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Louisiana could quickly emerge as one of the states most likely to pass online casino legislation.
The Louisiana Senate will soon convene a study committee to begin considering the benefits, concerns and best practices of legalizing iCasino.
A Senate resolution passed in the final days of the legislative session last June ordered the study. The resolution requests that Senate committees Judiciary B and Revenue and Fiscal Affairs meet jointly to study iGaming and report the findings to the Louisiana Senate by March 1.
Although the resolution requires the study committee begin meeting before Oct. 1, the Senate pushed the first hearing back to Dec. 11. This will coincide with the National Council of Legislators from Gaming States conference in New Orleans, which should help get more industry people to attend the hearing.
PlayUSA spoke with Sen. Kirk Talbot, who filed the resolution ordering the Louisiana online casino study committee. Talbot said he believes the Louisiana Senate will benefit from a comprehensive study of the potential positive and negative effects of legalizing iGaming in Louisiana from a regulatory and revenue standpoint.
“iGaming is a big issue, certainly the next thing in gambling,” Talbot said. “I thought it would be prudent for us to look at it. It’s going to be coming up so let’s study it to have an idea what it entails.”
Resolution orders Senate to study Louisiana online casino potential
Talbot introduced SR149 in the final week of the legislative session and it received little-to-no media attention.
In the resolution, Talbot named several reasons for the iGaming study committee:
- The American Gaming Association reports that more than $500 billion is wagered on the illegal market across the country, costing states $13 billion in tax revenue.
- Illegal offshore online casinos take in $340 billion in bets annually without the responsible gambling commitment and protection of vulnerable customers offered by a regulated market.
- Illegal offshore online casinos deceptively advertise to make consumers believe they are legal in Louisiana.
“I just hope to kind of get my arms around it,” Talbot said. “Obviously, other states are doing it. I want to hear from regulators from states that are doing it and get their take on what’s the good, what’s the bad, what’s the byproduct, any unintended consequences, things they would do differently looking back and what advice they have for us if we want to pursue it.”
Talbot, a member of Judiciary B, said Chair Mike Reese also was interested in holding the iGaming committee.
Louisiana online casino could fill revenue need
On July 1, 2025, a 45-cent added sales tax will end after eight years. That leaves Louisiana looking to fill a $500 million budget hole next legislative session.
Online casino revenue isn’t likely to help that first year. Legalizing Louisiana online casino will require going in front of voters. Like with sports betting, each Louisiana parish can choose whether or not to allow iGaming. In 2020, 55 of 64 Louisiana parishes approved sports betting.
If Louisiana lawmakers like what they hear in the study committee and pass legislation next year, the issue could go in front of voters toward the end of 2025. That likely wouldn’t get Louisiana online casino up and generating revenue until near the end of the fiscal year.
That doesn’t mean Louisiana iGaming revenue couldn’t help fill a significant portion of that sales tax hole the following year and for years to come.
It’s not a coincidence that Talbot asked Judiciary B, which handles gaming issues, to join the commitee that handles revenue issues for this study committee.
“It’s not going to be ready to plug the gap to be a factor in next year’s budget, but we’re always looking for additional revenue,” Talbot said.
NCLGS iGaming model also could jumpstart Louisiana effort
Speaking on a panel at the National Council of Legislators from Gaming States conference in Pittsburgh last month, Judiciary B attorney Alan Miller said a committee member asked him to draft online casino legislation this year two days before the bill filing deadline.
Miller looked into drafting a bill and came back telling the senator that NCLGS was producing iGaming model legislation later this year. He advised him to wait until next year to file a bill, which the senator agreed to.
And it just so happens that NCLGS will approve and release the iGaming model legislation in Louisiana. Talbot, who hasn’t previously attended NCLGS, said he plans to attend the conference this December in New Orleans.
Talbot said hearing of the coming NCLGS model iGaming legislation led him to file the resolution for the study committee.
The Louisiana legislature convenes on April 14, a late start in 2025. However, with the study committee, NCLGS model and the senator’s aborted attempt this session, it appears highly likely that a Louisiana lawmaker will introduce online casino legislation for the first time next year.
Talbot said he won’t know if that will be him until he goes through the study committee. He said he wasn’t the senator who asked Miller to look into drafting a bill this year.
“I’m not sure if I’m for it or against it,” said Talbot, who previously introduced daily fantasy sports legislation in the state. “There’s a lot I don’t know about it yet, but I think it’s time we look at it.”
