Although mobile sports betting in Louisiana has been an unmitigated success, the topic of iGaming legalization has not received nearly as warm a welcome and is unlikely to gain traction during this legislative session.
Sports Betting Scores in Louisiana
Louisianans have welcomed the sports betting craze with open arms, and the state’s tax coffers are benefitting. Mobile sports betting launched in Louisiana in January 2022, and the state has collected over $147 million in taxes because of it.
This February, Louisiana mobile sportsbooks accepted north of $355.7 million in wagers, which was a 41% year-over-year increase, while retail books handled $25.5 million, an increase of 18% from last February. Revenues were up a whopping 90% over last February, with the sportsbooks generating a combined $47.6 million, with the state receiving $7.4 million.
Louisiana state Senator Kirk Talbot credits due diligence, careful planning, and reviewing what worked in other states as the recipe for success.
“We looked at what other states were doing and kind of learned the good and the bad and what worked and what didn’t work,” Talbot added.
“It seems to be working really well. A lot of the money that has been dedicated to early childhood development has exceeded our expectations,” said Talbot.
iGaming Not in the Cards
Despite the success Louisiana has had in its relatively new digital gaming industry, the reception for the more lucrative online casino gambling has been chilly, to say the least. Louisiana lawmakers are not unique in this regard, as only seven states, including New Jersey, Delaware, West Virginia, Pennsylvania, Michigan, Connecticut, and Rhode Island, have passed iGaming legislation and are now reaping the financial dividends.
There are two primary reasons why states like Louisiana are reticent to embrace online casino gambling. First is the potential threat to land-based casinos in terms of cannibalization of their business. As a corollary, unions have also been outspoken against iGaming as they believe the drop in the casinos’ bottom line could result in job losses at those properties where union workers are employed.
Fear of Problem Gambling
Fear of addictive behavior is the other third rail issue that has rallied anti-gambling forces and who have pressured lawmakers into voting against any such measures. A 24-hour casino replete with slots, blackjack, roulette, and other table games can be much more tempting than sports betting due to the immediate gratification it renders.
Senator Talbot understands the distinction between online sports betting and iGaming, saying, “Online gambling is a whole different animal. We obviously don’t want kids doing it. We don’t want addicts doing it; we don’t want to fuel addictive gambling with that. If done right, it can be successful; other states have proved that.”
Talbot also added, “We want to protect the jobs we have at Caesars and at the other land-based casinos. I have one in my district with Treasure Chest Casino in Kenner. So, we don’t want to do anything to hurt them.”
Conservative Opposition
One other factor at play in Louisiana is the conservative nature of many of the legislators’ constituencies that could turn against them at the ballot boxes if they deem them too gambling friendly.
Despite the allure of iGaming’s staggering profit margins, which would feed the insatiable appetite of Louisiana’s tax coffers, it is highly unlikely any online casino gambling bill will see the light of day…at least for this year.
