Even as Louisiana has enjoyed financial success with legal online sports betting, the state legislators are still wary of venturing into the more lucrative domain of online casino gambling.
State Sen. Kirk Talbot, a major force behind Louisiana's gaming policy, has acknowledged the revenue value of online casinos but said it is unlikely a bill to legitimize them would advance in the upcoming legislative session.
Online casino gaming is now legal in seven U.S. states: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. In these states, online sites offering games like slots, poker, and roulette have proven to be huge money-makers.
iGaming revenue for New Jersey, the benchmark for U.S. online gambling, was $207.8 million this past February, a 14% year-on-year increase. This growth attests to the broader nationwide trend of consumer preference shifting to mobile and digital channels, even in traditionally location-based industries like gambling.
Sen. Talbot recognizes the trend and acknowledges that the gaming industry, like most, is heading toward mobile-first access. But he says Louisiana's unique economic and regulatory landscape has presented challenges that have prevented online casino legislation from gaining traction.
Among the biggest concerns is how it will impact the state's brick-and-mortar casinos, which remain significant economic generators and employers in their local communities.
Talbot has reported that stakeholders and lawmakers worry that launching online casinos would cannibalize brick-and-mortar casino property revenue. More specifically, there is a worry that wide digital access to casino games through online casinos could eat into visitor traffic to physical sites, potentially creating jobs and ancillary business revenue in parishes with heavy reliance on casino-driven tourism and hospitality.
Sports betting takes off in Louisiana
Louisiana's cautious approach to online casino gambling is quite the opposite of how it has treated sports betting, which has been adopted rapidly and expanded significantly. Online sports betting has been among the fastest-growing gaming segments in the state since its legalization in 2021.
In February alone, Louisiana saw over $355 million in mobile sports bets - a 40% increase from February 2024. Since its beginning, the state has collected over $147 million in tax revenue from sports betting.
Talbot credits this achievement to thorough legislative planning and a regulatory structure modeled on the experience of other states. Before establishing Louisiana's version, legislators looked to policies in different locales with established sports betting industries.
Despite the parallels between online sports wagering and online casino gaming - particularly in platform delivery, end-user adoption, and revenue potential - lawmakers remain reluctant to push forward bills that would upset the balance between offline and online gaming.
Online casino bill filings have been forthcoming in recent years, but none have gained sufficient momentum to progress through committee stages or make it to a vote.
There is also a greater political calculus at play. While economically bountiful, the gambling industry remains a politically sensitive topic in many parts of Louisiana. Legislators may be hesitant to submit bills that would fuel controversy or meet resistance from conservative constituencies despite the fiscal benefit.
