Louisiana Debates Online Casinos: Cordish Companies Sparks Controversy

Louisiana legislators have initiated discussions on the potential legalization of online casinos, a hot topic ahead of the National Council of Legislators from Gaming States (NCLGS) conference in New Orleans. During a Senate Finance Committee hearing on December 11, most land-based casino operators expressed support for the move, with one notable exception: Cordish Companies.

Cordish Companies’ Stance
Cordish Companies, which operates land-based casinos in states including Louisiana, Florida, Maryland, and Pennsylvania, stood firm in opposition to online casinos. Representing the company, attorney Mark Stewart highlighted concerns about online gambling, labelling it a “job killer” and questioning the accuracy of projected revenue benefits. Stewart argued that online casinos could harm economic growth and reduce tax revenue from existing gaming operations.

Stewart also presented statistics suggesting that digital gambling could negatively impact land-based casino revenues while exacerbating gambling addiction. Referring to online casinos as the “fentanyl of gambling,” he cited a 335% surge in calls to Louisiana’s gambling addiction hotline since digital sports betting was introduced in 2022.

Industry’s Counterpoints
Other industry players, including Boyd Gaming and Caesars Entertainment, painted a different picture. Boyd Gaming representatives asserted that online casinos attract a distinct customer base, creating market growth without affecting the number of land-based patrons.

Former Michigan legislator Brandt Iden also weighed in, sharing Michigan’s success story with legalized online gambling. According to Iden, taxes from digital casinos provided crucial funding for community services like policing and infrastructure maintenance during the COVID-19 pandemic.

Challenges to Cordish’s Position
John Pappas, a consultant for iDEA Growth, challenged Cordish Companies’ position, pointing out that the company already operates online casinos in Pennsylvania. He accused Cordish of hypocrisy, suggesting the firm seeks to participate in a regulated Louisiana market while opposing its establishment.

The debate over online casinos highlights a clear divide within the industry. While many operators view online gambling as a promising revenue stream, Cordish Companies maintains that the potential social and economic downsides outweigh the benefits. Louisiana lawmakers now face the challenge of balancing the promise of increased tax revenue with concerns about addiction and market cannibalization.