In Louisiana, 47 of the state’s 64 parishes approved betting on online daily fantasy sports contests, and many officials hope that will lead to allowing sports betting. State Rep. Kirk Talbot, the sponsor of the ballot measure, said he would have been glad if 40 parishes approved the issue. “For one thing I don’t think people view fantasy sports as quote, unquote gambling. There are so many people that play it now on free sites or their own office pool. I don’t think it has the stigma of gambling,” Talbot said.
The ballot measure was approved in southern Louisiana by 61 percent in East Baton Rouge Parish, 73 percent in Orleans and 69 percent in Jefferson. In Lafayette Parish, the issue received 57 percent of the vote, 62 percent in St. Tammany and 66 percent in St. Charles. Ryan Berni, president and chairman of the committee that pushed the measure, said parishes that approved it represent 92 percent of the state’s population. The 17 parishes that rejected the proposal were primarily rural, sparsely populated areas of north central and western Louisiana.
DraftKings and FanDuel were the major contributors to the $1 million campaign promoting the ballot measure, which will allow players to participate in DFS online games in the 47 parishes that approved the games.
DFS opponents blamed their loss on the significant money promoting the issue. Louisiana Family Forum President Gene Mills said, “We were not really surprised. There was a large sum of money expended, largely in parishes that have already said yes to gambling.” Mills said when the legislature establishes the new regulations and tax policies for DFS next year, his group will work to make sure minors can’t play the games and that parishes that rejected DFS are kept off the grid.
Fan Duel Government Relations Director Cory Fox said the industry does not expect that to be a problem due to geofencing, which was used to keep daily fantasy sports out of Louisiana, while still allowing it in neighboring states. The technology simply will be used on a more local level. “Like Uber, we know where you are,” Fox said. Gaming Control Board Chairman Ronnie Jones added he doesn’t expect geofencing to be an issue. “I have absolute confidence in that technology,” he said.
Others will be watching as DFS regulations are drafted, including Alton Ashy, the state video poker industry’s lead lobbyist in the state. “It needs to be fair. We are definitely going to have an opinion on who is going to regulate it, age limits and the tax rate. It needs to be a level playing field, particularly since DraftKings and FanDuel are not making an investment. It’s going to take money from other types of gaming.”
Now the Louisiana legislature is expected to pass a tax rate and other regulations for the industry in the session that begins April 8. Most Louisiana casinos pay a 21.5 percent tax rate, racetracks pay 18.5 percent in state taxes and 4 percent local, and video poker operators pay 26.5 percent or 32.5 percent in a truck stop. Ashy said DFS operators should be taxed at a rate between casinos and video poker operators. Talbot stated he hasn’t determined an appropriate rate yet. “I have to look at what is reasonable. I haven’t figured out the sweet spot yet,” he said.
The next step would require the Louisiana Gaming Control Board to implement new rules based on the laws enacted by the legislature. That process includes public input and could take at least four months to finalize.
As a result, Gaming Control Board Chairman Ronnie Jones said
DFS probably won’t be available in Louisiana until October or November 2019. “There is no way to fast track the rules and regulations,” he said.
The majority approval of DFS has reignited interest in legalizing sports wagering, which could generate $62 million a year, according to the American Gaming Association. Last year, lawmakers rejected state Senator Danny Martiny’s sports betting legislation. But he said the DFS vote indicates voters who were cautious about expanded gambling now understand it offers a way to generate revenue. “I am encouraged by the vote,” Martiny said. Talbot added, “Maybe crack the door open a little on sports betting. That is a whole different animal. As long as we get it before football season starts. I think that is what we are shooting for.”
