Committee discusses illegal gaming, improving casino operations in Louisiana
Dec 16, 2024
A Louisiana legislative subcommittee met Thursday to talk about how to stop illegal gambling and how to improve the state’s competitiveness in the industry.
The House Casino Operations Subcommittee, a branch of the House Committee on the Administration of Criminal Justice, heard a presentation from Chris Hebert, the chairman of the Louisiana Gaming Control Board.
The first major threat to Louisiana gaming mentioned was in Texas. Hebert says a legislative session at the beginning of next year in the Lone Star State might further bring legalization of casino gaming and a push for sports betting.
The Pelican State has already advanced competitive measures in 2018 to allow licensees to relocate their operations from vessels to landside facilities. This allows riverboat casinos to be more competitive, which the state could use considering there’s only one land based casino in the state.
This is important because, as Hebert points out, many big gambling locations like Las Vegas bring in customers for entertainment just as much as the gambling itself. This new law allows for more space, given that it is hard to host many different entertainment revenues on a barge or something similar.
Several riverboat casinos have just moved inland because of this rule, and are seeing the rewards fiscally.
Fantasy sports were also introduced to the state recently, although currently at a lower tax rate than the casinos, which is the primary interest of the committee because that’s what brings in dollars to the state.
Tax incentives or lower tax rates were both pitched during the meeting as ways to further compete with neighboring states who are already or expected to offer such motivations.
Unfortunately for casinos and the committee, other states aren’t the only competition. There is also a lot of illegal gambling happening in the state and elsewhere, which is particularly important to stop for the administration of criminal justice which this subcommittee resides under.
Many locations who flood the state with unregulated slot machines either mislead or flat out ignore the regulations, and online platforms employ a sweepstakes model to dodge regulations on basic gambling.
Hebert says in the U.S. more than $500 million are wagered illegally on offshore websites. That’s money that the Legislature can’t tax, which takes money away that the state can use on things like education or health care.
The board has recently stopped some illegal gaming on sites like Bovada with a cease and desist order, but there is still more work to be done.
Many gambling houses, mostly in Houston, are recruiting card dealers from casinos with the advantage of not having to abide by regulations, allowing them to pay more.
Overall, the committee and board agree that although they’ve made strides, gambling is such a huge industry that they cannot stop here and must continue to form legislation that promotes legal casino operations in the state and demotes illegal activities.
“Louisiana gaming is a key part of our economy, but its true potential has yet to be fully realized,” Rep. Michael Echols, R-Ouachita, said. “By modernizing our regulatory framework, by elevating the quality of our operators, and aligning policies to encourage reinvestment, Louisiana can position itself as a leader in this industry.”