Sports betting and fantasy sports measures are moving forward in the Louisiana legislature which convened April 8. The state has not approved any new form of gambling since 1991 when lawmakers and Governor Buddy Roemer approved a lottery, riverboat casinos and video poker outlets, due to pressure to compete with Mississippi. Legalized gambling had been approved there in 1990; now fantasy sports and sports books are legal there, and Arkansas also allows fantasy sports, with sports betting coming sometime this year.
In 2018, 47 Louisiana parishes voted for legal fantasy sports games, but legislators still need to create rules and a tax structure before the public can participate. Lawmakers also are under pressure to approve sports betting at the state’s 20 casinos and racetracks.
State. Rep. Kirk Talbot has filed a bill to establish annual fees and regulations for fantasy sports. His measure, House Bill 459, would require operators like Draft Kings and FanDuel to pay a $10,000 annual fee, plus 10 percent of net revenue from bets placed in Louisiana. Individuals age 18 or older could place bets, but not if they’re athletes, referees or involved in the outcome of a wagered contest. Games based on high school or youth sports would be available for bets.
Talbot said the fantasy sports taxation rate could change; other states charge up to 15.5 percent tax and up to a $75,000 license fee. His measure also could require splitting fantasy sports betting revenue between state and local governments. Also, Talbot said he’s been asked to dedicate a portion of fantasy sports revenue to early childhood education but he has declined.
The legislation also does not cap the number of fantasy sports betting licenses that can be issued, unlike Louisiana’s has a strict cap on casinos. Also fantasy sports licensing applications and audits would not be made public.
Conservative groups oppose Talbot’s legislation. Gene Mills of the Louisiana Family Forum said he’s concerned the bill will make fantasy sports betting more accessible to minors. He stated his organization plans to pressure lawmakers not to support it during session.
Legalized sports betting, like fantasy sports, if approved by legislators would require support from voters on a parish-by-parish basis. As a result, the earliest sports betting could be offered would be January 20, according to Ronnie Jones, director of the Louisiana Gaming Control Board. Jones said the board wants at least $100,000 in annual sports betting proceeds for its compulsive gambling programs which already are underfunded.
Four sports betting bills have been filed. State Senator Danny Martiny sponsored Senate Bill 153 which would allow sports wagering on professional and collegiate sports at Louisiana’s four racinos, 15 riverboat casinos and Harrah’s Casino in New Orleans. Betting on high school, video game and electronic sports events would not be allowed. Sports bets could be placed via smartphone from anywhere in a casino, but bettors must be age 21 or older.
Martiny said Louisiana’s casinos and racetracks will lose business to Mississippi and Arkansas if sports betting isn’t legalized. “My intention is to keep the bill as close as possible to what happens in Mississippi,” Martiny said.
Companion legislation in House, sponsored by state Rep. Joe Marino, would tax sports book revenue at 12 percent, with some of that money going to local parishes with betting operations. He said he opposes dedicating revenue but admitted directing revenue to early childhood education, for example, might his legislation easier to pass.
