HLS 14RS-930 REENGROSSED
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Regular Session, 2014
HOUSE BILL NO. 293
BY REPRESENTATIVES ADAMS AND LOPINTO
GAMBLING: Prohibits gambling by electronic sweepstakes device
AN ACT1
To enact R.S. 14:90.7, relative to gambling; to create the crime of gambling by electronic2
sweepstakes device; to provide for definitions; to provide for criminal penalties; to3
provide for applicability; to provide for exceptions; and to provide for related4
matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 14:90.7 is hereby enacted to read as follows: 7
ยง90.7. Gambling by electronic sweepstakes device8
A. The Louisiana Legislature finds that in recent years various companies9
have developed electronic machines and devices to enable gambling through10
pretextual sweepstakes relationships with Internet services, telephone cards, and11
other products, and that such electronic sweepstakes systems using electronic12
gambling machines, computer terminals, and other means of presented simulated13
gambling, are contrary to the public policy of this state.14
B. Gambling by electronic sweepstakes device is the intentional conducting15
of, or directly assisting in the conducting of, as a business any game, contest, lottery,16
or contrivance whereby a person risks the loss of anything of value in order to realize17
a profit, through the operation of an electronic gaming machine or device that does18
or purports to do either of the following:19 HLS 14RS-930 REENGROSSED
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(1) Conduct a sweepstakes through the use of a simulated gambling device,1
including the entry process or the revealing of a prize.2
(2) Promote a sweepstakes that is conducted through the use of a simulated3
gambling device, including the entry process or the revealing of a prize.4
C. For the purposes of this Section, the following definitions shall apply:5
(1) "Electronic gaming machine or device" means a mechanically,6
electrically, or electronically-operated machine or device that is intended to be used7
by a sweepstakes entrant and that displays the results of a game entry or game8
outcome to a participant on a screen or other mechanism at a business location,9
including a private club, that is owned, leased, or otherwise possessed, in whole or10
in part, by any person conducting the sweepstakes or by that person's partners,11
affiliates, subsidiaries, agents, or contractors. The term includes an electronic12
gaming machine or device which includes any of the following characteristics:13
(a) Uses a simulated game terminal as a representation of the prizes14
associated with the results of the sweepstakes entries.15
(b) Uses software that simulates a game that influences or determines the16
winning or value of the prize.17
(c) Selects prizes from a predetermined finite pool of entries.18
(d) Uses a mechanism that reveals the content of a predetermined19
sweepstakes entry.20
(e) Predetermines the prize results and restores those results for delivery at21
the time the sweepstakes entry is revealed.22
(f) Uses software to create a game result.23
(g) Requires a deposit of any money, coin or token, or the use of any credit24
card, debit card, prepaid card, or other method of payment to activate the electronic25
gaming machine or device.26
(h) Requires direct payment into the electronic gaming machine or device27
or remote activation of the electronic gaming machine or device.28 HLS 14RS-930 REENGROSSED
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(i) Requires purchase of a related product and the related product has1
legitimate value.2
(j) Reveals the prize incrementally even though it may not influence whether3
a prize is awarded or the value of any prize awarded.4
(k) Determines and associates the prize with an entry or entries at the time5
the sweepstakes is entered.6
(2) "Enter" or "entry" means the act or process by which a person becomes7
eligible to receive any prize offered in a sweepstakes.8
(3) "Prize" means any gift, award, gratuity, good, service, credit, or anything9
else of value which may be transferred to a person whether or not possession of the10
prize is actually transferred or placed on an account or other record as evidence of11
the intent to transfer the prize. "Prize" shall not include free or additional play or12
intangible or virtual prizes that cannot be converted into money or merchandise.13
(4) "Simulated gambling device" means a mechanically or electronically14
operated machine, network, system, or device that is intended to be used by an15
entrant to a game promotion or sweepstakes and that displays a simulated gambling16
display on a screen or other mechanism at a business location, including a private17
club, that is owned, leased, or otherwise possessed, in whole or in part, by any person18
conducting the game or by that person's partners, affiliates, subsidiaries, agents, or19
contractors. The term shall include, but is not limited to:20
(a) A video poker game or any other kind of video card game.21
(b) A video bingo game.22
(c) A video craps game.23
(d) A video keno game.24
(e) A video lotto game.25
(f) Eight liner.26
(g) Pot-of-gold.27
(h) A video game based on or involving the random or chance matching of28
different pictures, words, numbers, or symbols.29 HLS 14RS-930 REENGROSSED
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(i) A personal computer of any size or configuration that performs any of the1
functions of an electronic gaming machine or device as defined in this Section.2
