In the November election, 55 of 64 parishes in Louisiana voted to legalize sports betting. Now comes the hard part: getting the legislature to create both a plan and the tax rates that benefit the state.
The Louisiana Gaming Control Board needs to create a regulatory model for gamblers and bet takers to use. Mike Noel, the board chairman, anticipates the approach being similar to those for fantasy sports, which is still waiting to go live, according to The Advertiser.
Noel said the State Police gaming enforcement division has begun taken applications. The gaming board approved an 8 percent tax on the net revenue from fantasy gambling, money earmarked for early childhood education.
The hope is that the time frame to legalize sports betting is quicker.
State Senator Ronnie Johns, sponsor of a sports betting bill, expects a plan in time for the April session of the legislature with approval before the June 10 date when the session ends.
“I will assure you that we will have an agreement between all parties,” Johns said. “There is absolutely a lot of discussion going on right now, among all parties involved.”
If not, it’ll be two more years as tax measures can only be considered in odd-numbered years, according to The Lineup.
Sports wagering could infuse the state with extra income and jobs, a lot more than fantasy sports.
Still undecided is whether to permit mobile betting or stick to in-person sportsbooks. If online, the legislators will establish geolocation borders and create the apps.
“I’ve personally looked at the mechanism of geofencing, and it’s a very safe way of regulating gaming and betting,” Johns said. “The technology has been proven in many other states.”
In December, CQ Holdings, a company that partners with DraftKings at a casino in Illinois, agreed to purchase the Belle of Baton Rouge riverboat casino.
“We tax the 15 riverboat licenses and the land-based casinos a 21 percent tax,” Johns said. “Sports betting won’t be taxed at that rate. We have to be very careful in not overtaxing sports betting because, if you do so, you’re going to severely limit the number of entities around the state.”
In Louisiana, a lot of special interests, as well as state government, want in, according to The Advocate.
Operators of video poker devices found at trucks stops, bars, restaurants, and elsewhere, also want part of the action. As do the traditional sports bars with lots of television screens, fried food and beer for customers who may want to use a properly affiliated kiosk to bet on the games they’re watching.
“There are all kinds of moving parts right now from the industry and those that want to participate,” Johns said.
Louisiana legislators will have to decide whether to allow mobile sports betting or to restrict sports wagering to in-person bets inside a casino. A second bill, which can only begin in the House, will set the tax rates.
Tax rates could be as high as 20 percent, which is what lawmakers sought in 2019, when the effort failed. Most revenues from casino-based games are taxed at 21.5 percent in Louisiana.
Anything over a 10 percent tax rate makes sports betting financially unfeasible for the casinos, Johns said.
