In a 77-24 vote, the Louisiana House, members approved House Bill 697 which would create the regulations and tax rates for sports betting. Last year, 55 of the state’s 64 parishes voted to legalize sports wagering. “The people spoke,” said state Rep. John Stefanski, who sponsored the bill.
The measure would tax net revenue from on-site betting at 10 percent and net revenue from mobile betting at 18 percent. Also, the measure authorizes the Louisiana Lottery to oversee sports betting and place kiosks in bars and restaurants. Stefanski said this provision would help retail establishments that offer video poker terminals and are concerned that legal sports betting could cannibalize business.
The bill currently requires 30 percent of tax revenue to go to services for residents developmental disabilities; 5 percent to parishes where bets are placed; and most of the balance would go to education through the state’s Minimum Foundation Program.
The Senate’s legislation, Senate Bill 202, sponsored by Senate President Page Cortez, would allow the state to issue 20 licenses to sportsbook operators at the state’s 16 casinos and four horseracing tracks. If those venues don’t seek all 20 licenses by January 1, 2022, fantasy sports betting operators and video poker establishments in the parishes where sports wagering is legal could apply for any available licenses. Any operator who receives a license to conduct sports betting onsite also could offer online or mobile betting.
Senate Bill 142, sponsored by state Senator Rick Ward, would require licensing fee revenue to be deposited in the general fund; however, some lawmakers are expected to want the funds to go to early childhood education.
The Senate bill also requires players to be 21 or older and establish an account with a sports betting operator in Louisiana and be physically located in a parish that approved sports betting. State Senator Rick Ward said, “If you live in one of the parishes that did not vote for this, you’ll have to drive into one of the parishes that did.” Also, athletes, coaches and referees would not be allowed to bet on a sports event they’re involved in.
The bill now will go to the full Senate for debate unless it’s diverted to the Senate budget committee for a second review.
