakes and offshore gambling sites. It signals that Louisiana will no longer tolerate online platforms offering casino-style games with prize redemptions based on virtual currency.
Legal Interpretation: Why Sweepstakes Are Being Targeted
At the center of the Attorney General’s legal opinion is the use of virtual currencies—most commonly Gold Coins for play and Sweeps Coins for prize redemption. While these platforms claim to operate legally under “no purchase necessary” rules, the AG’s office has rejected that argument, stating clearly that:
- Any game involving a stake, chance, and prize constitutes gambling under Louisiana law.
- The redemption of Sweeps Coins for cash or real-world prizes qualifies as illegal gambling, regardless of whether users made a direct purchase.
- Offering these services to Louisiana residents without a state-issued gambling license violates existing criminal statutes.
This ruling puts sweepstakes casino operations on the same legal footing as unlicensed real-money gambling, opening the door to civil and potentially criminal prosecution.
Enforcement Underway: Cease-and-Desist Letters Issued
Following the legal opinion, the Louisiana Gaming Control Board confirmed that it had already issued 40 cease-and-desist orders to operators engaging in illegal online gambling activity, including sweepstakes casinos and offshore sportsbooks.
These letters serve as formal notice that the operators are in violation of Louisiana’s gaming laws and must immediately cease operations within the state. The Attorney General’s office has stated that failure to comply may lead to felony charges, fines, and additional legal action.
Legislative Context: Vetoed Ban Bill and Regulatory Pushback
The enforcement announcement comes just days after Governor Jeff Landry vetoed a bill that would have explicitly banned sweepstakes casinos statewide. Landry argued that Louisiana already possessed sufficient legal authority to take action against unlicensed gambling.
The Attorney General’s legal declaration appears to validate that position. Rather than waiting for new legislation, the state is choosing to act under its existing statutory framework, using criminal gambling laws to shut down sweepstakes platforms immediately.
Consumer Risk and Legal Confusion
Louisiana’s aggressive position underscores the ongoing confusion many players face regarding the legality of sweepstakes casinos. These platforms often present themselves as “legal everywhere” and lean heavily on marketing language that emphasizes entertainment and free play.
However, the Attorney General’s ruling clarifies that prize redemption mechanisms, especially those tied to slot-style or chance-based gameplay, violate state gambling laws. Consumers who engage with these platforms in Louisiana may risk having accounts frozen, prize claims denied, or facing legal uncertainty.
Industry Impact and Response
Major sweepstakes operators, including platforms such as LuckyLand Slots, Chumba Casino, and Pulsz, are now expected to geo-block users in Louisiana or suspend services altogether. The ruling also sends a strong signal to payment processors, advertisers, and affiliates that facilitating sweepstakes gambling in Louisiana may carry legal exposure.
To date, no major operator has publicly challenged the cease-and-desist letters or the AG’s interpretation, further suggesting the legal groundwork for enforcement is solid.
Bottom Line
Louisiana has become a frontline state in the battle over sweepstakes gambling. With Attorney General Liz Murrill officially declaring dual-currency sweepstakes casinos illegal and the Gaming Control Board actively pursuing enforcement, the message is clear: unlicensed online gambling will not be tolerated.
While other states may still be considering legislation, Louisiana is acting now—and that may make it a model for others looking to curb the expansion of the sweepstakes casino model.