Louisiana lawmakers have taken a significant step toward addressing illegal gambling, including sweepstakes casinos, with the passage of House Bill 53 (HB 53). This new legislation classifies certain gambling offenses as racketeering activity under the Louisiana Racketeering Act, carrying severe penalties for those convicted.

HB 53, which passed through the state House with an 86-11 vote on March 30 and the Senate with a 27-9 vote on April 27, now awaits Governor Jeff Landry’s decision to sign it into law or veto it. The bill’s core objective is not to introduce a new standalone ban on sweepstakes gambling but to add existing gambling crimes, such as gambling by computer and the use of electronic sweepstakes devices, to the racketeering statute. This would allow prosecutors to pursue enterprise-level cases, rather than simply isolated gambling violations, depending on the circumstances of each case.

Strengthened Enforcement Against Illegal Gambling

The bill significantly expands the scope of gambling-related crimes that can be prosecuted under the racketeering framework. If signed into law, violators could face fines of up to $1 million and prison sentences of up to 50 years at hard labor, or both. Moreover, if the racketeering activity involved more than $10,000, offenders would be required to serve a minimum of five years without the possibility of parole or probation. This creates a far more stringent penalty system than typical illegal gambling cases in the U.S.

HB 53 aims to address the growing concerns around illegal gambling, particularly in the form of online sweepstakes casinos, which use a dual-currency model to simulate traditional gambling. These casinos have faced increasing scrutiny from regulators. In fact, following last year’s veto of a direct sweepstakes ban by Governor Landry, Louisiana authorities have sent out over 40 cease-and-desist orders to operators. These actions reflect a more aggressive stance on tackling unauthorized gambling within the state.

“HB 53 signals a legislative preference for leveraging broader criminal statutes—racketeering definitions and related investigative approaches—while still relying on current gambling laws,” explained one insider familiar with the legislation. The bill strengthens Louisiana’s legal framework for tackling illegal gambling and equips prosecutors with the tools to pursue more complex, enterprise-level cases.

Context and Support for the Bill

The move to amend the racketeering law comes after Governor Landry vetoed an earlier attempt to ban sweepstakes casinos in 2025. According to SBC Americas, his rationale was that existing authorities, including the Louisiana Gaming Control Board (LGCB) and the state police, already had sufficient tools to address the issue. However, HB 53 expands on those tools, focusing on gambling crimes that have become more sophisticated in recent years.

Louisiana’s Chief Deputy Attorney General, Larry Frieman, has strongly supported the bill, emphasizing the need for a tougher approach to illegal gambling. In committee hearings, he argued that this form of gambling poses significant risks to the state’s legal and regulatory environment. With the passage of HB 53, state officials hope to close any remaining loopholes that have allowed these operations to thrive.

In addition to HB 53, Louisiana is also pushing forward House Bill 883 (HB 883), which targets online sweepstakes gaming. Unlike HB 53, HB 883 does not impose racketeering charges but seeks to add dual-currency sweepstakes games to the state’s definition of illegal gambling. This bill, which passed the House with a 99-0 vote, is designed to combat the widespread use of sweepstakes models in online gambling.

While HB 53 focuses on enhancing penalties for racketeering activities, HB 883 targets a broader spectrum of operators, including platform providers and promoters of illegal gambling. Violators could face fines up to $40,000 and up to five years in prison. Both bills represent a coordinated effort by Louisiana lawmakers to tackle illegal gambling comprehensively.

The final impact of these legislative changes will depend on how the laws are enforced and interpreted by prosecutors. For operators and vendors involved in sweepstakes-style gambling, it is crucial to monitor the state’s evolving enforcement priorities, particularly as Louisiana shifts towards using broader legal frameworks like racketeering to tackle illegal gambling more effectively.