Louisiana Sports Betting Unlikely In 2019

Louisiana lawmakers are expected to reconsider sports betting in the coming legislative session. The approval of online fantasy sports in 47 out of the state’s 64 parishes indicates voters may support other sports-related gambling. However, state Senator Ronnie Johns (l.) said lawmakers may not be able to work through sports betting issues until 2020.

Louisiana Sports Betting Unlikely In 2019

When the 2019 legislative session in Louisiana starts April 8, lawmakers will again take up a sports betting measure. Last year, a bill that would have allowed voters to decide if sports betting should be made legal was unsuccessful. State Senator Ronnie Johns said, “I feel certain that we will be debating it again this coming April.”

Governor John Bel Edwards noted, “There are many different ways that sports betting can be undertaken. We’re trying to figure out what works for Louisiana.”

Edwards has expressed concern that Mississippi’s approval of sports betting last year has put Louisiana casinos on the defensive. Johns added, “I think it’s something that we need to do and not for the sake of expanding gaming in Louisiana. It’s basically to insulate our current businesses. We know we are starting to lose business to Mississippi.”

The American Gaming Association has estimated sports betting would generate $245-$288 million in annual revenue for Louisiana. That would bring in $52.7-$2 million for the state. Supporters of legalized sports betting note Mississippi casinos also have benefited from increased revenue for hotel stays, restaurant and bar tabs and charges for other amenities.

Johns said several people have told him they thought they were voting for in-person sports betting when they voted in November to approve online fantasy sports. Forty-seven out of the state’s 64 parishes approved allowing DFS. Observers said that showed voters may be willing to support other sports-related gambling, like sports betting.

If lawmakers agree to put legalizing sports betting on the ballot, the issue most likely would come up on the October 12 election. Still, certain details would need to be resolved, such as a tax rate. Louisiana’s 21.5 percent gaming tax rate is among the highest in the U.S. and more than double Mississippi’s rate. AGA Senior Vice President of Public Affairs Sara Slane said, “If the tax rate is too high, we can’t compete with the illegal market that doesn’t pay taxes.”

Also, last year legislators did not thoroughly discuss so-called integrity fees desired by professional leagues, nor did they address where sports betting would be allowed; the 2018 bill included all casinos, video poker operators and racinos. Allowing casinos to offer mobile betting also was not reviewed.

Johns said lawmakers may not be able to work through all the sports betting issues until 2020.

Quincy Raven, executive director of business development at Scientific Games, said, “From our perspective, it’s not necessarily the unknown. So many of these challenges have already been undertaken. It’s here. It’s been understood. Will we have to work out wrinkles in the future? Of course, but that’s the nature of the business.”