SPGA highlights potential impact of Louisiana bill on loyalty programs
Proposed legislation could affect consumer rewards and technology investment, as the state tries to tackle sweepstakes casinos.
Key points:
– The SPGA highlights that Louisiana’s SB181 could directly relate to airline and hotel loyalty schemes
– The bill may influence technology investment and business operations
The Social and Promotional Games Association (SPGA) has raised points regarding Louisiana Senate Bill 181 (SB181), introduced by Senator Adam Bass. The SPGA notes that if the bill is passed, it could lead to the misclassification of legal promotional prize draws as gambling activities, as the state attempts to tackle sweepstakes casinos.
The SPGA has noted that the broad language of the bill could have an impact on loyalty schemes, such as Marriott Bonvoy, United MileagePlus, Delta SkyMiles and Hilton Honors. These loyalty programs often include sweepstakes-style promotions and prize draws.
For decades, companies including fast-food chains and app developers have used sweepstakes as a promotional tool. The lack of distinction between these activities and gambling in SB181 may create challenges for these businesses and could have implications for the legal frameworks that support innovation and economic growth.
Under existing US law, promotional sweepstakes must offer free entry and do not require any purchase, ensuring they are distinct from gambling activities. The SPGA notes that most participants engage with these promotions for entertainment, without any monetary transaction involved.
Good to know: The SPGA represents organisations involved in promotional prize draws and social games. The association is calling for further review of SB181 to ensure that existing practices are preserved
The SPGA also highlights that SB181 may influence investment in emerging technologies. The association has indicated that the bill could have an impact on start-ups and digital platforms, including those exploring applications in artificial intelligence.
The SPGA also observes that the bill has advanced without consultation with relevant industry groups. The association suggests further discussions with stakeholders to ensure clarity and alignment with current business practices.
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