Digital tickets, real money: Louisiana's bold online lottery plan

Louisiana aims to join a select group of states permitting online lottery sales through House Bill 228. This legislative move could significantly boost state revenue while potentially creating a regulatory distinction between lottery games and other forms of online gambling.

Louisiana's digital lottery initiative

The southeastern state is pushing forward with digitization plans. Representative Vanessa Caston LaFleur submitted House Bill 228 on April 1 to the state House of Representatives, proposing to permit online lottery sales in Louisiana.

The bill's language seeks to amend existing statutes "to provide for the purchase of lottery tickets through the internet" and expand the duties and regulations of the Louisiana Lottery Corporation (LLC).

Limited company in the digital space

While 45 states plus the District of Columbia and Puerto Rico operate state lotteries, only a handful currently allow direct online ticket sales. Kansas, Massachusetts, Tennessee, and West Virginia are some states that permit their state lotteries to sell tickets directly to customers via digital channels.

If HB228 passes, Louisiana would join this small but growing group. Legislators project substantial revenue increases—potentially tens of millions of dollars—that would flow back to state coffers and support various Louisiana initiatives.

The regulatory loophole question

A crucial aspect of HB228 is a provision that would explicitly not classify online lotteries as a form of online gambling. This creates a potential regulatory loophole, as Louisiana otherwise maintains strict laws around betting and gaming.

Currently, the state only permits online sports betting while prohibiting online casino games and poker. Physical casinos operate under tight restrictions, primarily limited to riverboat venues.

The bill's inclusion of instant win games and online scratch cards might raise concerns among Louisiana's 105 state representatives and 39 state senators, as these products closely resemble casino-style games while potentially being classified differently under the proposed law.

Impact on lottery couriers

The legislation could significantly affect lottery courier companies—services that purchase physical tickets on behalf of customers who order through courier apps. Notable firms like Lottery.com, Jackpocket, Jackpot.com, and theLotter have launched across multiple states, though none currently operate in Louisiana.

If Louisiana establishes its own online lottery platform, the market opportunity for these couriers could disappear before it begins. The state may be taking cues from neighboring Texas, where courier services have recently faced scrutiny regarding lottery integrity.

Only New York and New Jersey have formally regulated lottery couriers, while Wisconsin, Indiana, and Virginia have banned them outright. Louisiana has shown no interest in regulating these services, suggesting the state prefers direct control over its lottery's digital presence.

Joining the digital lottery landscape

If successful, Louisiana would join sixteen other jurisdictions offering some form of online lottery play, including Connecticut, District of Columbia, Georgia, Illinois, Kansas, Kentucky, Michigan, New Hampshire, New York (subscription only), North Carolina, North Dakota, Pennsylvania, Rhode Island, Tennessee, Virginia, and West Virginia.