Louisiana Lawmakers Considering Legalizing Online Casinos

Legislators in Louisiana have recently been looking into the possibility of making real money online casinos legal in their state after stakeholders provided mixed testimonies during the first study committee hearing held by the Senate.

Senator Kirk Talbot was first to introduce the prospect of legalizing online casinos at the end of last Senate session. Sen. Talbot noted that the topic of online casinos needs further study so that the Pelican State legislature can properly conclude the next steps,

“I know several states have legalized internet gaming, cracked down on illegal gaming, and it’s generated an enormous amount of tax dollars. And it seems like this thing just keeps growing and growing,” Sen. Talbot added.

As this will be the first of several study committee hearings in the Louisiana Senate regarding online casinos, Louisiana lawmakers intend to hold them over the next several months. This will include the Senate Judiciary B and Revenue and Fiscal Affairs committees to conduct their necessary research and report their findings to the Louisiana Senate by March 1.

The legislature convenes April 14 for the 2025 session, when Talbot or another senator may introduce the first Louisiana online casino legislation as a result of the study committee.

Online Casino Proponents Give Their Two Cents on Regulating iGaming

Light & Wonder Global Head of Government Affairs and Legislative Counsel Howard Glaser stated to the committee members that key findings from an American Gaming Association study indicated that $4.6 billion in illegal online casino gaming takes place in Louisiana today.

Glaser added that most if not all of the operators of these games are offshore companies which use Louisiana residents as an ATM to suck revenue out of the state, untaxed and with no protections for the players.

“In addition, there are well-documented cases between illegal online gaming taking place in this state and the money that comes from it and money laundering for human-trafficking, drug-trafficking and organized crime,” Glaser added.

Glaser pointed to these findings as reasons for states to consider regulating online gaming so that they can protect consumers, combat transnational crime, and capture tax revenue.

Speaking of revenue, Glaser also cited a Vixio Regulatory Intelligence study projecting that Louisiana would gross $763 million in online casino revenue. Based on Louisiana’s 15% tax revenue on brick-and-mortar slot machines, that would produce $114 million in recurring annual tax revenue.

Meanwhile, West Virginia Delegate Shawn Fluharty, who is also president of the National Council of Legislators from Gaming States (NCLGS), shared his experiences legislating online casinos in West Virginia and best practices recently developed by NCLGS as iGaming model legislation and made a draft of the Model Internet Gaming Act.

Fluharty noted that 38 states with legal sports betting produced $3.2 billion in revenue last quarter while only seven states with legal iCasino produced $2.08 billion in revenue. These numbers came from the best online casinos that are operating legally.

Support from Casino Operators in the State

Caesars Entertainment and Boyd Gaming, two traditional casino companies that have been operating in Louisiana, noted that the prospect of online casinos is a welcome one and won’t make a negative impact on their current businesses. 

Trevor Hayes, Vice President and Head of Government Relations of Caesars Digital, shared data from Caesars experiences in New Jersey. The study indicated that consumers who play online and visit casinos make 25% more trips to the physical casino than customers who only visit the casino. 

Moreover, Hayes also pointed out the investments Caesars has made into its three physical gaming properties in Louisiana recently, including $430 million to upgrade Caesars New Orleans.

“I don’t think any gaming company and I don’t know what other industry has invested almost $700 million in the state in the past three or four years… We wouldn’t follow that investment up by saying please do this other thing which is going to hurt that investment we just made into this state. We do not believe it is something that is going to be detrimental to the brick-and-mortar casinos,” Hayes added.

Boyd Gaming has five gaming properties in Louisiana. It currently operates iGaming only in Pennsylvania, but hopes that online casinos will become legal in the Pelican State soon.

Ashley Menou Center, Director of Governmental Affairs in Boyd Gaming, said that their experience in New Jersey and Pennsylvania has shown that iGaming complements the traditional casino business by engaging a new and different type of customer, 

“We believe Louisiana would also see positive results if land-based casinos were authorized to offer iGaming here.”

Meanwhile, Melissa Darden, chairman of the Chitimacha Tribe of Louisiana, stated that her tribe welcomed iGaming and the economic opportunities it would provide for the tribe and Louisiana citizens.

“I know you’re weighing a variety of factors and uncertainties when it comes to iGaming,” Darden said. “We are too. What I do know is that by engaging in iGaming, the tribe will extend into the next generation our longstanding tradition of contributing to Louisiana’s economy.”

What Does This Mean for Online Casinos in Louisiana?

Given that the conversation has been started by Sen. Talbot regarding online casinos in Louisiana, and with the hearing committee being instructed to conduct their respective research into the matter, it is safe to say that many eyes will be closely monitoring any and all developments with online casinos in the Pelican State.

If local lawmakers come to an agreement and legalize iGaming and online casinos in Louisiana, the prospect of crypto casinos might also be part of the conversation moving forward. Only time will tell, and the results of their findings in the coming months will determine which way they might lean on.