Posted on: November 11, 2024, 10:16h.
Last updated on: November 11, 2024, 10:16h.
Sports betting industry observers likely didn’t have Louisiana considering a major tax increase on their 2024 bingo cards, but it’s possible following newly filed legislation.
Earlier Monday, Rep. Roger Wilder III (R-Livingston Parrish) proposed House Bill 22 (HB 22), which if enacted, would more than triple Louisiana’s sports betting tax to 51% from 15%.
There is hereby levied a fifty-one percent tax upon the net gaming 2 proceeds from sports wagering offered to consumers within this state pursuant to this 3 Title electronically through a website or mobile application,” according to text of the bill.
Mobile sports betting debuted in Louisiana in early 2022 and since then, that form of wagering has flourished in a state that was already the casino capitol of the Southeast. Currently, the state ranks 15th in handle since its legalization of sports wagering, though that position is likely to fall as more populous states such as Florida and North Carolina deliver more data.
Louisiana May Be Inspired by NY Sports Betting Tax
It’s not clear if Wilder drew inspiration from New York or Vermont in proposing HB 22, but those are the only other states with sports betting taxes of 51%.
While mobile sportsbook operators have been vocal in their criticism of New York’s tax scheme, gaming companies and the state know the Empire State has leverage in the form of its status as the fourth-largest state in the country. That population heft is not advantage Louisiana holds.
Wilder’s proposed legislation could ruffle the feathers of sportsbook operators in another way. If passed into law, it would repeal a previous statue that allows for promotional play — a primary customer acquisition tool in the industry.
“Repeals the provision authorizing promotional play and amends the definition of ‘net gaming proceeds,’” according to the bill.
The legislation is not applicable to Louisiana’s pari-mutuel industry, including bets made on horseracing and winning wagers.
Louisiana Tax Proposal Could Surprise Industry
Earlier this year, Illinois altered its sports wagering tax scheme, moving to a graduated levy system under which the largest operators, such as DraftKings and FanDuel, payer higher taxes than their smaller market share rivals.
That move resulted in those two gaming companies seeing their tax rates effectively double in that state and it stoked speculation in the industry that other states could move to increase sports wagering taxes in an effort to boost revenue.
However, the prevailing wisdom was that if any states were to raise sports betting levies over the near-term, it’d be Michigan or New Jersey — states that lack political commonalities with Louisiana. That could also be a sign the industry, which loathes high taxes, could be caught off-guard by Wilder’s proposal.
At this time, it’s not clear if there’s momentum for Wilder’s bill, but it might have one thing on its side. Louisiana has favorable sports betting geography in that none of the three states with which it shares borders currently permit mobile betting.
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Casino.org News 2024-11-12 04:25:40
