With the governor of Louisiana prompting regulators to boot sweepstakes casinos out of his state, some customers may cross the state border to play Texas sweepstakes casinos.
Texas does not have an official ban on sweepstakes casino apps, which operate with a dual currency system. That means customers have no need to connect to a funding source like a credit card or bank account. Because of that, Texas sweepstakes operators say their platforms are not technically online gambling, which is illegal in Texas.
Louisiana gaming regulators target sweeps
This week, Louisiana Gov. Jeff Landry vetoed a bill that would have banned sweepstakes casinos. His administration came to the conclusion that the Louisiana Gaming Control Board (LGCB) can already issue exit orders against online sweepstakes casinos.
On June 17, LGCB Chairman Christopher B. Hebert said the agency issued several cease-and-desist orders against gaming companies in anticipation of Landry vetoing the ban.
“These actions send a clear message [that] Louisiana will not tolerate illegal operators who put our citizens at risk and undermine the fairness and integrity of our gaming industry. We will continue to use every enforcement tool available to protect the public and uphold the law.”
Hebert’s office did not say which sweepstakes casino operators received the orders. Some of the companies operating in the Bayou State include Chumba Casino, High5 Casino, and Pulsz Casino.
Several states eye bans
A few states, namely Montana and Connecticut, have banned sweepstakes by passing laws against them. Others, like Maryland, Michigan, and New York, have issued cease-and-desist letters to sweepstakes companies. Some operators have faced pressure to remove their apps.
A handful of states, including New Jersey, are considering bans via legislation.
Texas is known for staunchly opposing any expansion of gaming. The state does not allow commercial casinos or online casinos, nor does it allow sports betting. Texas lawmakers have also been stubborn in opposing sales of state lottery tickets online or via brokers to out-of-state players.
But, sweepstakes casinos, which exist in a “gray area” of the law, are currently operating in Texas. The state ranks second in both population and economy based on gross domestic product. Along with California, which ranks first in both of those categories, Texas is among the most prized states for supporters of gaming legalization.
Conservative politicians in the Texas Senate are serving as impediments to legal iGaming or online sports betting in Texas. Into that void rests sweepstakes casinos, which offer slots play, as well as table games like baccarat, roulette, and more.
