The Louisiana Senate recently voted 24-15 to approve SB 153, which would require a statewide, parish-by-parish basis on October 12 for voters to approve sports betting. The bill, introduced by state Senator Danny Martiny, now moves to the House which has time to consider it since the session does not end until June 6. If the legislation is approved, casinos and racetracks in parishes that vote for sports betting could launch it by January 2020. The legislation, if approved, would legalize betting on college and professional sports at Louisiana’s 15 riverboat casinos, Harrah’s New Orleans and four racetracks. Governor John Bel Edwards has indicated he’ll sign the bill if it passes the legislature.
Martiny said he was motivated to draft the legislation because sports betting already is legal in Mississippi and Arkansas. “We’re trying to figure out how to crawl and these people are sprinting. Sports betting is not the solution to all our fiscal problems, but I know if we don’t do it, we will lose money. If nothing else, it stops some of the bleeding from people going to Mississippi and Arkansas,” Martiny said.
Betting only would be allowed in person or on mobile devices within the “gambling area” of casinos or racinos. Although some lawmakers are pushing for mobile and online sports betting, Martiny said that would doom the measure. He urged legislators not to attach amendments allowing mobile or online wagers, as well as those that would direct sports betting revenue to increasing purses at racetracks.
Martiny estimated sports betting would generate $30-$60 million in annual revenue, with 1 percent of net proceeds or $500,000, whichever is greater, dedicated to problem gambling services and the rest to early childhood education programs.
The House companion bill, sponsored by state Rep. Joseph Marino, would tax sports betting revenue at 12 percent and charge operators an annual fee of $50,000. It also would direct money to early childhood education and compulsive gambling programs.
State Senator Karen Carter Peterson opposed the legislation. Earlier she revealed she struggles with gambling addiction. “I hope people don’t have to go through the pain I have with this disease,” she said. Other opponents included the Family Forum and the Louisiana Baptists, whose director Will Hall said, “Compulsive gambling is a huge problem in this state.”
Under the bill, sports betting would be limited to gamblers age 21 or older. Wagers on high school, video game and electronic sports events would not be allowed.
Also in Louisiana, the House Criminal Justice Committee passed House Bill 544 in a 13-0-1 vote. The measure would extend Harrah’s New Orleans’ gambling license for an additional 30 years in exchange for a minimum $325 million in capital investment—a 340-room hotel tower, upgraded gaming floor and celebrity restaurants–plus a $25 million fee upon execution of the contract, of which the city will receive $7.5 million and the state will receive the balance. Caesars Entertainment also will pay $40 million over three years if it decides to acquire ownership of the property; currently the city owns the land and building and leases it to Harrah’s. Furthermore, the casino will donate $6 million annually to New Orleans for “support services” and $3.4 million would help close a shortfall in K-12 state education funding. The state will be guaranteed $60 million in annual taxes, of which New Orleans will receive an estimated $8 million in rent, property and sales taxes.
Caesars officials said the casino resort needs improvements to bring back patrons; last year, gross gaming revenue totaled $288 million, down from $419 million a decade ago. However, they were unwilling to invest in the property without promises from the state that the company would operate the venue over the long term.
Caesars Entertainment Senior Vice President of Government Relations and Development David Satz said, “This deal far exceeds what any casino in the United States pays for renewal.”
