The Louisiana House Ways and Means Committee recently moved one of two bills that establishes a framework for sports betting, which voters in 55 of 64 parishes approved last November. The measure sets the tax rate for retail sports wagering at 10 percent online wagering at 18 percent, and charges $250,000 for an application fee and $500,000 for a 5-year “franchise fee.” Similar bills will move through the Senate. Bill sponsor state Rep. Todd Stefanski said several legislators have told him they’ll support the measure, which addresses taxes, fees and lottery issues.
Stefanski said the legislation allows 20 land-based licenses, each with two skins. The Louisiana Lottery also will have an online skin and retail locations. Lottery locations would offer wagering kiosks and any lottery partner or holder of a Class A alcoholic beverage license could participate in sports betting. “We wanted to find a way for your local bar, local restaurants to take part in this, and we think this is the way, and also would allow for kiosks in each place,” Stefanski said.
The Senate bill, sponsored by Senate President Patrick Page Cortes, addresses non-lottery sports betting, which would be regulated by the Louisiana Gaming Control Board. The measure caps the number of licenses at 20 for the state’s 15 riverboat casinos, the Harrah’s land-based casino in New Orleans and four horse racetracks. The bill is in Judiciary B Committee; no hearing date has been set.
Stefanski noted, “The kicker here is full mobile. If you look at Mississippi, they have mobile, but you have to be on the gaming floor. But if we pass full mobile, I think we’ll be on the higher end of the spectrum.” If the legislation passes, Louisiana would be the first in the region to allow bettors to wager from their mobile devices. Mississippi retail sports betting allows on-site-only mobile wagering.
One of lawmakers’ primary concerns is how sports betting tax revenue would be spent. Past proposals directed funds to early childhood education. Stefanski, who has an autistic brother, said his bill only deals with revenue from lottery based sports betting, and revenue would be earmarked for a “developmental disability sub-fund” and for K-12 education. Cortes’ bill addresses sports betting proceeds from commercial entities.
Stefanski commented, “I just want sports betting to become a reality. I don’t want us to fumble the ball again, and I don’t want everyone in the state to be looking at us and saying, ‘Why didn’t you do this?’”
