Sweepstakes Casinos Face Racketeering Law in Louisiana

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By lines

May 21, 2026

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Louisiana sweepstakes casino operators face the industry’s most severe legal challenge yet. House Bill 53 reached Gov. Jeff Landry’s desk around May 5, 2026. The bill adds dual-currency sweepstakes gaming to Louisiana’s racketeering statutes. Gov. Landry has not publicly signed or vetoed HB 53 in the two weeks since presentment.

What HB 53 and Illinois SB 1705 Mean for Operators and Players

Louisiana HB 53 passed the House 86-11 on March 30, 2026. The Senate approved HB 53 by a 27-9 vote on April 27, 2026. The bill amends the Louisiana Racketeering Act to add dual-currency gaming as a predicate offense. Covers.com and SBC Americas confirm the bill carries fines up to $1 million per conviction. Prison sentences extend to 50 years of hard labor. A five-year mandatory minimum applies without parole if the racketeering value exceeds $10,000.

Illinois is running a parallel enforcement track. The Illinois Gaming Board sent 65 cease-and-desist orders to sweepstakes operators on February 5, 2026. BrightSideOfNews confirmed just two of the 65 targeted operators restricted Illinois access. Senate Bill 1705, introduced by Sen. Bill Cunningham, is pending a vote before the Illinois legislature adjourns. SB 1705 would classify sweepstakes casino operations as an illegal gambling device. GamblingInsider reports the offense would carry a Class 4 felony charge with up to three years in prison.

Named operators face exposure on both fronts. The Illinois cease-and-desist letters reached VGW Holdings, parent company of Chumba Casino, LuckyLand Slots, and Global Poker. Other named operators include Fliff, Stake.us, Pulsz, McLuck Casino, and WOW Vegas. VGW Holdings and WOW Vegas each received orders from the Illinois Gaming Board on February 5, 2026. ARB Interactive CEO Patrick Fechtmeyer told Gambling Insider that sweepstakes operators have chosen state-by-state negotiation over federal litigation, per BettorsInsider.

Players in Louisiana and Illinois face immediate account risk. Players in Louisiana with active Sweeps Coin balances should check platform terms now. Players in Illinois on platforms that stayed active after the February cease-and-desist orders face potential access disruptions. Any platform adjusting operations in Louisiana or Illinois will notify active account holders directly. Players should contact customer support to confirm redemption windows before state access changes take effect.