Louisiana Discusses Legal Framework for Digital Casinos

Following the legalisation of digital sports betting in 2022, Louisiana is now considering expanding oversight to include internet casino operations, inspired by the success of similar initiatives across the US.

Benefits of Regulation

During the meeting, officials reviewed revenue projections for both niches. Digital sports wagering, legal in 38 US jurisdictions, is forecast to generate $13 billion annually. The seven regions with controlled internet casinos are expected to produce $8 billion in 2024.

These numbers highlight the financial opportunity Louisiana could capture by regulating this growing sector.

Advocates for oversight pointed out the widespread activity of illegal platforms within the region. A study by the American Gaming Association revealed that $4.6 billion has been staked unlawfully through offshore internet casinos in the state.

Key benefits of introducing oversight include:

1. Consumer safety. Protecting residents from fraudulent and insecure operators.
2. Disrupting corruption. Preventing illegal profits from supporting organised crime and funds laundering.
3. Recovering revenue. Redirecting money currently spent on unlawful platforms back into Louisiana’s economy.

Howard Glaser from Light & Wonder stated that controlling these platforms would address the link between illegal operators and criminal activities, ensuring better safeguards for Louisiana residents.

Unregulated sweepstakes companies were also a focus of discussion. These entities often operate without proper authorisation, posing significant risks. Mr Glaser highlighted that one international sweepstakes operator had spent $400 million on advertising in the US, emphasising the scale of these activities.

Opposition and Concerns

Not all stakeholders are in favour of introducing controlled Internet casinos. The Cordish Companies, a prominent entertainment firm, expressed concerns over potential economic and social impacts.

Key points of opposition included:

1. Revenue shifts. Data from other regulated markets indicated a slight decline in profits for brick-and-mortar venues after the introduction of online platforms.
2. Financial influence. Over $700 million has been invested in relocating casinos onshore, generating local economic benefits.
3. Addiction risks. Critics noted that the availability of mobile platforms might contribute to gambling-related problems.
4. Community impact. Increased ease of access could lead to broader societal challenges.

Lawmakers plan to continue their discussions on the future of Internet casino regulation. Senate Resolution 149, approved earlier this year, allows for further examination of the topic.

The debate will weigh the economic potential of oversight against concerns for existing investments and social well-being. Louisiana aims to find a balanced approach that considers both the advantages and challenges of regulating this growing segment.