(j) A slot machine.3
(5) "Sweepstakes" means any game, advertising scheme, plan, or other4
promotion that, with or without payment of any consideration, a person may enter5
to win or become eligible to receive any prize.6
D. Whoever commits the crime of gambling by electronic sweepstakes7
device shall be fined not more than twenty thousand dollars, imprisoned with or8
without hard labor for not more than five years, or both.9
E. The conducting or assisting in the conducting of gaming activities or10
operations upon a riverboat, at the official gaming establishment, by operating an11
electronic video draw poker device, by a charitable gaming licensee, or at a12
pari-mutuel wagering facility, conducting slot machine gaming at an eligible horse13
racing facility, or the operation of a state lottery which is licensed for operation and14
regulated under the provisions of Chapters 4 and 11 of Title 4, Chapters 4, 5, 7, and15
8 of Title 27, or Subtitle XI of Title 47 of the Louisiana Revised Statutes of 1950,16
shall not be considered gambling by electronic sweepstakes device for the purposes17
of this Section, provided that the wagering is done on the premises of the licensed18
establishment.19
F. The conducting or assisting in the conducting of pari-mutuel wagering at20
licensed racing facilities under the provisions of Chapter 4 of Title 4 of the Louisiana21
Revised Statutes of 1950 shall not be considered gambling by electronic sweepstakes22
device for the purposes of this Section provided that the wagering is done on the23
premises of the licensed establishment.24
G. Nothing in this Section shall prohibit, limit, or otherwise restrict the25
purchase, sale, exchange, or other transaction related to stocks, bonds, futures,26
options, commodities, or other similar instruments or transactions occurring on a27
stock or commodities exchange, brokerage house, or similar entity.28 HLS 14RS-930 REENGROSSED
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H. Nothing in this Section shall limit or alter in any way the application of1
the requirements for sweepstakes, contests, prizes, and similar activities under the2
provisions of Chapter 19-A of Title 51 of the Louisiana Revised Statutes of 1950.3
I. The providing of Internet or other on-line access, transmission, routing,4
storage, or other communication-related services, or website design, development,5
storage, maintenance, billing, advertising, hypertext linking, transaction processing,6
or other site-related services, by telephone companies, Internet service providers,7
software developers, licensors, or other such parties providing such services to8
customers in the normal course of business, shall not be considered gambling by9
electronic sweepstakes device even though the activities of such customers using10
such services to conduct a prohibited game, contest, lottery, or contrivance may11
constitute gambling by computer for the purposes of this Section. The provisions of12
this Subsection shall not exempt from criminal prosecution any software developer,13
licensor, or other such party if its primary purpose in providing such service is to14
support the conduct of gambling as a business.15
J. The provisions of this Section shall not prohibit the operation of a16
stand-alone electronic sweepstakes machine or device which is not linked to any17
other machine or connected to the Internet for purposes other than accounting and18
maintenance if both of the following occur:19
(1) The operation of the electronic sweepstakes machine or device is not20
otherwise prohibited by law.21
(2) The organization which is operating the device is a charitable22
organization which has been in existence in Louisiana for more than ten years on23
August 1, 2014, has as its primary purpose providing services to veterans of the24
United States Armed Services, and is recognized as tax-exempt pursuant to Section25
501(c), of the Internal Revenue Code.26 HLS 14RS-930 REENGROSSED
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Adams HB No. 293
Abstract: Creates the crime of gambling by electronic sweepstakes device.
Present law provides for the crimes of gambling and gambling by computer.
Proposed law retains present law.
Proposed law defines gambling by electronic sweepstakes device as the intentional
conducting of, or directly assisting in the conducting of, as a business any game, contest,
lottery, or contrivance whereby a person risks the loss of anything of value in order to realize
a profit, through the operation of an electronic gaming machine or device that does or
purports to do either of the following:
(1)Conduct a sweepstakes through the use of a simulated gambling device, including
the entry process or the revealing of a prize.
(2)Promote a sweepstakes that is conducted through the use of a simulated gambling
device, including the entry process or the revealing of a prize.
Proposed law provides penalties of a fine of more than $20,000, imprisonment with or
without hard labor for not more than five years, or both.
Proposed law creates exception for legalized forms of gaming which are authorized by
present law if the activity is conducted on the licensed premises.
Proposed law creates exceptions for stock market trading done by computer.
Proposed law creates an exception for providing Internet or cable services.
Proposed law creates an exception for a charitable veterans' organization.
(Adds R.S. 14:90.7)
Summary of Amendments Adopted by House
House Floor Amendments to the engrossed bill.
1. Added an exception for a charitable veterans' organization.