Louisiana policymakers will consider online casino gaming legislation in the coming weeks, a welcome development for a gambling form that has struggled to gain nationwide acceptance.
Two Louisiana state Senate committees are set to meet later this year in preliminary discussions about legalizing real-money online slots and table games in the state. The full legislature isn’t set to meet until April 2025, meaning any legalized iGaming platforms are at least a year away.
And that’s if a bill passes, which is no sure bet.
Despite having one of the nation’s more robust brick-and-mortar gaming environments and online sports betting in Louisiana, the Pelican State could struggle to pass online casino gaming. There remains fear within the gaming industry that these digital platforms could take away or “cannibalize” revenue for the brick-and-mortar properties that employ thousands. As in most other states, there is also a pocket of conservative, anti-gambling lawmakers that would oppose any gaming expansion.
Nationwide struggle
These are among the major roadblocks that have stalled iGaming across the country. Though 38 states, Washington DC, and Puerto Rico approved some form of legal sports betting in the past six years, only seven states have approved online casino gaming in the past decade.
Only four — New Jersey, Pennsylvania, Michigan, and West Virginia – have fully competitive iGaming markets. Connecticut only permits DraftKings and FanDuel, Rhode Island only allows Bally Casino, and Delaware permits just BetRivers.
Nevada, the epicenter of US gambling, permits real money online poker but not digital slots or table games.
More than a half-dozen states considered iGaming legislation last year. Few gained much traction.
No state is set to pass online casino legislation this calendar year. The likeliest next states, per an industry conference panel today, include:
— Ryan Butler (@ButlerBets) May 6, 2024
- Colorado
- Illinois
- Indiana
- Iowa
- Maine
- Maryland
- New York
- Wyoming
[@Covers]
Maryland’s House of Delegates passed online casino legislation with overwhelming bipartisan support. The bill stalled in the Senate as members of the Upper Chamber echoed fears iGaming would hurt jobs.
Cordish Companies, which operates Live! Casino Maryland in Hanover, has publicly campaigned against iGaming.
A batch of gambling-friendly Midwestern states including Iowa, Indiana, and Illinois saw even less progress in their respective 2024 legislative sessions. Industry observers believe all three could face similar difficulties in 2025.
New York iGaming supporters remain bullish that the Empire State can approve online casinos as early as next year. However, controversy surrounding the awarding of three downstate casino licenses, along with the aforementioned political roadblocks, could again thwart what would be the nation’s most populated regulated iGaming jurisdiction.
Major issues
For elected officials across the country and all political leanings, iGaming has not proven politically popular. Along with cannibalization and moral concerns, many politicians don’t want to support allowing real money gambling from a phone — or, as some detractors have put it, a “slot machine in every pocket.”
This resistance comes as thousands of unregulated offshore sites are still available in every state. Some regulated gambling jurisdictions have started cracking down on some of the more prominent offshore regulators, but they are fighting an impossible battle to stop all of them.
The American Gaming Association and gambling stakeholders have asked the federal government, the only entity capable of significantly cracking down on international illegal operators to act. Federal officials have shown little capacity or interest in doing so.
No state is set to pass online casino legislation this calendar year. The likeliest next states, per an industry conference panel today, include:
— Ryan Butler (@ButlerBets) May 6, 2024
- Colorado
- Illinois
- Indiana
- Iowa
- Maine
- Maryland
- New York
- Wyoming
[@Covers]
Online casino gaming’s inability to make progress has been a major handicap to the bottom line of many top gambling companies, most notably digital-only brands such as DraftKings and FanDuel. Online table games, and more so slots, have far higher profit margins than digital sportsbooks.
This means iGaming legalization will remain a focus in 2025. Passing meaningful legislation will remain a challenge.
