Jeremy Alford and David Jacobs: Lawmakers hope to slow growth in mobile betting

While the Louisiana Legislature has embraced mobile sports wagering in recent years, legislators have used the ongoing regular session to tap the brakes on other forms of online gaming.
This most recent policy wave was fueled not only by a growing need for better enforcement, but also by consumer protection concerns and a fear of losing state revenue to unregulated outlets.
Despite other states taking the leap, even the Louisiana Lottery hit a brick wall as boosters endeavored to enact online sales during the Legislature’s session, which adjourns June 1.
For now, at least, the trend line places the Legislature in the corner of a national anti-expansion chorus that can be found among attorneys general, gaming regulators, tribal groups and industry associations.
One proposal pending action on Gov. Jeff Landry’s desk would turn several gambling-related offenses — such as gambling by computer, betting on cockfights and bribing athletes — into predicate offenses under racketeering law.
If endorsed by the governor, HB 53 by Rep. Bryan Fontenot those participating in such activities could be considered members of an organized crime ring.
Violators could face fines of up to $1 million and up to 50 years in prison. The bill is part of Attorney General Liz Murrill’s package.
“This change will allow prosecutors to pursue enterprise-level prosecutions, seize illicit proceeds, and dismantle organized gambling operations from the top down, not just low level, but actually be able to go to the enterprise or the operators that are financing it and profiting off of it,” Dawn Himel, director of the AG’s gaming division, told the House Criminal Justice Committee.
She said the bill was partly inspired by a multimillion dollar illegal sports betting operation run with contraband devices from Louisiana prisons. A Baton Rouge assistant principal whose brother was the alleged ringleader is among those arrested in the investigation.
House Education Chair Laurie Schlegel said her HB 883 would work well in concert with HB 53. Schlegel said she consulted with the AG’s office on the bill, though it is not part of their package.
Her bill goes after illegal online “sweepstakes casinos” and passed both chambers without a dissenting vote. It follows a similar measure by Sen. Adam Bass from last year that also passed unanimously, only to get vetoed.
In his veto message, Landry called the bill’s language “overly broad” and said it was “a solution in search of a problem that is already being solved by our current system.”
While her bill didn’t have the governor’s explicit backing, she said she shared its contents with his staff as it moved through the process and didn’t get any negative feedback.
While illegal gambling operations often are based offshore out of the easy reach of state enforcers, Schlegel said her bill would give the AG new tools, “especially around some of the platforms that facilitate this online illegal gambling.”
In contrast to the enforcement bills, efforts to allow the Louisiana Lottery to expand into cyberspace once again never got out of committee. CEO Rose Hudson said the experience in other states shows that online sales can boost revenue (which supports state spending) without cannibalizing brick-and-mortar sales, while still verifying the age and location of customers.
But pushback from retailers, gambling opponents and advocates for in-person gaming have so far been too much for supporters to overcome, though they haven’t given up.
“We will continue to develop our approach by gathering data and ensuring Louisiana Lottery is able to fulfill its mission by generating maximum revenue for the state,” Hudson said in a prepared statement.
“We look forward to working with state lawmakers and the administration and believe legislation could be successful in the future.”
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