Louisiana lawmakers picked up the sports betting tax discussion Wednesday, with the sponsor deferring the bill to work on it with additional input.
Rep. Roger Wilder presented his House Bill 22 to the House Ways and Means Committee Wednesday. The bill would raise the Louisiana sports betting tax rate to 51% from 15%, tying New York as the highest sports betting tax rate in the US.
Wilder opted to defer the bill, understanding various stakeholders are unhappy with how it stands. The Louisiana legislature is in a special session that will run until Nov. 25. Wilder’s bill requires a two-thirds majority in both chambers to pass.
Louisiana sports betting tax bill
During Wednesday’s hearing, responsible gambling representatives endorsed the bill. Representatives from Caesars and the Louisiana Casino Association spoke against the tax increase. They cited potential negative effects on the brick-and-mortar casinos in the state.
Even before the hearing, other industry stakeholders opposed the bill. Jeff Ifrah, co-founder of the iDevelopment and Economic Association, released a lengthy statement Tuesday.
“This measure, if passed, will make Louisiana one of the highest-taxed sports betting markets in the country, significantly undermining the competitiveness of legal operators in the state,” Ifrsah said. “Such a sharp increase would not only raise costs for operators but ultimately impact consumers, who will bear the brunt through less favorable odds and reduced promotional opportunities.”
Why the tax bill?
Gov. Jeff Landry called the special session in an effort to help cover a $700 million budget deficit. Wilder’s bill would greatly increase the amount of taxes the Bayou State can take from sportsbooks by hiking the rate and eliminating the ability to deduct up to $5 million in promos.
In the most recent fiscal year, sportsbook operators paid $52.2 million in taxes. Under Wilder’s bill, they would have paid $205.3 million.
