Online Casino Debate Returning to Louisiana Through Senate Committee

Article by : Erik Gibbs Aug 27, 2024

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The Louisiana Senate is getting ready to explore the possibility of legalizing online casinos, with a study committee set to begin its work this October. This move, which could position Louisiana as one of the next states to embrace iGaming, stems from a resolution passed in the final days of the previous legislative session. The resolution calls for a detailed examination of the potential benefits and concerns surrounding the introduction of online casinos in the state.

Senator Kirk Talbot, who filed the resolution, believes that a comprehensive study is crucial before any decisions are made. He emphasized the importance of understanding both the positive and negative impacts of iGaming, particularly in terms of regulation and revenue. Talbot sees online casinos as “the next big issue in gambling” and feels that Louisiana should be proactive in considering its implications.

The study committee, which will consist of members from the Senate’s Judiciary B and Revenue and Fiscal Affairs committees, is tasked with delivering its findings by March 1. The committee will examine various aspects of iGaming, including its potential to generate significant tax revenue for the state.

Currently, illegal online gambling is a significant problem, with the American Gaming Association estimating that over $500 billion is wagered on the illegal market across the US each year. This results in a loss of around $13 billion in tax revenue for states. Additionally, illegal offshore online casinos are reportedly taking in $340 billion in bets annually, often misleading consumers into believing that they are operating legally in states like Louisiana.

The timing of this study is particularly relevant, as Louisiana faces a substantial budget shortfall. The expiration of a 45-cent added sales tax on July 1, 2025, is expected to create a $500 million gap in the state budget. While revenue from online casinos wouldn’t immediately fill this gap, it could play a significant role in the following years. If the study committee’s findings are favorable, and if legislation is passed next year, the issue could be put to voters by the end of 2025, with online casinos potentially operational by late 2026.

Talbot is also looking to learn from other states that have already legalized online casinos. He plans to attend the National Council of Legislators from Gaming States (NCLGS) conference in December, where model legislation for iGaming is expected to be introduced. This model could serve as a blueprint for Louisiana’s efforts, helping to streamline the legislative process.

While it’s still uncertain whether Talbot himself will introduce the online casino legislation, he remains open-minded, stating that he needs to learn more before taking a position. His past involvement in passing daily fantasy sports legislation in Louisiana suggests he is no stranger to navigating the complexities of gaming law.