In Louisiana, casino operators and staffers with the attorney general, the State Police and the Gaming Control Board are preparing for the launch of sports betting in 55 of the state’s 64 parishes.
But the agency that oversees gambling, the Gaming Control Board, remains without a leader. Mike Noel abruptly resigned rather than face questions from lawmakers about his role as a State Police commander in the death of a black motorist in 2019.
Casino Association of Louisiana Executive Director Wade Duty said, “That work can go on for a week or two or so, no problem, there’s nothing ripe for a decision yet. But we’ll soon get to a fork in the road, where executive decisions will have to be made. I’m not pushing the panic button just yet.”
Governor John Bel Edwards is said to be considering applicants and hopes to name a new gaming board leader “sooner rather than later,” according to his press office.
State Senator Ronnie Johns, with three major casinos in his Lake Charles district, recently met with Edwards and discussed the job opening. Johns said, “I’d be proud to do it. I think I’d have a lot to offer because the board needs leadership to make sure the industry is compliant, clean and pristine during this critical time.”
Over the next one to two months, Gaming Control Board staff will work on administrative regulations for sports betting, such as internal controls, operating procedures and technical aspects of the mobile betting platforms. The rules will be published in August or September, then casinos and mobile gaming operators can apply for a sports betting license. Louisiana State Police will spend about three months conducting investigations and processing the applications. As a result, Duty said bettors probably will have to wait until November of December to place their bets.
Duty explained Louisiana will allow 20 sports betting licenses, one each for the state’s 15 riverboat casinos, four racinos and the land-based New Orleans casino. Each license will also include two mobile licenses, meaning potentially 41 skins; the additional one would go to the Louisiana Lottery Corp., which plans to offer an online app and install up to 1,000 kiosks in bars and restaurants that serve alcohol.
Lottery Corp. President and Chief Executive Officer Rose Hudson said up to 1,000 sports betting kiosks will be located in bars and restaurants that serve alcohol. She said the lottery will have its own rules for sports betting, separate from the gaming commission. Asked about sports betting’s launch, Hudson said, “I heard the legislators saying by the start of football season. That made me nervous. I don’t see us starting in August. We’ll need to have a better handle on it first.”
Also under the new sports betting laws, each facility applying for a sports betting license will be required to build a retail sportsbook. Revenue would be taxed at 10 percent with 60 percent going to the general fund; 25 percent to early education; 12 percent to the parishes; 2 percent to gambling addiction programs; and 1 percent to a sports wagering purse fund for horseracing.
In a 2019 report, Spectrum Gaming Group estimated Louisiana sports betting could generate between $237 million to $332 million in annual revenue, and $2 billion to $2.6 billion over the next 10 years. Also, the report said, sports betting could attract younger customers to casinos. Matt Roob, Spectrum senior vice president of analysis, commented, “It’s all about convenience. If you can bet on your phone, why would you go to Mississippi?” As for on-site sportsbooks, he stated, “You’re going to go to the place that’s closest and most convenient.”
