J Kelly Duncan offers InterGaming Law an insider’s view of i-gaming in Louisiana.
THE US Department of Justice’s opinion of September 11, 2011, appeared to open the door for i-gaming in the US for all forms of gaming other than sports betting.
With this momentous development came the anticipation that the US finally would join Canada, parts of Europe and elsewhere and embrace i-gaming as the next big thing in response to what otherwise is viewed as a bricks and mortar gaming industry that some argue is reaching a saturation point in the US and is out of step with a younger generation wed to online entertainment.
The excitement that the US finally was ready to participate in what has become a multi-billion dollar industry worldwide has been tempered by a recognition that only a very few, highly populated states have the liquidity to justify what currently is legally limited to intrastate internet gaming. This could change if Congress were to adopt federal legislation that will provide for an interstate internet gaming industry. This will require fashioning legislation that is both acceptable to the states and the qualified Indian Tribes – not an easy undertaking. Nevertheless, legislators in Nevada, New Jersey and Delaware have adopted laws to allow those states’ participation in the i-gaming industry and at least eight other states tried to legalise some form of online gaming in the past year but failed.
Louisiana is not new to gaming. Beginning in the early 1990s, Louisiana, to promote economic development, authorised several forms of gaming including a state lottery, gaming upon up to 15 riverboats, a single land-based casino in New Orleans and video draw poker devices in bars, restaurants, motels, hotels and truck stops. In 1997, slot machines at eligible horse racing facilities were authorised. Additionally, there is gaming conducted at three tribal casinos in the state, pari-mutuel betting on horse races and charitable gaming.
In 2012, $671m in direct gaming revenue was generated and in the past 23 years, the gaming industry has contributed $14.3bn to the state budget. Gaming industry generated revenues will constitute six per cent of state revenue in 2013.
Read the full article in the current issue of InterGaming Law.
