SPGA Warns Louisiana’s SB181 Could Criminalize Loyalty Programs

By John Isaac,
Editor at online-gambling.com

John Isaac Editor at online-gambling.com

John Isaac is an editor with many years of experience in the gambling industry. He writes expert articles on card games like blackjack and poker. In addition, he is also well aware of the US gambling laws and the Indian and Dutch gambling markets. You can rely on verified information and insightful details.

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Last updated: April 19, 2025

The Social and Promotional Games Association (SPGA) has raised concerns regarding Louisiana Senate Bill 181 (SB181), introduced by Senator Adam Bass. The organization warns that in an effort to tackle sweepstakes casinos, the proposed legislation in Louisiana could potentially affect consumer rewards and technology investment.

The Bill Could Directly Relate to Airline and Hotel Loyalty Schemes

The SPGA says that if SB181 goes through, it might wrongly label legal promotional prize draws as gambling while the state tries to shut down sweepstakes casinos.

The SPGA has pointed out that the bill’s broad wording could affect popular loyalty programs like Marriott Bonvoy, United MileagePlus, Delta SkyMiles, and Hilton Honors, all of which often run sweepstakes-style promos and prize draws.

For years, companies like fast-food chains and app developers have used sweepstakes to promote their products. However, since SB181 doesn’t clearly separate these activities from gambling, it could cause problems for those businesses and potentially impact the legal systems that help drive innovation and economic growth.

Currently, U.S. law states that promotional sweepstakes have to offer a free way to enter and can’t require a purchase. This is what sets them apart from actual gambling. Most people take part in these promos just for fun and don’t spend any money.

SB181 May Influence Emerging Technologies

The SPGA says SB181 might shake things up for investments in emerging technology. They mention that it could especially affect start-ups and digital platforms, including those working on AI, indicating that the bill is hostile to innovation. It could discourage venture capital investment and create uncertainty and legal risks for these businesses.

The bill moved forward without talking to key industry players. The SPGA thinks it’d be a good idea to have more conversations with stakeholders to clarify things and ensure that the bill fits with how businesses actually operate.

Conclusion

While SB181 aims to crack down on sweepstakes casinos, it could unintentionally harm legitimate businesses that use promotional sweepstakes legally and responsibly. These include loyalty programs and brands that rely on sweepstakes to engage customers.

The bill is vague and could blur the line between gambling and legal promotions, potentially discouraging investment and innovation in sectors like technology and AI. Start-ups and digital platforms may avoid operating in Louisiana if the regulatory environment is too unclear.

The SPGA urges lawmakers to engage more with industry stakeholders before moving forward. With better clarity and collaboration, the state could address its concerns about illegal gambling without disrupting the businesses that help drive economic growth.