Louisiana’s SB181 Could Criminalize Travel Loyalty Programs, Turn State into No-Go Zone for Tech Investment, SPGA Warns

The Social and Promotional Games Association (SPGA) vehemently opposes Louisiana Senate Bill 181 (SB181), introduced by Senator Adam Bass, which recklessly misclassifies legitimate sweepstakes as illegal gambling. This misguided legislation endangers lawful businesses and sends a chilling message to investors, jeopardizing Louisiana’s burgeoning tech sector.

For decades, companies—from fast-food chains to app developers—have utilized sweepstakes as legal promotional tools. SB181’s failure to distinguish between these lawful activities and gambling not only threatens these businesses but also undermines established legal frameworks that support innovation and economic growth.

Even more troubling, SB181’s overly broad definitions could unintentionally criminalize loyalty and rewards programs run by some of the most respected brands in the country. Programs like Marriott Bonvoy, United MileagePlus, Delta SkyMiles, and Hilton Honors often offer sweepstakes-style promotions and prize drawings as part of their customer engagement. These well-established, widely used programs could be swept into legal jeopardy under the current language of the bill—an outcome that would be both absurd and deeply damaging to consumer trust.

Contrary to the assumptions behind this bill, research shows that social sweepstakes do not compete with real-money casinos. These games operate under strict “no purchase necessary” rules, ensuring they remain free to play for everyone. In fact, the vast majority of users never spend a dime—they play for entertainment and the excitement of winning real prizes at no cost. Lumping these games in with gambling is not just legally inaccurate—it’s economically and culturally tone-deaf.

Moreover, by criminalizing legitimate business models, SB181 discourages venture capital investment, potentially stifling the development of emerging technologies, including artificial intelligence. This legislative overreach positions Louisiana as hostile to innovation, putting the state at a competitive disadvantage compared to more forward-thinking regions.

Alarmingly, SB181 has advanced without meaningful consultation with industry stakeholders. SPGA urges Louisiana legislators to halt this ill-conceived bill immediately and engage with experts to craft policies that protect consumers without dismantling legitimate businesses or deterring technological advancement.

SPGA calls on Louisiana lawmakers to reject SB181 before it inflicts lasting damage on the state’s economy and reputation as a hub for innovation.