Chairman Hebert exclusive: Sweepstakes operators ‘undermine’ public confidence, US ‘window is closing’

Gaming America discussed the LGCB’s future initiatives to regulate sweepstakes casinos, as well as Chairman Hebert’s thoughts on the veto of Bill 181 by Governor Jeff Landry.

Following Governor Jeff Landry’s decision to veto Bill 181 which would have prohibited sweepstakes operations across the state, Louisiana Gaming Control Board (LGCB) Chairman Christopher Hebert spoke with Gaming America in an exclusive interview on the Board’s plans to continue enforcing proper regulation for such gaming types. 

“Sweepstakes casino operators pose a significant threat to Louisiana residents by bypassing the regulatory safeguards designed to protect consumers. These platforms operate outside of our state’s legal framework, which means there are no assurances of fair play, responsible gaming or payout integrity,” Chairman Hebert said. 

“Players have no recourse if they are defrauded, and personal data is often at risk. Additionally, these illegal operators undermine public confidence in the regulated market and divert critical tax revenue away from services that benefit Louisiana’s citizens.”

Governor Landry chose to veto Bill 181 on June 13 partly due to the enforcement action the LGCB is already undertaking against sweepstakes operators, having said, “The Board is already taking active steps to combat illegal gambling in Louisiana, especially against illegal offshore wagering and illegal online sweepstakes companies operating in Louisiana.

“The Board’s firm stance against such operations is aimed at protecting Louisiana residents from unregulated gambling activities that violate state laws.”

The decision still came as a surprise to many Louisiana lawmakers given the unwavering support Bill 181 had through numerous legislative sessions, although Chairman Hebert went on to state the Board “respect(s)” Governor Landry’s stance on the matter. 

“The veto of Senate Bill 181 does not change the fact that these sweepstakes casino operations remain outside the scope of legal gaming in Louisiana. The Board, in coordination with the Louisiana State Police and the Attorney General’s Office, continues to take enforcement action under existing law,” Chairman Hebert said. 

“There are still tools available—both regulatory and criminal—to target operators that are illegally offering games of chance. We are also committed to working with lawmakers to explore future legislative options that close any remaining loopholes.”

Good to know: Louisiana lawmakers chose to increase its tax rate on online gambling operators from 15% to 21.5% as the legislation awaits Governor Landry’s signature for approval 

Efforts to outlaw sweepstakes casinos have also been made in states such as New Jersey and California, as the New Jersey Senate officially passed Bill A5447 with a 34-5 vote on June 30 and now awaits final signature from Governor Phil Murphy.

The California Senate Governmental Organization committee chose to advance AB 831 on July 8 which now progresses to a scheduled hearing in front of the Senate Public Safety Committee set for July 15.

Chairman Hebert commented on the state’s efforts to regulate sweepstakes gambling, having said, “It’s clear that more states are recognizing the dangers posed by unregulated sweepstakes casinos and are taking action to address them. As enforcement efforts ramp up and legislative frameworks tighten, the window for these operators to do business in the US is closing.

“Their current model thrives on legal ambiguity and a lack of consumer protection. That’s not sustainable in the long term. If these operators want a future in the US, they will need to embrace regulation, transparency and accountability—just like any other legitimate gaming business. Until then, I would expect increasing scrutiny from regulators across the country.”

On June 17, the LGCB sent over 40 cease-and-desist letters to offshore gambling sites and sweepstakes operators, just four days after Landry’s decision to veto the anti-sweepstakes legislation. 

Chairman Hebert would also state the enforcement action taken by the LGCB is about protecting consumers and “ensuring a level playing field” for operators currently licensed in Louisiana. 

Kirk Geller

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