In an 11-6 vote, the Louisiana House Committee on Administration of Criminal Justice recently approved Senate Bill 153 which would allow betting on professional, college, Olympic and international sports events at the state’s 16 casinos and four racetracks. State Senator Danny Martiny, the bill’s sponsor, said, “This is an industry that currently operates underground. It’s here. We have all of the ills of sports gaming but none of the financial benefits.”
Earlier the Senate voted 24-15 for the measure, which Governor John Bel Edwards supports. Next the bill will go to the full House, where 53 votes are required for passage.
Referendums would be held on October 12 in the parishes with casinos and racetracks, where voters would decide whether to allow sports betting. Then the state gambling board would have to draft and enact regulations.
Martiny estimated sports betting could generate $30-$60 million annually for Louisiana. Net proceeds would be taxed at 13 percent, which earlier was approved 12-9 by the House Appropriations Committee in a separate bill. Of that amount, 10 percent would go toward early education programs with a small amount directed to casino host parishes and to problem gambling services. Licensing fees would pay Louisiana State Police for background checks of the betting operations personnel.
Martiny said the proposed sports betting tax rate is close to Mississippi’s rate of 12 percent. He said Mississippi sports betting generated $2.6 million in tax revenue over the first eight months. “All I’m trying to do is give casinos in Louisiana an opportunity to compete,” Martiny stated.
Lawmakers opposed to Martiny’s bill included state Rep. Valarie Hodges, who said the state needs to find other revenue sources for early learning programs, rather than “off the backs of other people who are losing money. What we legalize, we legitimize.” Committee Chairman state Rep. Sherman Mack said he voted against the bill out of concern that student athletes could be paid to manipulate the outcome of games. And state Rep. Barbara Norton added, “Regardless of what we do here today, those who want to gamble are going to gamble.”
