A proposal to significantly increase the tax on online sports betting revenue in Louisiana has been deferred amid mounting opposition from the gaming industry. House Bill 22, introduced by Representative Roger Wilder, R-Denham Springs, aimed to raise the tax rate on gross gaming revenue from 15% to 51%, a move that would align Louisiana’s tax rate with New York’s—the highest in the country. The bill was expected to boost state revenue by $151 million, according to a report from the Legislative Fiscal Office, and was introduced as part of Governor Jeff Landry’s broader tax reform package.
Initially, the measure drew bipartisan support as a way to generate additional revenue for the state and offset potential revenue losses associated with lowering state income taxes. However, it was deferred during a House Ways and Means Committee meeting at Wilder’s request, with the representative indicating his intent to revisit the proposal after gaining a better understanding of the gaming industry’s concerns.
“I have some learning to do,” Wilder admitted according to Louisiana Illuminator, suggesting that more dialogue with industry representatives could help refine the bill. While Wilder is open to future adjustments, it is unlikely the proposal will reappear during the current special legislative session, set to end by November 25.
Industry Pushback and Economic Concerns
The proposal to raise Louisiana’s sports betting tax rate faced significant resistance from operators and casinos within the state. Industry leaders argued that such a high tax could impact their business models, potentially causing companies to rethink their investment strategies in Louisiana. Among those who voiced opposition was Samir Mowad, General Manager of Caesars New Orleans, who explained that a 51% tax rate would alter the economic calculations that initially led to major investments by Caesars in Louisiana, including securing naming rights for the Caesars Superdome.
“You think about our Caesar’s Superdome sponsorship at a 51% tax rate, we wouldn’t have made that investment,” Mowad stated, highlighting the risks posed by such a dramatic tax increase. Representatives from the Louisiana Casino Association also voiced concerns, comparing Louisiana’s market conditions to those of New York. “Louisiana is not New York,” explained Wade Duty, Executive Director of the Louisiana Casino Association, who pointed out the disparity in population and sports betting handle between the two states. With New York’s population at around 19 million compared to Louisiana’s 4.5 million, Duty suggested that Louisiana’s gaming market is smaller and less capable of sustaining the same high tax rates.
Divergent Views on Gambling’s Societal Impact
Despite the opposition from industry players, House Bill 22 received vocal support from unlikely allies, including the conservative Louisiana Family Forum and the progressive organization Louisiana Progress. Both groups cited concerns over the social consequences of widespread sports betting and the financial burdens related to gambling addiction treatment. Kathleen Benfield, Legislative Director of the Louisiana Family Forum, highlighted the potential for increased gambling-related harm, noting that sports betting advertisements are prevalent, often encouraging risky behavior among both adults and minors. “Children and adults are being bombarded with advertising and inviting gamblers to play every day and get lucky every night,” Benfield said, arguing that these marketing tactics contribute to addiction and strain on families.
Likewise, Peter Robins-Brown, Executive Director of Louisiana Progress, shared insights into the broader social impact of legalized gambling, pointing to data that shows a correlation between increased gambling and negative societal outcomes, such as domestic violence and economic insecurity. “We’re seeing things like increases in domestic violence and increases in economic insecurity among people,” Robins-Brown added, emphasizing the need for the industry to bear some responsibility for these issues.
Future Prospects for the Bill
The current special session, which is focused on restructuring Louisiana’s tax code, was called by Governor Landry to address state revenue needs and stimulate economic growth. While House Bill 22 was shelved for now, Wilder has expressed interest in continuing discussions with industry stakeholders to develop a tax plan that could achieve the state’s revenue goals without jeopardizing the gaming sector.
There is potential for a revised version of the bill to return in future legislative sessions, with amendments that may lower the proposed tax rate or adjust it to match other gambling sectors in Louisiana, such as slot machines at gas stations, which are taxed at 32.5%. For now, Louisiana’s sports betting market will continue under the current tax framework, but the conversation surrounding its future is far from over.
