Louisiana state lawmaker steps down amid federal finance probe into 20-year gambling addiction

A longtime Louisiana lawmaker stepped down last week amid a federal financial investigation into her 20-year gambling addiction.  

Karen Carter Peterson, 52, made her abrupt resignation public on Friday, citing her need to focus on a decades-long battle with depression and chronic gambling. 

‘I must place all of my energy on my mental health and personal well-being, and therefore have tendered my resignation effective immediately,’ Peterson said in a statement. 

The former state senator is also the subject of a federal probe, sources told The New Orleans Advocate.

While officials declined to divulge details about the investigation, they confirmed to the outlet that her finances and gambling addiction, first made public in 2019, will be the focus. 

The Louisiana Democratic Party chapter declined to comment on whether the party has received a subpoena or has been asked by federal authorities to hand in information about Peterson. 

The state senate has not been subpoenaed, President Page Cortez confirmed. 

The Democrat, who made two unsuccessful bids for Congress in recent years, had a political career spanning almost 30 years. 

Peterson, who has received both inpatient and outpatient treatment for her gambling, was elected to the State House in 1999 and then to the Senate in 2010. 

Her term was set to end next year at the end of the legislative session in June. Peterson’s seat will be replaced this fall.  

Former Louisiana State Senator Karen Carter Peterson, 52, resigned on Friday, citing her need to focus on her decades-long battle with depression and chronic gambling (File photo) 

Her resignation comes amid a federal financial investigation into her 20-year gambling addiction 

Peterson’s gambling issues first became public in February 2019 when local news station WWL-TV reported she had received a misdemeanor summons after gambling at L’Auberge Casino in Baton Rouge. 

In Louisiana, people with a gambling addiction can put themselves on self-imposed bans by agreeing to be part of a list circulated around casinos across the state. If they fail to abstain from gambling, they’re issued a summons. 

At the time, Peterson opened up about her gambling and stepped down as chair of the Louisiana Democratic Party, where she had been elected in 2012. 

The former state senator hinted at her resignation on Thursday as she led prayer from the Senate dais.  

‘Over the last few years I’ve participated in successfully and received in-patient and outpatient treatment,’ Peterson said.

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‘I want you to know that this addiction and this disease is insidious, many people suffer from it. The highest rate of suicide from all addictions.’ 

The former state senator hinted at her resignation on Thursday. As she led prayer from the Senate dais, she spoke out about her struggle with chronic gambling

Peterson, who has received both inpatient and outpatient to treat her gambling, was elected to the State House in 1999 and then to the Senate in 2010. She made her resignation public in a statement Friday 

Last month, Peterson sponsored a bill to recognize March as Problem Gambling Awareness Month in the state of Louisiana. The bill was signed and enacted on March 21.

According to the Mayo Clinic, gambling can stimulate the brain’s reward system much like drugs and alcohol do. 

People who develop that type of addiction can lead normal lives and even be considered reliable, responsible and dependable, but traumatic circumstances can trigger episodes of intense gambling.  

‘There are a lot of very successful very educated, accomplished doctors, lawyers, pilots, congressmen, whatever, who have a lot of stress,’ Felicia Kleinpeter, CEO of Imagine Recovery, told FOX8. 

‘As people, we have stress and stress is something that is the real trigger for wanting to lapse back into those behaviors. So, her focusing on her recovery is really really admirable and it’s the greatest gift you can give to herself and people who love her.’ 

The federal probe will look into Peterson’s finances and her addiction. 

According to financial records, Peterson made just above $130,000 in 2020. Besides her $22,000 salary as a senator, she made $109,000 as a counsel for the law firm Dentos, NOLA reported.   

Among Dentos clients are oil, insurance, real state, banking, and lobbying majors. 

It is unclear whether Peterson will remain working at the firm, but she is not currently listed on its website. 

The federal probe will look into Peterson’s finances and her addiction. According to financial records, Peterson made just above $130,000 in 2020. Besides her $22,000 salary as a senator, she made $109,000 as a counsel for the law firm Dentos (File photo)

Peterson, who is married to newly elected CEO of education nonprofit New Schools for New Orleans Dana Peterson, said Friday she was thankful for the support she had received throughout her legislative career. 

‘Since 1999, I’ve had the privilege to serve as the member of the Louisiana Legislature, offering passionate and vigorous advocacy on behalf of the people of this great state. 

‘I am hopeful that my decades of service have had a positive impact on the lives of those for whom I have fought,’ she wrote in a statement.  

‘I humbly ask for prayers and support as I continue my journey of recovery and redemption. God bless the state of Louisiana.’ 

In the state senate, Peterson pushed for bills regarding the rights of human trafficking victims, higher education opportunities, and treatment for cancer patients.