Louisiana Lawmakers Clash Over Online Gambling Legalization

As the National Council of Legislators from Gaming States (NCLGS) prepares to convene in New Orleans, Louisiana lawmakers are delving into the contentious topic of online gambling. A Senate Judiciary B Revenue and Fiscal Committee hearing on December 11 saw heated debate among industry players, with most land-based casino operators supporting the legalization of iGaming—except for one notable dissenter, the Cordish Companies.

Casino heavyweights Boyd Gaming and Caesars Entertainment threw their weight behind online gambling, calling it a complementary offering that attracts new customers without cannibalizing physical casino revenues. Ashley Menou Center, head of government relations for Boyd, argued that iGaming “doesn’t take players out of the brick-and-mortar; it brings new players to the market.” Former Michigan lawmaker Brandt Iden, now with Fanatics Betting & Gaming, echoed this sentiment, sharing that iGaming taxes in Michigan provided critical funding for public services during the pandemic.

Cordish, however, maintained its staunch opposition, dubbing iGaming a “bad bet” for Louisiana. General Counsel Mark Stewart cited concerns over economic and social costs, including job losses, addiction risks, and declining revenues for physical casinos in states where iGaming is legal. Stewart highlighted data from Deutsche Bank showing an 11.7% decline in physical casino revenue in states with legal online gambling compared to revenue growth in states without it.

Cordish’s position drew criticism for its perceived hypocrisy. While opposing iGaming in Louisiana, the company operates an online casino in Pennsylvania, marketing it as “the hottest action in the palm of your hand.” John Pappas, representing the industry group iDEA Growth, called out the inconsistency, noting that Cordish is prepared to participate in Louisiana’s online market if legalized, despite its public opposition.

Problem gambling advocates added another layer to the debate. Brianne Doura-Schawohl, testifying for the Campaign for Fairer Gambling, argued that online gambling exacerbates addiction issues. She supported Cordish’s warnings about social costs, pointing to Louisiana's sharp rise in gambling hotline calls since digital sports betting launched in 2022.

The Louisiana Video Gaming Association (LVGA) also voiced strong opposition, labeling iGaming a threat to their sector. LVGA representative Alton Ashy criticized the disparity in tax rates, with digital wagering taxed at 15% compared to 32% for video lottery terminals. He warned that online gambling could stifle future investments in physical casinos.

 

iGaming doesn’t take players out of the brick-and-mortar; it brings new players to the market.

 

Conclusions

Supporters countered these claims with evidence of iGaming’s potential benefits. Pappas pointed to studies showing that online gambling complements, rather than cannibalizes, land-based gaming sectors. A Spectrum study in Wyoming found no erosion of video lottery terminal revenues in West Virginia, a state with legal iGaming. Advocates also emphasized that legalization provides consumer protections and helps curtail black-market gambling.

The debate underscores the challenges Louisiana faces in balancing economic opportunities, social responsibilities, and industry interests. With lawmakers still educating themselves on the issue, the divide between proponents and opponents remains stark. Whether Louisiana follows states like Michigan in embracing iGaming—or heeds warnings from critics like Cordish—will have significant implications for its gaming landscape.