Louisiana Sues Sweeps Casinos for Taxes, California Amends Sweepstakes Ban + More

Louisiana Fires Another Bullet at Sweeps with New Lawsuit

Louisiana seems to be rather serious about going after social casino operators. After announcements that law enforcement activity would be heating up in the state, regulators from the Louisiana Department of Revenue (LDR) have jumped into the action.

The LDR has entered the fray with a new lawsuit targeting Virtual Gaming Worlds (VGW) and MW Services, claiming that the two companies owe the state nearly $44 million in penalties and unpaid state taxes.

Back in June, state legislators passed a bill outlining a ban of online casinos and sweepstakes platforms in the state, SB 181, but the governor of the state, Jeff Landry (R) decided to veto the legislation. He didn't veto it because of support for sweeps operators, but instead stated that existing laws in Louisiana already outlawed them.

Landry stated that regulators from the Louisiana Gaming Control Board (LGCB), Attorney General's Office, and the State Police Gaming Division were already on the case.

Now you can add the Louisiana Department of Revenue to the list of agencies trying to stick it to the sweepstakes casino operators that are active in the state.

The two operators targeted in this new lawsuit filing left the state a few months ago. After being recipients of the cease-and-desist letters sent by the state a few months ago, VGW ended sweepstakes coin play, while WOW Vegas left the market entirely in July.

That wasn't enough to satisfy regulators. Now they want their money.

This tax lawsuit is a new angle in the fight against sweepstakes casinos that we hadn't seen previously. We will be keeping an eye on this one.

We'll let you know as this case progresses.

California Legislators Amend Sweeps Casino Ban Bill

In a move to clarify a few portions of the proposed sweepstakes casino ban currently before the California Senate, AB 831, legislators have released some new amendments.

Here's a quick rundown of what has changed:

• Language has been added to clarify that sweepstakes type promotions from retail companies like Pepsi, McDonald's, General Mills, and Starbucks will not be affected.
• Games from the California State Lottery or gaming licensed by the Gambling Control Act won't be affected
• The law and penalties now only apply to people and companies that "knowingly and intentionally" or "knowingly and willfully" promote or facilitate these dual-currency sweepstakes casino sites.

We will continue to keep you in the loop as the bill continues working its way through the system.