Louisiana officially voted to legalize sports betting on November 3, 2020, thereby joining the growing number of states where it’s already legal. 1.9 million people voted on the proposal statewide with 65% of the voters supporting it and 35% opposing it. The measure passed in 55 of Louisiana’s 64 parishes. The nine parishes that voted against it, located in rural north-central Louisiana, would not allow sports betting within their territories.
Most of the proponents of the bill are in Louisiana’s big cities such as New Orleans and Baton Rouge, which already enjoy their successful physical casino industry.
Despite the overwhelming support for the legalization, another challenge emerges – should casinos be allowed to offer sport betting on their mobile platforms or not?
Legality of In-Person and Online Sports Betting in the US
The concept that sports betting can be only partially legal might seem strange to some, but this is the reality for many states, which have currently legalized this type of gambling. This statement means that while sports betting might have been legalized in a certain state, additional regulations are applied by state agencies, which often put hold on online sports betting and only allow in-person betting.
States serving as examples for this practice include Mississippi and Washington State among others. On the other hand, some states allow online sports betting only on the grounds of physical casinos, while states such as Arkansas allow certain types of online sports betting (in Arkansas’s case that is horse racing betting, greyhound racing and fantasy sports). These curious instances serve to show that individual states have the right to regulate the sports betting market however, they see fit.
Should Only In-Person Sports Betting be Allowed in Louisiana
Returning to Louisiana’s situation, the question remains – should sports betting only be allowed in-person or not. State legislators must soon respond as they are in the process of regulating this new industry. It is too early to say what is going to happen as the state only legalized sports betting in November of last year and it would take time to actually begin operations, but we can speculate based on the opinions of different Louisiana lawmakers. For now, it seems like Louisiana can go either way. Here are the viewpoints from both camps.
Proponents of Online Sports Betting
It goes without saying that if Louisiana approves of online sports betting, the state will immediately benefit from the move as it’s unclear when operations in physical casinos can turn back to normal due to the unpredictability of the COVID-19 crisis. As previously said, about 1.3 million Louisianians voted in favour of sports betting legalization. One of the reasons these voters approved of the proposal is that they want to gamble online since they can’t visit physical casinos.
House Speaker Pro Temp Tanner D. Magee (R) made the reasonable argument that casinos know “that if you don’t do mobile, it is not going to be much money.” This statement suggests that if Louisiana is to allow online sports betting, it would attract more business, which is already geared towards online gambling. Moreover, other proponents of this move argue that casino-only sports betting doesn’t generate enough tax revenue, which is always sought after, but especially now that the state and the country are economically devastated by the COVID-19 pandemic. Another Republican lawmaker, rep. John Stefanski, also made a compelling argument by stating the obvious fact – Louisianians already bet on sports online, albeit illegally, so instead of trying to stop them, the state can instead allow them to do it legally, thus also benefiting its economy.
Opponents of Online Sports Betting
On the other side of the legislative spectrum lie the opponents of online sports betting, who also have good reasons to oppose the proposal. For one, they argue that if Louisiana allows casino-only sports betting, the casino resorts would generate additional profits. These profits can come from renting hotel rooms or from playing other casino games while there. This is the opinion of Allen Godfrey, who is the executive director of the Mississippi Gaming Commission (Mississippi only allows casino sports betting). Although he doesn’t have a say in Louisiana’s legislative process, his opinion can nevertheless influence that of Louisianians lawmakers. However, the tax revenue of Mississippi’s sports wagering is nothing in comparison to New Jersey’s booming online industry (80% of the revenue comes from online betting).
There is also an ethical dimension to the discussion. The Louisiana Family Forum (LFF), advocating for traditional family values, is concerned that a relaxed approach towards gambling would result in more people gambling and possibly developing an addiction. The LFF is especially concerned about minors who might become the victim of online predatory schemes. Still, if the online market is properly regulated, such practices shouldn’t be common.
Conclusion
Louisiana’s choice to legalize sports betting was welcomed by most of its citizens. It would likely become available to the 55 parishes that voted in favour of it sometime in 2021 or 2022. In the meantime, legislators are still discussing how to regulate this new market with some proposing the introduction of online sports betting, while others are vehemently opposing it. There are good arguments from both camps and only time can tell what would eventually happen. Check our blog for updates on the matter.