Sports activities betting business observers seemingly didn’t have Louisiana contemplating a serious tax enhance on their 2024 bingo playing cards, but it surely’s potential following newly filed laws.
The Caesars Superdome in New Orleans. A Louisiana politician proposed a invoice that will increase the state’s sports activities betting tax to 51%. (Picture: Getty)
On Monday, Rep. Roger Wilder III (R-Livingston Parrish) proposed Home Invoice 22 (HB 22), which if enacted, would greater than triple Louisiana’s sports activities betting tax to 51% from 15%.
There’s hereby levied a fifty-one % tax upon the online gaming 2 proceeds from sports activities wagering supplied to customers inside this state pursuant to this 3 Title electronically via an internet site or cellular utility,” in response to textual content of the invoice.
Cell sports activities betting debuted in Louisiana in early 2022 and since then, that type of wagering has flourished in a state that was already the on line casino capital of the Southeast. At the moment, the state ranks fifteenth in deal with since its legalization of sports activities wagering, although that place is more likely to fall as extra populous states akin to Florida and North Carolina ship extra information.
Louisiana Could Be Impressed by NY Sports activities Betting Tax
It’s not clear if Wilder drew inspiration from New York or Vermont in proposing HB 22, however these are the one different states with sports activities betting taxes of 51%.
Whereas cellular sportsbook operators have been vocal of their criticism of New York’s tax scheme, gaming firms know the Empire State has leverage within the type of its standing because the fourth-largest state within the nation. That inhabitants heft isn’t a bonus Louisiana holds.
Wilder’s proposed laws might ruffle the feathers of sportsbook operators in one other manner. If handed into regulation, it could repeal a earlier statute that permits for promotional play, a main buyer acquisition instrument within the business.
“Repeals the supply authorizing promotional play and amends the definition of ‘web gaming proceeds,’” in response to the invoice.
The laws isn’t relevant to Louisiana’s parimutuel business, together with bets made on horseracing and profitable wagers.
Louisiana Tax Proposal May Shock Trade
Earlier this yr, Illinois altered its sports activities wagering tax scheme, transferring to a graduated levy system underneath which the biggest operators, akin to DraftKings and FanDuel, pay greater taxes than their smaller market share rivals.
That transfer resulted in these two gaming firms seeing their tax charges successfully double in that state and stoked hypothesis within the business that different states might transfer to extend sports activities wagering taxes to spice up income.
The prevailing knowledge was that if any states have been to boost sports activities betting levies over the close to time period, it could be Michigan or New Jersey — states that lack political commonalities with Louisiana. That may be an indication the business, which loathes excessive taxes, may very well be caught off-guard by Wilder’s proposal.
Right now, it’s not clear if there’s momentum for Wilder’s invoice, but it surely may need one factor on its facet. Louisiana has a positive sports activities betting geography in that not one of the three states with which it shares borders at the moment allow cellular betting.
