Louisiana Lawmaker Withdraws Bill For Record-High Sports Betting Tax
Louisiana's sports betting sector faced a significant legislative moment as Rep. Roger Wilder (R-71) deferred a bill that would have dramatically increased the state's sports betting tax rate from 15% to 51%.
Steelers players in black and gold
The proposed legislation, HB 22, would have placed Louisiana among states with the highest sports betting tax rates, matching New York, New Hampshire, and Rhode Island. The bill also aimed to eliminate operators' ability to deduct promotional play credits from taxable revenue.
Wilder's motivation stemmed from Louisiana's gray market slot machines, which return approximately 32.5% to the state. However, he acknowledged the need for further refinement of the proposal, stating "The math doesn't math, the numbers don't make sense."
Under current rates, Louisiana collected $52,171,979 in sports betting taxes last fiscal year. The proposed 51% rate would have increased this to $182.68 million. Operators deducted $44.35 million in promotional play from their taxable revenue during this period.
Industry representatives opposed the increase, citing market size differences. Wade Duty of the Louisiana Casino Association highlighted that New York's population of 19 million dwarfs Louisiana's 4 million, resulting in eight times the betting handle.
The iDevelopment and Economic Association (iDEA) warned that such a high tax rate could stifle market growth, potentially causing operators to:
- Scale back offerings
- Pass costs to consumers
- Exit the market entirely
Wilder plans to continue working on the legislation and may reintroduce it with a lower tax rate increase, acknowledging that "Louisiana is not New York, Rhode Island, or New Hampshire."