Louisiana Weighs the Future of Online Casino Legislation

The Louisiana Senate began exploring the potential legalization of online casinos during a study committee hearing, which drew mixed reactions from stakeholders. The hearing was initiated by Sen. Kirk Talbot, who introduced a resolution to examine the issue. Talbot emphasized the growth of internet gaming nationwide and the need to address illegal offshore activities that exploit Louisiana residents without contributing to the state’s economy. He highlighted the potential benefits of regulating online gaming, including consumer protections, reduced illegal activity, and increased tax revenue.

 

How is the debate unfolding

Howard Glaser of Light & Wonder presented data showing an estimated $4.6 billion in illegal online casino gaming occurring in Louisiana annually. He linked illegal gaming to organized crime and human trafficking, emphasizing the need for regulation. Glaser also cited projections that legalized online casinos could generate $763 million in revenue and $114 million in annual tax contributions to the state. West Virginia Del. Shawn Fluharty shared insights from his state, noting that online gaming has been effective in reducing black market activity and generating new revenue. He described online gaming as a policy-driven approach to modernizing the gaming industry while providing economic benefits.

Representatives from Caesars Entertainment and Boyd Gaming supported the move, stating that online casinos would complement rather than compete with brick-and-mortar establishments. They shared data from other states showing increased foot traffic and revenue for physical casinos when paired with online gaming options. The Chitimacha Tribe of Louisiana also expressed interest, citing the economic opportunities online gaming could bring to the tribe and the state.

Opponents voiced concerns about the potential negative impact of online casinos on existing gaming operations and societal issues. Mark Stewart of Cordish Cos. argued that online gaming could cannibalize land-based casino revenue, discouraging future investment in Louisiana. Representatives of the video poker and charitable gaming industries echoed these concerns, warning of potential harm to their sectors. Religious organizations opposed the measure on moral grounds, arguing that legalizing online gaming would exacerbate societal issues like gambling addiction and family breakdown.

Proponents of online gaming countered some of these claims, pointing to inconsistencies in the arguments against legalization. Brandt Iden of Fanatics noted that iGaming proved critical in supporting Detroit’s economy during the pandemic. John Pappas of iDEA highlighted that some data used to show revenue declines in states with online gaming failed to account for pandemic-related disruptions. He also pointed out the hypocrisy of companies like Cordish opposing online gaming in Louisiana while operating similar platforms in states like Pennsylvania.

 

Legalizing online casinos in Louisiana could generate $763 million in revenue and $114 million in annual tax contributions, while combating illegal offshore gaming that drains resources from the state.

 

Conclusion

Louisiana legislators expressed varying levels of concern. Some, like Sen. Beth Mizell, questioned the societal impact of making online gaming more accessible. Others, including Sen. Adam Bass and Sen. Sam Jenkins, focused on the potential harm to Louisiana’s existing gaming industry and sought more information before making a decision.

The Senate study committee will continue gathering input, with findings expected to be reported by March 1. The legislature will reconvene in April, potentially paving the way for Louisiana’s first online casino legislation. The debate reflects the complex balance between economic opportunity, industry protection, and social responsibility that lawmakers must navigate as they consider the future of gaming in the state.