Could Online Casino Gaming Be Coming to Louisiana?

Facing a projected $500 million deficit, Louisiana legislators are seeking alternative solutions to relieve the state of its debt and attract new revenue. One suggestion that is gaining traction is the legalization of iGaming.

Digital Cash Cow

Louisiana launched mobile sports betting in January 2022, and the numbers continue to grow. Louisiana has made over $52 million in taxes over the last two years, and the man who authored sports betting legislation in the Pelican State, state Senator Kirk Talbot, is understandably thrilled about the money that it has generated for the state’s tax coffers. “It has definitely exceeded what I thought it would do,” said Talbot. “I think we got a pretty good process,” he added.

But getting legislators and voters to embrace online sports betting has been relatively easy, as 38 states currently have mobile and/or retail sports betting. However, mustering support for online casino gambling, also known as iGaming, has been a tall task, as evidenced by the fact that only seven states, including New Jersey, Delaware, West Virginia, Pennsylvania, Michigan, Connecticut and Rhode Island, have launched digital casinos.

Economic Boon or Business Bust?

Many believe the reluctance to bring iGaming to the masses has to do with the effect it would have on land-based casinos and the potential for addictive behavior. The majority of casino owners are vehemently opposed, believing digital gaming could cannibalize business at retail establishments and lead to job losses.

But states like Louisiana that are seeking new revenue sources are tempted because iGaming generates much more income than mobile sports betting. New York has made billions since launching sports betting just around the same time in January 2022 as Louisiana, yet it is facing a $4.3 billion deficit that is only going to increase. The Empire State could be open to iGaming as well.

Last week the Senate Judiciary B and Revenue and Fiscal Affairs Committees convened a joint session to discuss the possibility of legalizing iGaming in Louisiana and what that would mean. Back in June, the same man who sponsored mobile sports betting, Senator Kirk Talbot, introduced Senate Resolution 149, which will study the impacts of iGaming with its findings scheduled to be released in March 2025. 

Pros & Cons

It is estimated that $4.6 billion in untaxed revenue is leaving Louisiana bettors’ wallets and going into the pockets of offshore online casino operators. It begs the question that if Louisianans are going to bet with non-licensed iGaming companies, then why not legalize it, regulate it, tax it, and keep that money for themselves?

Representative Mike Echols stated, “They’re predatorily coming after our constituents and allowing them to gamble online. I don’t think our issue is with our constituents doing something; it is with these vendors.”

Light & Wonder Gaming’s Head of Government Affairs and Legislative Counsel Howard Glaser said, “You can pay for some of this with a Mastercard or a Visa. You did not approve this, but it is happening and is happening throughout the state.”

But not everyone is a fan. Mark Stewart, General Counsel of the Cordish Companies, has opposed the prospect of online casino gaming. “Over $700m has been invested or committed to move casinos onshore, bringing tremendous economic benefits to Louisiana. But we submit that bringing iGaming to Louisiana would pull the rug out from under these projects and discourage additional land-based investment,” said Stewart.

Ronnie Jones, former chairman of the Louisiana Gaming Control Board, agreed, stating: “The brick-and-mortar properties are clearly struggling in some areas, and there will be very real questions about cannibalization of their customers.”