Louisiana Explores Online Casino Legalization

Louisiana could soon join the ranks of states considering the legalization of online casinos, as the Louisiana Senate prepares to convene a study committee to examine the issue. The study, mandated by a Senate resolution passed in June, aims to explore the potential benefits, concerns, and best practices of legalizing iCasino operations in the state.

The study committee, which is required to begin its work by October 1, will be composed of members from the Senate Judiciary B and Revenue and Fiscal Affairs committees. They are expected to report their findings to the Senate by March 1, 2025. The resolution was introduced by Sen. Kirk Talbot, who believes a thorough examination of the regulatory and revenue impacts of online casinos is essential.

“iGaming is a big issue, certainly the next thing in gambling,” Talbot told PlayUSA. “I thought it would be prudent for us to look at it. It’s going to be coming up, so let’s study it to have an idea of what it entails.”

 

Exploring the Impact of iGaming

The resolution, SR149, highlights several reasons for the study. Among them, the American Gaming Association's report that illegal gambling markets in the U.S. handle more than $500 billion in wagers annually, depriving states of $13 billion in tax revenue. The study will also look into how illegal offshore online casinos exploit the lack of regulation, often misleading consumers into believing they are legal in states like Louisiana.

Talbot, who previously introduced legislation for daily fantasy sports in the state, emphasized the importance of understanding both the positive and negative aspects of iGaming. “I want to hear from regulators from states that are doing it and get their take on what’s good, what’s bad, any unintended consequences, and what advice they have for us if we want to pursue it,” he said.

The push for online casino legislation comes at a critical time for Louisiana. A 45-cent sales tax, set to expire on July 1, 2025, is expected to create a $500 million budget shortfall. While revenue from online casinos wouldn't be available immediately, it could play a crucial role in future budgets. The timeline for legalizing online casinos would involve a voter referendum, similar to the process used for sports betting in 2020, when 55 of Louisiana’s 64 parishes approved it.

Although online casino revenue wouldn’t bridge the budget gap in the first year, Talbot noted, “We’re always looking for additional revenue.” The study committee’s findings, along with potential model legislation from the National Council of Legislators from Gaming States (NCLGS), could set the stage for introducing an online casino bill in the 2025 legislative session.

 

“We're always looking for additional revenue… I think it's time we look at [iGaming].” – Sen. Kirk Talbot

 

Looking Ahead

The Louisiana legislature, which convenes in mid-April 2025, will likely see its first attempt at passing online casino legislation. Talbot remains undecided on whether he will champion the bill, stating, “I’m not sure if I’m for it or against it. There’s a lot I don’t know about it yet, but I think it’s time we look at it.”

With the study committee set to begin its work and national attention on Louisiana as a potential leader in iGaming, the state could be on the cusp of a significant legislative development in the online gambling sector.