Legislature of Louisiana Plans to Authorize Sports Wagering
Louisiana Lawmakers Ponder Sports Betting Legalization Ahead of State Legislature Session
Louisiana lawmakers are considering reviving discussions over the legalization of sports betting, with the state legislature's session slated to commence on March 9. Two separate bills, SB130 and SB66, have been pre-filed by senators Cameron Henry and Kirk Talbot, calling for a statewide vote on sports betting during Louisiana's fall 2020 election.
Sports betting would only be permitted in parishes that approve the measure, contingent upon state legislation that facilitates licensing, regulation, and taxation of such activities. As per the Louisiana Constitution, any new gambling proposals by legislators must undergo a public vote in parish referendums.
In 2019, an attempt to legalize sports betting failed in the Louisiana House Appropriations Committee. The bill, SB153, faced rejection due to concerns about gambling addictions and the potential negative effects on residents. The Louisiana Casino Trade Association, which represents the state's casinos, withdrew its support for the bill, labeling it untenable due to the amendments that hindered its progress.
The Committee's decision came despite estimations that legalized sports betting could generate between $30 million and $60 million annually for Louisiana, primarily benefiting the Early Child Education program. While the exact revenue figures following the proposed tax rate change remain uncertain, recent legislation has increased the mobile sports betting tax rate from 15% to 21.5%, with a portion of the revenue expected to support public college athletics and students with disabilities.
Louisiana is currently experiencing outflows of wagering money to neighboring states, such as Mississippi and Arkansas, which have already legalized and launched sports betting. Although the 2021 legalization may not enable Louisiana to launch live sports betting operations before 2021, it could potentially influence neighboring states' policies and revenue models in the South.
Sports betting could be legalized in Louisiana through the passing of bills SB130 or SB66 during the state legislature's session, potentially allowing sports betting in parishes that approve the measure. This would mark a shift from the current situation, where sports betting remains illegal due to state regulations, and individuals often resort to betting in neighboring states like Mississippi and Arkansas.
