Recently, lawmakers in Louisiana, United States, met to evaluate the possibility of regulating online casino games.
Discussions were led by the Louisiana Senate Judiciary B and Revenue and Fiscal Affairs Committees, focusing on the prevalence of iGaming and its potential economic impact in the US state.
Since 2022, Louisiana has allowed online sports betting, and is now considering expanding this regulation to online casinos, a move already present in seven regulated markets in the US.
Economic impact and risks related to online casinos
According to data presented to the committees, the 38 U.S. states that have regulated sports betting expect to generate about $13 billion in annual revenue. In contrast, the seven regulated iGaming markets in the US are expected to reach $8 billion by 2024.
However, there is growing concern about illegal gambling in Louisiana. A study by the American Gaming Association reveals that gamblers spend approximately $4.6 billion at unregulated online casinos in the state.
Lobbyists argue that regulating iGaming would not only increase tax revenue, but also protect citizens.
Howard Glaser, Head of Government Affairs and Legislative Counsel at Light & Wonder Global, commented: “There is strong evidence that illegal online gaming in Louisiana is linked to organized crime and money laundering. Regulation could mitigate these risks, in addition to offering protection to consumers.”
Land-based casinos fear online competition
However, the discussion on regulation faces opposition from several entities. According to the General Counsel of Cordish Companies, more than $700 million was spent to create land-based casinos in the state. Therefore, the advancement of iGaming could affect these investments.
“Introducing iGaming to Louisiana could undermine existing projects and discourage new investment,” warns Stewart.
Therefore, policymakers will continue to examine iGaming and its possible effect on the local market, carefully considering both the potential benefits and drawbacks. Senate Resolution 149, approved in June, will allow this discussion to continue.
