In Louisiana, the seven-member Senate Judiciary B Committee recently heard testimony on various aspects of gambling from a variety of stakeholders. The key topic, however, was sports betting. Committee Chairman, state Senator Gary Smith, said, “We think it’s important we go ahead and take a deeper look at this, because we know we’re gonna see it again.”
Louisiana Gaming Control Board Chairman Ronnie Jones told senators the results of Tuesday’s election regarding daily fantasy sports will indicate how Louisiana residents feel about sports betting. Voters in each parish will determine whether they want to allow daily fantasy sports sites like DraftKings and FanDuel to be legalized.
“The same kind of people that play fantasy sports are the kind, at least a portion, that are going to bet on sports. I think the parish-by-parish vote on fantasy sports is going to be a window into what people want,” Jones said.
In the last legislative session, lawmakers failed to pass a sports betting measure, sponsored by state Senator Danny Martiny. He said he will re-file the measure in the next session, starting April 8.
“I’m going to have a bill. If we pass it, we’re going to be able to keep up with Mississippi,” Martiny said. He noted his bill would legalize and profit from an activity that already is occurring. “I think we are fooling ourselves if we think we are in any way suppressing gaming. Like it or not, it’s here,” he said.
His colleague, state Senator Norby Chabert, added, “If we don’t address it, the world will be way out ahead of Louisiana and we’re going to be lagging behind.”
Mississippi Gaming Commission Executive Director Allen Godfrey, who attended the hearing, said, “The operators we’ve talked to have stated that sports betting is creating a lot of enthusiasm and a lot of new traffic.” According to Mississippi Gaming commission figures, 22 of Mississippi’s 28 casinos started offering legal sports betting in August, the latest being Magnolia Bluffs Casino in Natchez.
Mississippi sports bettors placed wagers totaling $31.77 million statewide last month, generating $5.5 million in taxable revenue and $650,000 for the state, according to gaming commission figures.
The American Gaming Association estimated revenue from legal sports betting in Louisiana would total $245-$288 million and $288 million, resulting in $52.7-$62 million in state revenue.
Supporters said the actual economic impact could be larger. Louisiana State Audit Manager Jeff Traylor said compared to 2017, non-gambling revenue rose 7.46 percent in August and 8.7 percent in September, according to Mississippi gaming figures.
Louisiana Governor John Bel Edwards has said he is open to legalizing sports betting. However, he did not include it in special sessions held earlier this year.
The committee also discussed whether sports betting should be confined to casinos or also allowed online. Jones stated, “If you really wanted to eliminate the black market, you would have brick-and-mortar and mobile opportunities. Mississippi just has physical sportsbooks.” Godfrey agreed, stating, “If you want to do something to suppress illegal sports betting, mobile betting is the way to go.”
Opponents of expanded gambling have cited start-up costs and religious objections, among other issues.
Sports betting could provide a lift to decreasing revenue at certain Louisiana casinos. For example, in Baton Rouge, August marked the 13th-straight month when the combined revenues of the market’s three riverboat casinos declined on a year-over-year basis.
