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Regular Session, 2014
SENATE BILL NO. 311
BY SENATOR MORRELL
GAMING. Prohibits gambling by electronic sweepstakes device. (8/1/14)
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 various9
companies have developed electronic machines and devices to enable gambling10
through pretextual sweepstakes relationships with Internet services, telephone11
cards, and other products, and that such electronic sweepstakes systems using12
electronic gambling machines, computer terminals, and other means of13
presented simulated gambling, are contrary to the public policy of this state.14
B. Gambling by electronic sweepstakes device is the intentional15
conducting of, or directly assisting in the conducting of, as a business any game,16
contest, lottery, or contrivance whereby a person risks the loss of anything of17 SB NO. 311
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value in order to realize a profit, through the operation of an electronic gaming1
machine or device that does or purports to do either of the following:2
(1) Conduct a sweepstakes through the use of a simulated gambling3
device, including the entry process or the revealing of a prize.4
(2) Promote a sweepstakes that is conducted through the use of a5
simulated gambling device, including the entry process or the revealing of a6
prize.7
C. For the purposes of this Section, the following definitions shall apply:8
(1) "Electronic gaming machine or device" means a mechanically,9
electrically, or electronically operated machine or device that is intended to be10
used by a sweepstakes entrant and that displays the results of a game entry or11
game outcome to a participant on a screen or other mechanism at a business12
location, including a private club, that is owned, leased, or otherwise possessed,13
in whole or in part, by any person conducting the sweepstakes or by that14
person's partners, affiliates, subsidiaries, agents, or contractors. The term15
includes an electronic gaming machine or device which includes any of the16
following characteristics:17
(a) Uses a simulated game terminal as a representation of the prizes18
associated with the results of the sweepstakes entries.19
(b) Uses software that simulates a game that influences or determines20
the winning or value of the prize.21
(c) Selects prizes from a predetermined finite pool of entries.22
(d) Uses a mechanism that reveals the content of a predetermined23
sweepstakes entry.24
(e) Predetermines the prize results and restores those results for delivery25
at the time the sweepstakes entry is revealed.26
(f) Uses software to create a game result.27
(g) Requires a deposit of any money, coin or token, or the use of any28
credit card, debit card, prepaid card, or other method of payment to activate29 SB NO. 311
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the electronic gaming machine or device.1
(h) Requires direct payment into the electronic gaming machine or2
device or remote activation of the electronic gaming machine or device.3
(i) Requires purchase of a related product and the related product has4
legitimate value.5
(j) Reveals the prize incrementally even though it may not influence6
whether a prize is awarded or the value of any prize awarded.7
(k) Determines and associates the prize with an entry or entries at the8
time the sweepstakes is entered.9
(2) "Enter" or "entry" means the act or process by which a person10
becomes eligible to receive any prize offered in a sweepstakes.11
(3) "Prize" means any gift, award, gratuity, good, service, credit, or12
anything else of value which may be transferred to a person whether or not13
possession of the prize is actually transferred or placed on an account or other14
record as evidence of the intent to transfer the prize. "Prize" shall not include15
free or additional play or intangible or virtual prizes that cannot be converted16
into money or merchandise.17
(4) "Simulated gambling device" means a mechanically or electronically18
operated machine, network, system, or device that is intended to be used by an19
entrant to a game promotion or sweepstakes and that displays a simulated20
gambling display on a screen or other mechanism at a business location,21
including a private club, that is owned, leased, or otherwise possessed, in whole22
or in part, by any person conducting the game or by that person's partners,23
affiliates, subsidiaries, agents, or contractors. The term shall include but is not24
limited to:25
(a) A video poker game or any other kind of video card game.26
(b) A video bingo game.27
(c) A video craps game.28
(d) A video keno game.29 SB NO. 311
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(e) A video lotto game.1
(f) Eight liner.2
(g) Pot-of-gold.3
(h) A video game based on or involving the random or chance matching4
of different pictures, words, numbers, or symbols.5
(i) A personal computer of any size or configuration that performs any6
of the functions of an electronic gaming machine or device as defined in this7
Section.8
(j) A slot machine.9
(5) "Sweepstakes" means any game, advertising scheme, plan, or other10
promotion that, with or without payment of any consideration, a person may11
enter to win or become eligible to receive any prize.12
D. Whoever commits the crime of gambling by electronic sweepstakes13
device shall be fined not more than twenty thousand dollars, imprisoned with14
or without hard labor for not more than five years, or both.15
F. The conducting or assisting in the conducting of gaming activities or16
operations upon a river boat, at the official gaming establishment, by operating17
an electronic video draw poker device, by a charitable gaming licensee, or at a18
pari-mutuel wagering facility, conducting slot machine gaming at an eligible19
horse-racing facility, or the operation of a state lottery which is licensed for20
operation and regulated under the provisions of Chapters 4 and 11 of Title 4,21
Chapters 4, 5, 7, and 8 of Title 27, or Subtitle XI of Title 47 of the Louisiana22
Revised Statutes of 1950, shall not be considered gambling by electronic23
sweepstakes device for the purposes of this Section, provided that the wagering24
is done on the premises of the licensed establishment.25
G. The conducting or assisting in the conducting of pari-mutuel26
wagering at licensed racing facilities, under the provisions of Chapter 4 of Title27
4 of the Louisiana Revised Statutes of 1950, shall not be considered gambling28
by electronic sweepstakes device for the purposes of this Section, provided that29 SB NO. 311
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the wagering is done on the premises of the licensed establishment.1
H. Nothing in this Section shall prohibit, limit, or otherwise restrict the2
purchase, sale, exchange, or other transaction related to stocks, bonds, futures,3
options, commodities, or other similar instruments or transactions occurring on4
a stock or commodities exchange, brokerage house, or similar entity.5
I. Nothing in this Section shall limit or alter in any way the application6
of the requirements for sweepstakes, contests, prizes, and similar activities7
under the provisions of Chapter 19-B of Title 51 of the Louisiana Revised8
Statutes of 1950.9
J. The providing of Internet or other on-line access, transmission,10
routing, storage, or other communication-related services, or website design,11
development, storage, maintenance, billing, advertising, hypertext linking,12
transaction processing, or other site-related services, by telephone companies,13
Internet service providers, software developers, licensors, or other such parties14
providing such services to customers in the normal course of business, shall not15
be considered gambling by electronic sweepstakes device even though the16
activities of such customers using such services to conduct a prohibited game,17
contest, lottery, or contrivance may constitute gambling by computer for the18
purposes of this Section. The provisions of this Subsection shall not exempt19
from criminal prosecution any software developer, licensor, or other such party20
if its primary purpose in providing such service is to support the conduct of21
gambling as a business.22
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by James Benton.
DIGEST
Morrell (SB 311)
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 SB NO. 311
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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.
Effective August 1, 2014.
(Adds R.S. 14:90.7)