The same week lawmakers from across the US descended on New Orleans to discuss iGaming, Pelican State legislators began contemplating Louisiana online casino legalization.
Last week, the Senate Judiciary B and Revenue and Fiscal Affairs Committee held a hearing on the potential expansion into Louisiana online casino gambling. It came as New Orleans hosted the National Council of Legislators from Gaming States’s winter conference, where model online casino legislation was a main topic of discussion.
While lawmakers and regulators recognize they are losing tax dollars to unregulated iGaming operators, they also acknowledge the potential issues of allowing residents easier access to online casinos.
Untaxed online casino opportunities
The committee meeting was a result of Senate Resolution 149, a bill the Louisiana Legislature passed earlier this year to study the online casino industry.
Rep. Mike Echols highlighted the estimated $4.6 billion in illegal online casino revenue seen in Louisiana each year. Those illegal dollars connect to a litany of other crimes, said Howard Glaser, Light & Wonder’s global head of government affairs and legislative counsel.
“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 told the committee, arguing legalization and regulation will help protect customers and generate tax dollars.
Responsible gambling concerns
Stakeholders are concerned about putting slot machines in the pockets of residents. But Louisiana Gaming Control Board Chairman Chris Hebert said it’s a question of regulation.
”One thing to travel to a casino and game, but it’s another thing to be able to do it from your couch,” Hebert said. “Those present real problems. As regulators, that is not lost on us.”
Louisiana casino cannibalization concerns
A main argument against online casino expansion has been the potential cannibalization of brick-and-mortar revenue. Similar to hearings in Maryland earlier this year, The Cordish Companies testified against iGaming last week.
“Over $700 million has been invested or committed to move casinos on shore, bringing tremendous economic benefits to Louisiana,” said Mark Stewart, The Cordish Companies’ general counsel. “But we submit that bringing iGaming to Louisiana would pull the rug out from under these projects and discourage additional land-based investment.”
At NCLGS’s summer conference earlier this year, Maryland Sen. Ron Watson debriefed attendees on lessons learned during his failed attempt at online casino legalization. During a different panel, regulators from legal iGaming markets dispelled the cannibalization concerns.
Other online casino opposition
Along with The Cordish Companies, multiple other opponents made their voices heard.
The Louisiana Video Gaming Association spoke against the expansion on behalf of the video poker industry. Likewise, so did the Louisiana Family Forum and Cajun Bingo Supply.
On the other hand, Caesars Entertainment, Boyd Gaming, and the Sports Betting Alliance were all in attendance to support online casinos. The SBA includes BetMGM, DraftKings, Fanatics, and FanDuel.
Industry group iDEA Growth also testified in favor of the gambling expansion.
