Louisiana Governor John Bel Edwards recently signed the final pieces of legislation to make sports betting legal in the state. He signed SB 247 and SB 142, the two primary regulatory and appropriation bills and previously signed HB 697, outlining the tax and fee structure. The three measures establish the main framework for retail and mobile sports betting. Legislative sponsors said sports betting could launch this fall with 41 potential licenses; each of the state’s 20 casinos can have two online skins, and the Louisiana State Lottery also will be allowed to open a mobile sportsbook, plus kiosks at hundreds of restaurants and bars.
Altogether, sports betting could generate more than $2.5 billion in annual wagering by its third year, plus more than $200 million in operator revenue. Analysts said with online bets taxed at 15 percent and retail bets at 10 percent, the two combined could generate up to $30 million in annual tax revenue.
Louisiana voters approved sports betting in 55 of 64 parishes in 2020. Under the legislation, bettors age 21 or older and physically located in those parishes can place a bet with a licensed operator from their phone or mobile device; in-person registration is not required. Athletes, coaches and referees may not bet on a sporting event in which they are involved. Bets can’t be placed on high school or youth sports events. And, an individual who lives in a parish that didn’t approve sports betting can drive over to a parish where the wagering was legalized to place a bet.
The state offers an action-packed sports scene, with a National Football League and National Basketball Association franchise, five major college football programs and 12 National Collegiate Athletic Association Division I men’s basketball programs.
Eric Ramsey, analyst for the PlayUSA.com network, said, “Louisiana should be able to outperform its relatively small population. In fact, as a market, Louisiana shares many of the same attributes that have made New Jersey and Nevada sports betting Meccas. The state has long been home to a thriving casino industry, New Orleans itself can draw tourists from all over the country and Louisiana is not bordered by another state that offers both retail and online sports betting.”
Dustin Gouker, lead analyst at PlayUSA.com, added, “The basic framework will be appealing for sportsbook operators, and that will help the state reach its potential. Even more, Louisiana set up a relatively open and competitive market, which benefits consumers while making the industry a reliable revenue producer for the state for years to come.”
Gouker said New Orleans is particularly appealing as a sports tourism market, attracting fans from all over the country for regular season games and special events. He said residents from neighboring states will regularly travel across state lines to place bets.
Senate President Patrick Page Cortez sponsored the regulatory bill providing up to 40 licenses. State Rep. John Stefanski sponsored the tax and fee structure bill, which establishes a $250,000 initial application free with a $500,000 license fee for the first five years. Of the 20 available licenses, casinos and racetracks have first priority until January 1, 2022. If they do not use all the licenses, fantasy sports betting operators and video poker establishments can apply.
State Senator Rick Ward sponsored SB 142 which distributes sports betting tax revenue as follows:
- 25 percent, or up to $20 million, to the Early Childhood Education Fund
- 10 percent to the Sports Wagering Local Allocation Fund
- 5 percent to the Sports Wagering Purse Supplement Fund
- 2 percent to the Behavioral Health and Wellness Fund, or $500,000, whichever is greater
- 2 percent to the Disability Affairs Trust Fund, up to $500,000
- The remainder would to the General Fund.
Most major U.S. sportsbook operators are expected to apply for one of Louisiana’s 41 licenses, including DraftKings, FanDuel and BetMGM. Observers said Caesars also is expected to open online and retail sportsbooks. The parent companies of Barstool Sportsbook, Golden Nugget, TwinSpires and B Connected all operate casinos in Louisiana and are likely to launch sportsbooks. It’s expected that college sports betting will account for at least 15 percent of total handle.
Louisiana regulators now will finalize rules for sportsbook operators, which should take a few more months. After final rules are posted, sportsbook operators can apply for licenses. The legislation allows casinos and horse racetrack operators to receive temporary licenses.
