Louisiana Considers Online Casino Expansion Amid National Gaming Discussions

Louisiana legislators are evaluating the possibility of legalizing online casino gambling, coinciding with the National Council of Legislators from Gaming States (NCLGS) conference held in New Orleans. The state Senate’s Judiciary B and Revenue and Fiscal Affairs Committee conducted a hearing last week, discussing the economic implications and regulatory challenges associated with online casinos. The timing highlighted the broader conversation around model legislation discussed at the NCLGS winter conference.

While acknowledging the financial drain caused by unregulated iGaming operators, state lawmakers also debated the risks associated with expanding legal access to online gambling.

Investigating Illegal Online Casino Revenue

The committee meeting stemmed from Senate Resolution 149, ed earlier this year to facilitate a detailed study of Louisiana’s online casino industry. Representative Mike Echols brought attention to the estimated $4.6 billion generated annually through illegal online casino activities within the state. He stressed that these untaxed operations often link to criminal enterprises.

Howard Glaser, global head of government affairs at Light & Wonder, ed Echols’ concerns, saying: “There are well-documented connections between illegal online gaming taking place in the state and the money that comes from it for money laundering, for drug trafficking and for organized crime.”

Glaser emphasized that legalization and regulation could mitigate criminal activities while generating valuable tax revenue for the state.

Balancing Regulation and Responsible Gaming

Responsible gaming emerged as a significant focus during the discussions. Louisiana Gaming Control Board Chairman Chris Hebert underscored the complexities of transitioning gambling accessibility from physical locations to personal devices.

Hebert noted: “One thing to travel to a casino and game, but it’s another thing to be able to do it from your couch. Those present real problems. As regulators, that is not lost on us.”

This concern reflects the apprehension of stakeholders wary of increasing accessibility without adequate oversight.

One of the key arguments against iGaming legalization has been its potential to harm existing brick-and-mortar casinos. Mark Stewart, general counsel for The Cordish Companies, testified that online gambling might erode investments already made in physical casino operations.

“Over $700 million has been invested or committed to move casinos on shore, bringing tremendous economic benefits to Louisiana,” Stewart stated. “But we submit that bringing iGaming to Louisiana would pull the rug out from under these projects and discourage additional land-based investment.”

This perspective echoes debates seen in other states like Maryland, where similar reservations have been voiced. However, regulators from states with legalized online casinos have challenged the cannibalization argument in previous discussions.

Broader Opposition and

Additional opposition to the expansion of online casinos came from organizations like the Louisiana Video Gaming Association, the Louisiana Family Forum, and Cajun Bingo Supply, all citing concerns about market disruption.

However, prominent industry players, including Caesars Entertainment, Boyd Gaming, and the Sports Betting Alliance, expressed strong for iGaming. The alliance, which features brands such as BetMGM, DraftKings, Fanatics, and FanDuel, highlighted the benefits of regulated online casinos.

The advocacy group iDEA Growth also voiced its approval, emphasizing the potential for safe, regulated gambling environments that generate state revenue.

Source:

”Louisiana state senators begin online casino conversations”, cdcgaming.com, December 22, 2024.