Online casino gaming is being discussed as a viable option to cut the deficit in Louisiana, and a feasibility study to examine that possibility is due in March.
Will Louisiana Roll the Virtual Dice?
As of this writing, 38 states, as well as Washington, DC, and Puerto Rico, have legalized and launched sports betting, with Missouri on deck to do the same in 2025. However, online casino gambling has not been nearly as eagerly embraced, with only seven states currently offering virtual slots and table games, including New Jersey, Delaware, West Virginia, Pennsylvania, Michigan, Connecticut, and Rhode Island.
Ironically, there is far more money to be made in the iGaming market than in the mobile sports betting realm, yet states have shied away for two primary reasons.
First, legislators believe allowing a virtual casino in the palm of one’s hand is much more addictive than access to a mobile sportsbook.
Second, land-based casinos that pay millions in taxes, have invested billions in their properties, and supply thousands of jobs are generally opposed to it as they fear it will cannibalize their business.
Yet, budget deficits force legislators to look in conventional and unconventional directions to solve their financial woes. In Louisiana’s case, there is a $500 million deficit that needs to be solved. Therefore, it is not all that surprising that Louisiana’s Senate Judiciary B and Revenue and Fiscal Affairs Committees convened earlier in December to discuss the pros and cons of initiating an iGaming bill.
In June, Senator Kirk Talbot introduced Senate Resolution 149 to order a comprehensive study on online gambling in the state, whose findings are due on March 1, 2025. A temporary sales tax expired in June, which precipitated the iGaming study and prompted legislators to find a permanent solution to the loss in temporary revenue.
“It’s going to be coming up, so let’s study it to have an idea what it entails,” said Talbot.
Two Sides of the Same Coin
During the committee session, it was learned that the 38 states collectively generated $13 billion in annual gaming revenue in 2024 compared to $8 billion from the seven states that offer iGaming. The American Gaming Association also pointed out that Louisianans gambled $4.6 billion at offshore betting sites. The implication is that a vast majority of that money would be spent at Louisiana-licensed online casinos, where the state will get a fair chunk of that from taxes on iGaming revenue.
Light & Wonder Global Head of Government Affairs and Legislative Counsel Howard Glaser told the committee meeting:
“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. These are some of the reasons that states consider regulating online casino gaming to protect consumers, combat transnational crime, and capture tax revenue.”
However, on the other side of that coin were voices from anti-iGaming forces like General Counsel Mark Stewart of the Cordish Companies, which own several land-based casinos.
“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.”
