Louisiana Considers the Legalization of Online Casinos

Louisiana lawmakers are actively exploring the regulation of online casinos (iGaming) as a potential option to address the state’s looming budget deficit.

On December 11th, 2024, the Senate Judiciary B and Revenue and Fiscal Affairs Committees convened a joint session to discuss the implications of legalizing iGaming within the state. This session stems from Senate Resolution 149, introduced by Senator Kirk Talbot in June, which mandates a comprehensive study on the subject with findings due by March 1st, 2025.

iGaming to Cover Budget Deficit

The state is faced with a projected $500 million shortfall due to the expiration of a temporary sales tax on July 1st, 2025. Legalizing iGaming is viewed as a potential revenue stream to mitigate this deficit.

However, Senator Talbot emphasized the importance of understanding both the benefits and drawbacks of iGaming, stating,

“It’s going to be coming up so let’s study it to have an idea what it entails.”

During the session committee members heard that the 38 U.S. states with regulated sports betting are expected to generate $13 billion in annual gaming revenue this year. In contrast, the seven states with regulated iGaming markets are projected to bring in $8 billion in revenue in 2024. Meanwhile, the American Gaming Association stated that Louisiana residents gambled over $4.6 billion at offshore casinos.

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 land-based casino operators are opposed to the move. The Cordish Companies General Counsel Mark Stewart added:

“Over $700m has been invested or committed to move casinos on shore 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.”

Ronnie Jones, former chairman of the Louisiana Gaming Control Board also noted:

“The brick and mortar properties are clearly struggling in some areas and there will be very real questions about cannibalization of their customers.”

The study committee is tasked with delivering its findings to the Senate by March 1st, 2025. The legislature will reconvene on April 14th, 2025, providing a narrow window to draft and consider any potential iGaming legislation before the session adjourns in June.

Model Internet Gaming Act

Earlier in 2024, the National Council of Legislators from Gaming States (NCLGS) introduced a Model Internet Gaming Act to guide states considering iGaming legalization.

This model legislation recommends tax rates between 15% and 25% and emphasizes responsible gaming measures, such as prohibiting credit card deposits and setting daily deposit limits for all gambling websites.

It also calls for a complete ban on social and sweepstakes casinos, a move that has already been adopted by several states amid ongoing legal challenges to operators of these sites and most notably VGW who faces 12 lawsuits.

Jada Yang

iGaming writer with over a decade of experience in sports betting and online casino reporting.