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Good news for sweepstakes casinos in Oklahoma as governor vetoes prohibition bill
Sites get some bad news in Louisiana as operators may soon be charged with racketeering though that state's governor is yet to act on legislation that landed on his desk
Oklahoma Gov. Kevin Stitt has vetoed SB 1589, a bill targeting sweepstakes casinos on Wednesday.
Unlike a real money online casino, sweepstakes - or social casinos - is an online platform that allows users to play casino-style games, including slots, bingo, table games, and even live casino games, using virtual currency instead of real money. These types of online casinos rely on additional real money purchases once the free play component is exhausted. In contrast, real money online casinos require a small deposit that can be increased through wins. Free play and cash bonuses are typically offered as well.
A veto message obtained by Gambling Insider shows Stitt argued the bill was “so broad that it criminalizes everyday apps people use for fun” and “unnecessarily creates a new felony and extends criminal liability to businesses and service providers.”
Stitt also wrote that the bill’s “vague and overbroad approach creates uncertainty for businesses operating in good faith and discourages innovation and investment in our state.”
Sweepstakes casinos aren't waiting around to see what Louisiana's governor would do after a bill was sent to his desk.
Operators of sweepstakes casinos targeting Louisiana residents would face steep fines and potential prison sentences with the new legislation that would seek to charge those running these websites with racketeering.
In cases where the racketeering activity exceeds $10,000 in value, the law requires that at least five years of any sentence be served without probation, parole, or suspension.
HB53 from Rep. Bryan Fontenot specifically adds offenses such as gambling by computer and the use of electronic sweepstakes devices to Louisiana’s racketeering statute. It passed the House on March 30 by a vote of 86–11 and won Senate approval on April 27 with a 27–9 margin.
Louisiana Gov. Jeff Landry(R) last year vetoed legislation that would have banned websites from conducting sweepstakes games that some say violate online gambling laws.
Supporters of HB 53 structured the new bill differently to address his prior objections.
Under Louisiana law, Governor Jeff Landry generally has 10 days (excluding Sundays) to sign or veto a bill while the legislature is still in session. If the legislature adjourns before that deadline expires, he gets 20 days. If he takes no action within the deadline, the bill automatically becomes law without his signature. The legislature remains in session.
The bill is widely believed to have landed on Landry's desk May 5.
- Gilbert Horowitz, Gambling911.com
