Louisiana legislators recently convened to explore the possibility of regulating online casino gaming within the state. This week, the Louisiana Senate Judiciary B and Revenue and Fiscal Affairs Committees assembled to deliberate on the rise of igaming, its potential regulation, and how the industry affects various parts of the nation. Having legalized online sports betting in 2022, Louisiana is examining the prospects of igaming as the seven regulated markets in the United States report strong revenue figures.
Data shared with committee members highlight that the 38 U.S. states with regulated sports betting are expected to earn $13 billion in annual gaming revenue. In comparison, the seven U.S. igaming markets are projected to bring in $8 billion by 2024.
Advocates for igaming in Louisiana point out the widespread illicit gaming activity as a justification for instituting regulated online casinos. A study by the American Gaming Association reveals that approximately $4.6 billion has been wagered illegally with online casinos in Louisiana.
Regulating igaming could provide additional safeguards for Louisiana residents. “Illegal online gaming is closely linked to money laundering, drug trafficking, and organized crime,” stated Howard Glaser, Global Head of Government Affairs and Legislative Counsel at Light & Wonder, during the committee meeting. “These factors drive states to consider regulating online casino gaming as a means to protect consumers, tackle international crime, and secure tax revenue.”
Introducing igaming regulations may also curb the proliferation of unauthorized sweepstakes operators, which are functioning across the country without proper licensing. “These operations aren’t small ventures like the former internet cafes,” Glaser added. “These are substantial international firms, with one alone spending $400 million on U.S. marketing.”
Despite the potential for increased revenue, igaming raises concerns among some groups, including The Cordish Companies, an entertainment management firm. “Over $700 million has been invested to relocate casinos onshore, delivering significant economic advantages to Louisiana,” remarked Mark Stewart, General Counsel for The Cordish Companies. “However, introducing igaming might undermine these initiatives and deter further land-based investments.”
Concerns about cannibalization also emerge regarding igaming in Louisiana. Representatives from the Cordish Companies presented data from three existing regulated igaming markets, indicating a slight decline in gross revenue for traditional retail casinos.
Opponents also argue that online casinos could exacerbate gambling addiction issues in Louisiana, given the convenience of accessing igaming via mobile devices. This accessibility raises concerns for those striving to address problem gambling.
Louisiana lawmakers will continue to evaluate the potential effects of igaming on the state’s gaming landscape, weighing both the advantages and drawbacks of online casinos. Senate Resolution 149, approved in June, will allow these discussions to progress further.