Should Louisiana expand online gambling? Lawmakers hear from an industry split on the idea

From online sports betting to video poker to riverboat casinos to charity bingo.

Gaming interests of all varieties — and some fierce opponents of all gambling — showed up at the Capitol this week to stake out their positions on a contentious question:

Should online gambling be legal in Louisiana?

Unlike the seven states that currently allow online casino gambling, sometimes called ‘igaming,’ using your phone or computer to play traditional casino games like slots, roulette and blackjack for money is currently outlawed in the Bayou State.

But advocates who want to change that told a Senate committee that permitting igaming in Louisiana would allow the state to increase tax revenue and protect consumers from illegal gambling operations — without negatively impacting the bottom line of brick-and-mortar casinos.

“It really is bringing in new revenue. It’s shrinking the black market and protecting the consumer,” said Shawn Fluharty, president of the National Council of Legislators from Gaming States, which advocates for “proper regulation” of gaming.

Gambling interests split

“Igaming is a bad bet for Louisiana,” countered Mark Stewart, general counsel for The Cordish Companies, which owns the soon-to-open Live! Casino and Hotel in Bossier City, a project with a $270 million price tag.

“Igaming means less foot traffic to casinos. Less foot traffic means less revenue,” said Stewart.

Louisiana Video Gaming Association lobbyist Alton Ashy, who represents the state’s video poker industry, didn’t equivocate.

“Let me be very clear: This is the video poker’s Rubicon. We will die on this hill,” said Ashy. “Video poker adamantly opposes any type or form of online gaming.”

Louisiana Family Forum, a conservative Christian policy advocacy organization, also lodged its opposition to legal online casino gambling.

So did Ruth Collins, co-owner of Cajun Bingo Supply and president of the Association of Charities, which she says represents “close to 400 charities who run bingo in the state.”

“What happens if this is approved? It’s gonna hurt the charities,” said Collins.

But Trevor Hayes, a lobbyist for Ceasars Entertainment, argued online casino gambling is “an additive product” for brick-and-mortar casinos.

Ceasars is the largest North American gaming company and has 50 casinos in more than a dozen states, sports betting in 30 states and igaming in four states, Hayes said. In Louisiana, it owns Horseshoe Bossier City, Horseshoe Lake Charles and Caesars New Orleans, formerly Harrah’s.

“We do not believe that it’s gonna be something that’s detrimental to the brick-and-mortar casinos,” said Hayes.

He also pointed out something discussed several times during the hourslong meeting: “It’s not a question of do you want igaming in Louisiana. It’s here.”

A lobbyist for Boyd Gaming Corporation — which owns 28 gaming sites across the country, including Louisiana’s Treasure Chest in Kenner, Sam’s Town in Shreveport, Amelia Belle in Morgan City and Evangeline Downs and Delta Downs — agreed, saying that online gambling “attracts new and different customers.”

A lobbyist for Sports Betting Alliance, a trade group that includes BetMGM, DraftKings, FanDuel and Fanatics, said that group supports legalizing online gambling in Louisiana.

A proposed blueprint

Fluharty, the National Council of Legislators from Gaming States president, is also a state lawmaker in West Virginia, one of the seven states where online gambling is legal.

He told the committee of Louisiana senators that his organization is in the process of drafting “nearly finalized” model legislation, which can be used by state legislatures as a starting template for online gambling regulations.

He said some elements of that igaming model legislation include a 15-25% tax rate, a partnership model between online and brick-and-mortar operators, a “fast track” for operators that already have a sports betting license, maximum wager limits, dedicated funding for “responsible gambling” programs and minimum-age requirements.

The group is holding its bi-annual meeting this weekend in New Orleans, where several Louisiana public officials will feature as panelists.

The debate over increasing the accessibility of gambling in Louisiana and under what circumstances has been going on for decades.

In the early 1990s, lawmakers agreed that 15 licensees could run gambling operations on floating riverboats.

By 2018, lawmakers said they could move their casinos ashore.

That same year, the U.S. Supreme Court legalized online sports betting, and Louisiana lawmakers greenlighted that practice in 2021.

This year, Sen. Kirk Talbot, R-River Ridge, citing a recent report by the American Gaming Association on “illegal and unregulated gambling,” sponsored a resolution to have state lawmakers study online gambling.

This week’s Senate committee meeting was held as part of that resolution, which asks for a report on the committee’s findings by March.

But Senate President Cameron Henry, R-Metairie, said in a brief interview Friday that he is unsure if there’s an appetite to legalize online gambling.

“It’s worthy of a discussion. I don’t know if it’s worthy of legislation yet,” he said.

Worries about addiction

At the committee meeting, Talbot said he’s sure at some point there will be legislation on the issue, noting many feel there are two sides to it.

“We’re all worried about underage people gambling, people that are addicted to gambling, is this gonna exacerbate that situation?” he said. “On the positive side, it does generate enormous amounts of money.”

While Fluharty argued that the absence of regulation allows bad actors to take advantage of unsuspecting consumers and that a legal framework allows regulators to set up consumer protections, two state senators didn’t hide their skepticism.

“If we’re going to just legalize another bad behavior, it’s not going to be in the interest of the families of this state,” said Sen. Beth Mizell, R-Franklinton.

“This is the same argument to legalize marijuana,” she later added. “There’s a lot of what we perceive as detrimental behaviors to society that have contributed to the breakdown of family … that we’re trying to find a way to legalize and control it.”

Said Sen. Adam Bass, R-Bossier City: “It sounds like we’re gonna have an increase in gambling addiction based on accessibility.”