It’s two done and one to go in terms of sports betting bills getting signed in the state of Louisiana. Governor John Bel Edwards has already given his stamp of approval to the first two pieces of legislation and will quickly do so to the third when it finally reaches his desk.
Senate Bill 247 and House Bill 697 were the two pieces of legislation that have already been signed by Edwards. Senate Bill 142 is expected to be passed by the Senate quickly, and that would allow the state to begin the next steps in sports betting.
The first two bills establish the initial rules and regulations for the industry, and SB 142 sets the tax revenue amounts. Louisiana is looking for a big boost in revenue from sports betting, and it was this push that helped get support from voters.
There will be a 10% tax on retail sports betting, while online wagers will be taxed at a rate of 15%. In addition, any company wishing to apply for a sports betting license must pay a fee of $250,000, and the five-year licensing fee is $500,000.
Lawmakers in Louisiana have been working on determining where the tax revenue will go, and those amendments are what still need to be approved by the Senate. It is proposed that 25% of sports betting revenue will go to the Louisiana Early Childhood Education Fund.
12% of the sports betting revenue will go to the parishes where sports betting has been approved. Other small amounts will go to other projects, and the rest of the money goes to the Louisiana general fund.
Bars and restaurants in the state will be able to set up sports betting kiosks to take retail wagers on sporting events. In addition, online-only operators can partner with the state’s casinos to launch a sports betting app.
Only 55 Parishes Affected
When the sports betting industry does officially launch in the state of Louisiana, there will be nine parishes that do not have the ability to launch a sportsbook. Last November, 55 of the 64 parishes in the state voted to approve sports betting, but it was not a unanimous decision throughout the state.
Louisiana saw similar results when it attempted to legalize and regulate the DFS industry a few years ago. Unfortunately, that vote came all the way back in 2018, and the state is still working on getting those DFS sites up and running in Louisiana.
Lawmakers used the lessons learned from the long delay in approving DFS measures, and that helped them get sports betting approved quickly. As a result, sports betting will be available to both residents and visitors of the state, but only in the 55 parishes that are eligible to have options.
Projections for sports betting in Louisiana have been all over the map, but most believe that the state could mirror what took place in Colorado. That state brought in more than $2.3 billion in wagers during the first 12 months, and it could be a sign of good things to come in Louisiana.